MUMBAI: The launch of RuPay credit cards has been put off till June as its promoter, National Payment Corporation of India (NPCI), is updating its technology.
“We went for a new switch and the view was that taken why to do it on the old switch and later on migrate to the new switch,” A P Hota, managing director and CEO at NPCI, told ET.
He said technical work on credit card is going on and the steering committee of the corporation is meeting regularly. “We should be in a position to roll out the credit cards by June-July,” Hota said.
NPCI was earlier slated to roll out credit cards under RuPay — a home-grown card payment system that competes with MasterCard and Visa — in January 2016.
NPCI is also awaiting RBI approval to launch RuPay credit card.
NPCI plans to tie up with 5-6 banks for the launch of its credit card operations and will later expand services to other banks, Hota said.
The chip-based cards will be accepted overseas as well, he said. The company has already tied up with China UnionPay, Japan-based JCB Co, and US-based Discover Financial Services of the US to allow RuPay card holders to use their cards in other parts of the world.
Launched in March 2012, RuPay system at present facilitates electronic payments at all Indian banks and financial institutions.
Currently, there are over 222 million RuPay cards out of the total 603 million debit cards in circulation in the country. Within a year of introduction of RuPay cards, over 15% usage on ATMs, point of sale (POS) and ecommerce transactions are done through its platform.
The card has a lower debit card interchange rate compared to international service providers who roughly charge between 0.65%-1% on every transaction.
Since processing of transactions happens domestically, usage of RuPay over Visa or MasterCard result in a lower cost of clearing and settlement for each transaction.