Rs 60,000 Million Visa, Master Card Indian Business in Danger ?

Card transaction giant Visa and Master Card Rs 6000 crore business in India are under danger due to government digitization initiative. Indian government push to digital payment system has given a big blow to these multinational business as it is presumed that wide use of Aadhaar Pay and Bio metric enabled services will end the good time of card payment in India.

Recent launch of various online payment module and apps like BHIM, UPI, Bharat QR code, AEPS, Aadhaar Pay and upcoming BBPS (Bharat Bill Payment System) has opened the gateways for cardless payment system in India. Withe the wide use of these application, requirement of card acceptance will be minimized and VISA and MasterCard type of company would loose their commission as Card transaction charges. 

Read : Does ATM Debit Card Holder Need to Pay the Charges ?

Initially they felt the heat first time when Rupay card was launched by NPCI.

VISA, MasterCard and such companies urging government to involve the private players other than NPCI for payment system drive initiated by government of India. The recent survey on digital transaction post demonetization shows that there are more than 500% of boost in transaction on digital payment, same time it also shows that card transaction through Debit and Credit card decline. 

Read : Why Paytm or other e Wallet have no future ?

What Hurt Maximum to VISA and MasterCard Business In India ?

Launched of Rupay enabled card not affect much to VISA and MasterCard business as Rupay was internationally not accepted and Rupay was restricted to Basic accounts and Agriculture account majorly by various banks including private and government.

The launch of UPI enabled services like BHIM apps, IMPS and recently launched Aadhaar Pay system for Merchant. The aadhaar pay enabled transaction including UPI and BHIM are free of cost and no transaction fees are being earned by these companies. With the big scale promotion of Aadhaar Pay system in India, VISA and MasterCard would loose the ground as Government make it mandatory for Banks to provide application to all the merchant, which would ultimately profitable for them as no MDR or minimum MDR (Merchant Discount Rate) will be charged on transaction made through these payment system.

Aadhaar Pay system is being supported by 27 banks in India. They are capturing more than 95% of market in India. There are more than 20 crore people who are using UPI or BHIM apps for daily transaction. 

Read : BHIM Aadhaar Pay Merchant Payment Apps – Download,Benefit and Comparison

VISA and MasterCard combined entering into market with new digital payment system with support of many bank. This QR code supported payment system will purely work for seamlessly for merchant payment.

Hope for the Best for these two companies future. Let’s see how they survive in this cashless and commission less market.