About 25 per cent of all new credit card issuances are happening on the RuPay network, according to Praveena Rai, COO, NPCI (National Payments Corporation of India).
“Cards in force are growing fast, driven by the innovative product suite. Volume growth is multiplying; it’s more than doubling,” Rai said on the sidelines of the launch of the SBI Paytm credit card on the RuPay network.
Even though 52 per cent of customers on the UPI network are credit active, only 3–10 per cent use credit cards. The NPCI said that of the over 30 crore UPI users, 2.5–3.0 crore are credit card holders.
Huge opportunity
This provides NPCI with a huge opportunity to grow its credit card portfolio and market share now that the RuPay network has been integrated with UPI, Rai said, adding “there are a number of programmes already launched on RuPay and there are many in the pipeline,” including more tie-ups for co-branded cards.
NPCI’s RuPay has a 35 per cent market share in the debit card market in terms of volume, 30 per cent in terms of the value of card spends, and 69 per cent in terms of cards in force. The thrust on credit cards began about 3–4 years ago with a focus on technology and innovation, local market requirements, product differentiation, and building brand value.
“We told ourselves that unless we are building the stature of RuPay on the credit side, we can’t lay claim to the fact that RuPay is India’s indigenous card network, and for that, we really changed gears on credit,” Rai said at the event.
The credit card portfolio has seen a spike since the linking of the RuPay network to UPI, she said, adding that this card will “emerge as a keystone credit solution” as it offers the convenience of acceptance of credit cards across all UPI points with card benefits such as rewards and cashbacks.
“What NPCI has done phenomenally well with UPI and QR is incredible. RuPay credit card riding is the game changer here,” said Nalin Bansal, Chief of Corporate and Fintech Relationships and Key Initiatives at NPCI.
The SBI Paytm card, originally launched in November 2020, will be issued instantaneously and will not require tokenisation at merchant touch points as the UPI ID will become the de facto token.
Under the RuPay launch, it will offer benefits up to ₹75,000 with a complimentary Paytm First and OTT platform membership, flight ticket discounts, rewards, savings, and cash backs.
