Updated: RuPay Enters E-commerce. Will Compete with Visa & Mastercard
Update: RuPay the card payment service backed by a consortium of Indian banks has officially announced its ecommerce foray. On Friday last, central bank officials and government run National Payments Corporation of India launched the service.
The central bank’s national payments corporation of India (NPCI) had enabled e-commerce payments using RuPay, its Mastercard equivalent service earlier this month.
The move will add another payment option to customers. Some sites, like Coke2home, Justrechargeit and Futurebazaar have already started accepting RuPay payments.
Backed by leading banks in the country, RuPay is a card payment service like Visa or Mastercard which is accepted by merchants.
RuPay competes with international card companies such as Visa and Mastercard and has plans for a global roll out in partnership with Discover Financial Services.
China has a similar payment mechanism called the China UnionPay card with a base of 1.8 billlion issued cards accepted in 26 countries. By end of March 2013, there were more than 3 million RuPay cards issued in the country, according to recent reports.
The national payments corporation has plans to launch EMV (Europay, MasterCard and Visa) cards, contact less cards and credit cards in two phases that are yet to come.
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