Ecommerce, News, Technology

Indian card payment network, Rupay enters ecommerce payments

Rupay Card, the only Indian homegrown card has entered phase III of its road map, i.e. acceptance of RuPay for E-Commerce to have its own ecommerce platform to enable cardholders make purchases online as first reported by Nextbigwhat. The formal announcement is expected to come on Friday this week.

Other merchants like Futurebazaar have already started accepting Rupay debit cards for online payments through ccavenue payment gateway.

An initiative of NPCI in partnership with DFS, the Rupay card will start ecommerce payments this month. The service was launched in order to build an environment whereby payment information of the country remains within the country and also to minimize the overall transaction costs of banks.

With Mastercard and Visa being the most dominant players in India, Rupay will face a tough competition in its journey towards success. However, as per the reports, within two years of launch, it has issued over 3 million RuPay cards till march this year and is planning to issue more than 10 million rupay cards by 2014.

“RuPay market share is currently not so significant. However, our growth plan will make it a major rival force to other two existing players in next three-five years”, said A P Hota, Chief Executive Officer, NPCI.

NPCI had introduced RuPay enabled ATM cards in June, 2011. With two lakh ATM cards already in the market, on March 26, 2012 it launched debit cards, which can be used in ATMs as well as different point of sales (PoS). So far, Many PSU banks and private banks such as Axis Bank have joined the network of RuPay debit cards. Also, NPCI is in talks with ICICI and HDFC.  Together these two entities own more than half of India’s 6 lakh total PoS terminals. At present, RuPay is accepted in 2.10 lakh PoS terminals enabled by Axis Bank and SBI.

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