What Is RuPay and How It Is Revolutionizing Digital Payments in India

RuPay is a digital payment system that's changing the game in India. It's a card scheme that allows users to make transactions online and offline, just like a credit or debit card.

RuPay was launched in 2012 by the National Payments Corporation of India (NPCI), with the goal of promoting digital payments in the country. The system has since gained popularity, with over 900 million cards issued so far.

RuPay cards are accepted at over 1.5 million merchant locations across India, making it a convenient option for everyday transactions.

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RuPay is a non-profit payment company that was created by the Indian Banks' Association in 2009 at the request of the Reserve Bank of India.

The company was tasked with designing an indigenous payment card, which was tentatively called "India Pay" before being renamed RuPay.

The name RuPay is a portmanteau of the words rupee and payment, chosen to avoid naming conflicts with other financial institutions.

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The logo of RuPay features colours that allude to the tricolour flag of India.

RuPay was conceived as an alternative to Mastercard and Visa, aiming to consolidate and integrate various payment systems in India.

Indian banks were bearing high costs for affiliation and connection with international payment systems like Visa and Mastercard, which is why RuPay was created.

RuPay was launched in India on 8 May 2014 by the then President of India, Pranab Mukherjee.

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RuPay is a mediator between the customer and the merchant, facilitating payments through its network. The RuPay Payment Network receives payment requests from the merchant's Point Of Scale (POS) system.

Here's how it works: the customer's bank authorizes the payment if there are sufficient funds in the account and the correct PIN is entered. The payment is then credited to the seller's bank account through the RuPay network.

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RuPay has come a long way since its launch in March 2012. It was launched by the National Payments Corporation of India (NPCI) to provide a domestic card payment network for India.

RuPay was dedicated to the nation by President Shri Pranab Mukherjee in May 2014. This marked a significant milestone in the journey of RuPay.

In June 2013, RuPay Pay Secure went live in India, providing an additional layer of security for transactions. This was a major step forward in making RuPay a secure and reliable payment option.

Here's a brief timeline of RuPay's journey:

Payment networks act as mediators between customers and merchants, facilitating transactions with ease.

The RuPay Payment Network is a great example of this, where the customer's request is sent to their bank by the merchant's Point Of Sale (POS) system through the RuPay network.

RuPay's network is designed to handle transactions efficiently, with the customer's bank authorizing payments if there are sufficient funds in their account and the correct PIN is entered.

The payment is then credited to the merchant's bank account through the RuPay network, making the process seamless for both parties.

In the case of RuPay, the customer's bank verifies the transaction and ensures that the customer has sufficient funds in their account before authorizing the payment.

This process is crucial in preventing unauthorized transactions and ensuring that customers are protected in case of any discrepancies.

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RuPay On-The-Go is an interoperable, open-loop contactless solution that's available on smartwatches and other personal electronic accessories, making it unnecessary to carry a physical card.

This innovative feature was launched by NPCI on the eve of Global Fintech Festival 2021, allowing users to make tap-and-pay transactions easily.

RuPay On-The-Go supports National Common Mobility Card (NCMC) technology, enabling users to pay at various retail sites and public transportation hubs, such as bus stops, metro stations, and parking lots.

Users can choose between contactless purchases and monthly passes on the device, as well as handle transportation concessions.

A PIN is required to conduct transactions over ₹5,000, whereas transactions under this amount can be performed without one.

A limited number of guests were able to purchase a special wristband and other items for the playoffs and final of the 2024 Indian Premier League, which was part of a partnership between NPCI and Tata.

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The special wristband was from the "RuPay On-The-Go" series and served as a contactless payment method after the cricketing event, in addition to providing seamless access control during the event.

At the Global Fintech Fest 2024, Airtel Payments Bank, in collaboration with Noise and NPCI, launched a smartwatch that incorporates a RuPay chip embedded in the dial, enabling direct payments.

The NPCI Tokenisation System was launched on 21 October 2021 to help keep RuPay card details secure.

This system allows customers, merchants, and banks to share a unique token reference ID number instead of actual card details for transactions, reducing the risk of identity theft and hacks.

On 6 December 2021, PayPhi became the first digital payment platform in the country to officially certify for the RuPay Tokenisation System.

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RuPay issues debit cards in three variants – Classic, Platinum, and Select, each with its own set of features and benefits. The Classic variant offers basic features and acceptance at almost all merchants in India.

The Platinum variant provides all the features of the Classic variant, plus more offers and benefits such as airport lounge access and comprehensive insurance coverage of up to ₹2,00,000. RuPay Select is the most premium variant of a card, offering curated benefits under one package, independent of bank partnerships.

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RuPay has made contactless payments a reality with its innovative prepaid cards. These cards can be used to make purchases without the need for physical contact, making transactions faster and more convenient.

The Sodexo Multi-Benefit Pass, launched in partnership with RuPay in May 2019, contains a magnetic stripe that allows users to pay for meal benefits, as well as a chip that enables contactless payments through the RuPay network.

Kochi1, a RuPay prepaid smart card rolled out by Kochi Metro Rail Ltd (KMRL) with the help of the Axis Bank on 2 March 2019, became the first inter-modal transit card when its usage was extended to private buses with additional services including parking solutions in near future. This card is a great example of how RuPay's contactless payments can be used in a variety of settings.

MobiKwik launched a RuPay Prepaid card in collaboration with NPCI and Axis Bank on 12 November 2021, which also supports contactless payments.

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BharatQR is an integrated interoperable QR code based payment system developed by NPCI in collaboration with Mastercard, and Visa.

It was launched in September 2016, providing a common interface between RuPay, Mastercard, Visa, and American Express.

This system facilitates users to transfer their money from one source to another without the need of physical cards.

The money transferred through BharatQR is received directly in the user's linked bank account using IMPS.

BharatQR is supported on both Android and iOS devices.

Bijlipay, an end to end digital payment solutions company, is the first Indian Point-of-Sale (PoS) devices providing company to enable Bharat QR code on the screens of its POS machines.

According to RBI, the Bharat QR Code is the world's first inter-operable payment acceptance solution.

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E-Com is a payment gateway that allows RuPay card holders to make online transactions with ease. It supports one click payments, making transactions faster and more convenient.

RuPay E-com offers additional payment options such as subscription payments and EMI, giving users more flexibility when making online purchases.

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Nth Rewards is a loyalty benefits platform operated by the NPCI that enables corporate clients to sponsor rewards for RuPay card holders.

The platform allows corporate clients to offer rewards to RuPay card holders, which can be a great way to incentivize customers and build loyalty.

Nth Rewards is specifically designed for RuPay card holders, making it a unique feature of the RuPay ecosystem.

This feature can be particularly useful for businesses looking to reward their customers and build a loyal customer base.

By sponsoring rewards through Nth Rewards, corporate clients can offer their customers a tangible benefit that can be redeemed for rewards.

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RuPay issues debit cards in three variants: Classic, Platinum, and Select. The Classic variant is the standard RuPay-branded card, offering minimum features such as acceptance at almost all merchants in India.

The Classic variant offers benefits in categories like dining, travel, pharmacy, lifestyle, cosmetics, retails, shopping, and jewelry, but it does not provide airport lounge access. RuPay's middle tier offering, Platinum, provides all the features of Classic, plus more offers and benefits.

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Platinum cards offer comprehensive insurance coverage of up to ₹2,00,000 and various other merchant offers. In 2020, NPCI launched the RuPay Select card, targeting more affluent customers.

RuPay Select is the most premium variant of a card issued by RuPay, independent of its issuing bank, and forms partnerships with various businesses to provide card-specific benefits. Under RuPay Select, all benefits are curated under one package, independent of bank partnerships.

As of July 2018, RuPay cards have been issued by most banks across India, including cooperative banks and regional rural banks.

The Combo feature of RuPay cards is quite impressive.

The Union Bank of India launched the RuPay Combo Debit Cum Credit Card in November 2018, the first RuPay card that facilitates both debit and credit transactions through a single card.

This card has 2 EMVs and 2 magnetic stripes, making it a convenient option for users.

RuPay is widely accepted at almost all ATMs across India. It was launched by NPCI on 21 June 2013, enabling card holders to make online payments through RuPay PaySecure.

Over 1,158 banks have issued 603.6 million RuPay cards till November 2020. PayPal supports the RuPay card system, making it a convenient option for online transactions.

RuPay cards are accepted at popular online shopping websites, including Amazon, which accepts all RuPay debit cards, and some RuPay credit cards issued by select banks.

RuPay cards are widely accepted at almost all ATMs across India.

In fact, over 1,158 banks have issued a staggering 603.6 million RuPay cards as of November 2020. This is a testament to the widespread adoption of RuPay in India.

You can use RuPay cards to make online payments, thanks to RuPay PaySecure, which was launched by NPCI on June 21, 2013.

Many popular online shopping websites and apps in India accept RuPay cards, including Amazon, which accepts all RuPay debit cards and some RuPay credit cards issued by select banks.

Apple also accepts RuPay debit and credit cards on the App Store and iTunes Store, starting from July 2021. However, RuPay cards are not yet accepted on Google Play for making purchases in apps and games.

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RuPay has made a significant impact globally, with its cards now accepted in 185 countries. This is a remarkable achievement, considering the cards were first issued in 2014.

The NPCI, the issuer of RuPay cards, has partnered with several international players to enhance its global acceptance. Discover Financial Services, for instance, has been a strategic partner since 2012, enabling RuPay Global Cards to utilize Discover, Diners Club International, and PULSE networks for international purchases and cash access.

RuPay cards are now accepted by over 42.4 million POS terminals and 1.90 million ATMs worldwide. This is a testament to the growing popularity of digital payments in India and the efforts of NPCI to expand its reach globally.

RuPay has also launched a co-branded card with JCB, which offers special cashback programs for POS transactions outside India. This card is a great option for travelers, providing additional services like in-city JCB Lounges and round-the-year merchant promotions.

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Here are some key statistics about RuPay's global presence:

RuPay's partnerships with international payment networks have been instrumental in its global growth. Some of its notable agreements include those with Discover, JCB, NETS, UnionPay, BC Card, Elo, and DinaCard.