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NPCI leans on bank partnerships to push RuPay credit cards
May 22, 2023
The National Payments Corporation of India (NPCI) is looking to aggressively push up the usage of RuPay credit cards in the market and is seeking bank tie-ups to help this.
According to two senior bankers in the know, NPCI is working closely with a clutch of major banks to find out ways to push the usage of these credit cards and has set an internal target of cornering around 10% of the overall monthly credit card spends in the next year.
“RuPay has hardly moved the needle in its credit card business, but the recent regulatory nod for RuPay credit cards on UPI transactions is opening up fresh use cases,” said one of the bankers quoted above. “Currently, it will have around 1% of the overall spends, the target for NPCI is to push it up 10 times.”
In April 2023, Indians spent ₹1.3 lakh crore through their credit cards across point of sales terminals and ecommerce transactions, RBI data shows. As per industry estimates, around ₹1,300 to ₹1,500 crore could be processed by RuPay currently. The target would be to take it up to ₹15,000 crore per month.
“The credit card market in India has opened up, so overall new card issuance and card swipes is going up, RuPay wants to ride this growth by leveraging UPI,” the other banker quoted earlier said.
Among the large banks, ET understands that Axis Bank, HDFC Bank and SBI Card are front runners in building these partnerships with RuPay. SBI Card has already announced its co-branded proposition with Paytm on RuPay card rails.
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