Development of internet technologies and its ready acceptability in the modern world has transformed the human world. The increased level of technological advancement can be witnessed from the fact that most of the transactions which were carried out manually or with much effort have now been switched with readily available and user-friendly electronic equipment. The advent of digitalization has touched almost all spheres of human lives making it more independent and self-reliant. Numerous forms of interactions are available on cyber-space connecting people via email, chatting, e-calling, e-commerce, e-banking, etc.
Online Payments in India
India finds a vast segment of its population now dependent on technology for carrying out number of transactions. The Government has also made efforts for promoting cashless mode of dealings through the digitalization.
Online payments in India are regulated by the National Payments Corporation of India (hereinafter referred to as "NPCI") which is the organisation for operating retail payments and settlement systems in India. The unified payment interface (hereinafter referred to as "UPI") is an instant real-time payment system developed by NPCI and regulated by Reserve Bank of India (hereinafter referred to as "RBI") that facilitates inter-bank transactions occurring on the webplatform.
Payment Companies in India
A number of payment companies are flourishing in India presently. Card payment companies such as Visa, MasterCard have been prevalent in the Indian market since a long time ensuring hassle-free payment transaction. The recent addition to this is the first of its kind indigenous payment system known as 'RuPay', launched by the NPCI, conceived to fulfil RBI's vision to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.
Advantages of RuPay
The newly introduced RuPay system is beneficial in the following ways:
- Lower cost and affordability in terms of cost of clearing and settlement for each transaction.
- Customized product offering
- Protection of information relating to transaction and customer data
- Provide electronic product options to untapped/unexplored consumer segment in rural areas that do not have access to banking and financial services.
- Inter-operability between payment channels and products
Foreign Players upset
Since its inception, RuPay has been strongly promoted and campaigned for by the Indian Government encouraging the reliance to domestic payment services network. This has resulted in increasing popularity breaking the dominance of the dominant players such as MasterCards and Visa.1 More than half of India's 1 billion debit and credit cards now go through the RuPay payment system challenging the position of the existent entities in the market. Causing a sense of envy amongst the others in this sector has risen regarding their business.
The Indian version of the payment systems in the form of RuPay has gained rapid popularity in the country ousting the major organizations having established their presence since a long time owing to their cost-effective, safe and advantageous features.
Footnote
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