RuPay Progresses Ahead & Forays Into Handling e-Commerce Transactions

by Paul Joseph on June 26, 2013 · 0 comments

India’s answer to global payment processing companies has arrived on the e-Commerce scene. RuPay is now equipped to handle payment transactions on virtual storefronts. RuPay is an indigenous card payment network was launched last year & is supported by State Bank of India ( SBI ), Bank of India ( BoI ), Union Bank of India ( UBI ), Bank of Baroda ( BoB ) and Axis Bank Ltd. In fact, these 5 banks quietly tested the service for months prior to the official launch. The service will be managed & promoted by National Payments Corp. of India Ltd ( NPCI ), a nodal agency jointly owned by the banks. Coincidentally, NPCI manages the electronic payments in the country. Why is RuPay beneficial for merchants & banks? The brand is conceptualized, designed, developed & deployed completely by Indian banks & associated agencies. But what’s more encouraging is the fact that the joining fees that can go up to US$ 50,000 for Foreign card payment systems is completely saved as the service is free for Indian Banks. Additionally, since the payments will be processed entirely within the Indian Territory, banks can save a bundle. Early estimates indicate a reduction of as much as 40% compared to pre-existent processes. Initially, the roadmap for RuPay indicated support for e-Commerce transactions by September last year however, the consortium has managed to add support just now. RuPay should offer a great deal of assurance to the e-Commerce companies since the money will never leave the Indian Jurisdiction & additionally, the service should offer a good deal of reduction in the transaction & handling fees. Not to mention, the banks may pass-on part of the savings to these ventures as well. Built on the lines of China’s UnionPay Card , RuPay will compete directly with the likes of MasterCard who has been one of the global giants alongside Visa as the de facto payment processing & financial management companies. Having launched support for e-Commerce payment, RuPay will now focus on adding multi-support EMV (Europay, MasterCard and Visa) cards as well as contact-less (NFC) payment mechanisms, before offering full-fledged credit cards. Do you think the origins of the service will win customers for RuPay? Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via – Web, Advertising and Technology Blog in India]

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