RuPay credit card launch delayed further

Delay in launch because NPCI now working on a higher capacity financial technology infrastructure


RuPay, the domestic card payment service provider that was set to launch its credit card in June this year has delayed the launch of its product. In fact, the earlier time line set for the launch of credit card was in January this year and that was later pushed to June. However, now National Payments Corporation of India has decided to shift the launch date even further.

“RuPay credit card was going to be launched in June 2016 but the launch has been further put off. The board approved date for the launch was August 28th but I think that will be a challenge. But we will definitely launch the credit card in 2016,” said A P Hota, Managing Director & Chief Executive Officer, NPCI.

Hota explained that the delay in launch is because NPCI is now working on a higher capacity financial technology infrastructure which is taking time. “Currently, we have a switching system from Euronet. This has a capacity of 40 million transactions a day. However, the peak volume that we have processed is 14 million. But to be on a safe side we have started work on a 100 million transaction capacity owned by FIS,” added Hota.

The management believes that it may take 2-3 years to reach the 100 million volume capacity mark but as a prudent measure they believe that it is better to shift to this infrastructure from the time of launch onwards.

Going ahead, within the credit card segment, NPCI will mainly be focusing on the top end segment which is the gold or the platinum cards as they believe that the growth is likely to come from the higher end variants. In fact, even the debit card segment they have launched a platinum variant and are seeing higher transactions there as compared to the mass end cards.

RuPay is a domestic brand in the card space and is owned and developed by NPCI and aims to compete with Visa and MasterCard that have a strong foothold in the segment. In the last one year, RuPay has gained prominence as all the accounts started under the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme have been given a RuPay card. As per the latest data, so far 21.93 crore accounts have been opened and 18.01 crore cards have been issued under this scheme.