NEW DELHI: India’s finance minister stated on Thursday that credit card and Visa were dropping market proportion to home payments networks, months after mastercard complained to america authorities that Indian high Minister Narendra Modi became the use of nationalism to sell a local rival.

Finance Minister Arun Jaitley spoke about the surging increase of RuPay and Unified payment Interface (UPI), which lets in fast inter-bank fund transfers, on the second one anniversary of Modi’s shock decision to update excessive-price financial institution notes in a bid to flush out untaxed wealth.

Modi has said while Indians use RuPay they were serving the us of a as its transaction costs stay inside India and could assist build roads, schools and hospitals, an endorsement that has concerned buy, new york-based totally mastercard, which is the world’s 2d-largest payments processor.

“nowadays Visa and credit card are losing marketplace share in India to indigenously advanced payment system of UPI and RUPAY Card, whose stocks have reached 65% of the payments done via debit and credit playing cards,” Jaitley stated in a facebook put up approximately the numerous consequences of the observe scrapping exercising, known as demonetisation. Visa declined to comment.

credit card did now not respond to an e mail looking for remark. RuPay procedure bills between banks and merchants for purchases made with credit score or debit playing cards, at the same time as UPI immediately transfers funds between two financial institution accounts linked to cell phones.

Social media backlash

Jaitley became relating to the volume of transactions, not the cost. Though RuPay, owned through many Indian and overseas banks, money owed for greater than half of of India’s one thousand million debit and credit score cards, industry officers say Visa and credit card nevertheless procedure the vast majority of the price of bills transactions within the u . S . A ..

Indian bills transactions have been worth $51 billion in August, in step with significant bank data. Jaitley said RuPay’s general transactions had leapt to 84.3 billion rupees ($1.16 billion) as of September, from 11 billion rupees earlier than demonetisation.

total transactions finished the usage of UPI had jumped to 598 billion rupees ($8.26 billion) from 500 million rupees in October 2016, around the time it become launched. Reuters mentioned remaining week that mastercard complained to the office of the us change representative on June 21 that Modi “related the use of RuPay playing cards with nationalism, claiming it serves as ‘form of countrywide service’.”

The credit card be aware said that even as Modi’s digital bills push become “commendable”, the Indian government had followed “a chain of protectionist measures” to the detriment of global businesses.