While e-commerce is a big driver, we’re seeing a lot of other interesting categories emerge as well. Some bus transportation companies, for example, have recently gone live on UPI.
Praveena Rai, chief operating officer of the National Payments Corporation of India (NPCI), told Shritama Bose and Shobhana Subramanian that the issue of high transaction failure rates has been solved to a large extent. RuPay cards now account for a third of the card payments market, according to Rai.
It’s a pleasant place to be. It’s an incredible challenge to solve. In a situation where the nation needed it, the demand side stepped up. On the one hand, I’m very glad and grateful that we have the core infrastructure running the systems where users were conscious and a much higher level of knowledge was built-up, which was highly need-driven at a time when people were locked in and wanted to conduct their transactions securely without revealing themselves or getting too much touch.
For several people, the invention of digital payments occurred. So the supply-side problems you’re referring to were caused by demand. The lesson is that in India, we must expect exponential growth to continue, with inflection points that will surprise us.
The second factor is reaction time and the ability to rapidly restore order. Today, we will see this in the ecosystem. Institutions have completed the infrastructure work that was needed. We’ve been actively involved in a lot of that activity, thanks to technology that allows us to scale up to more efficiently and productively rather than in a linear fashion.
Are you looking for new stakeholders now that some NPCI shareholders have formed NUEs?
NPCI is committed to India’s digital payments vision, and nothing would have occurred in the last decade if the ecosystem partners had not been equally committed. This is divided into two sections. One example is the role that organizations can play as investors. They can make a variety of market investments. The other is their position as key stakeholders in NPCI. Anything NPCI has brought to the market has been developed in collaboration with other stakeholders. The DNA is not going anywhere. Our strategy has already been put in motion. We’re in a waiting, watching, and observing mode right now.
Zero MDR is also a point of contention in the industry. What effect has it had on NPCI’s life?
It’s important to have a revenue stream, and ecosystem players need to see a return on their investments. That approach will fuel support for the systems that are already in place as long as demand remains high. . On RuPay, our market share has remained steady. By amount, we’re around 34%, and by value, we’re around 30%. On the credit card side of the industry, we’re making a gradual drive. As a result, we now have the whole portfolio.