Visa complains to U.S. govt regarding India’s RuPay promotion

Date: 2021-11-29   Author: Pankaj Singh  Category: #news

Visa complains to U.S. govt regarding India’s RuPay promotion

American financial services company, Visa Inc., has reportedly complained to the U.S. government about India’s formal and informal promotion of RuPay, Visa’s local payments rival. As claimed by the U.S.-based company, the act of the Indian government threatens its position in a major market.

Sources cite that in public, Visa has downplayed concerns associated with the launch of RuPay. The domestic card enjoys support from Prime Minister Narendra Modi’s public lobbying, that has hailed the usage of local cards as similar to national service.

According to recent memos, Visa is concerned regarding India’s formal and informal policies that appear to favor NPCI’s business over other foreign and domestic electronic payments firms.

In a meeting conducted on 9th August 2021 between Katherine Tai, the U.S. Trade Representative (USTR), and company executives, comprising CEO Alfred Kelly, memos from the U.S. government depict Visa’s concerns associated with a level playing field in India.

It is to be noted that similar concerns were also privately raised by Mastercard Inc. Back in 2018, the company had lodged a complaint with the USTR stating that PM Modi was utilizing nationalism for the promotion of the local network.

For years, Modi has promoted RuPay, posing a challenge to Mastercard and Visa across the fast-growing payments industry. As per recent data, RuPay recorded around 63% of the country’s 952 million credit and debit cards as of November 2020, up from merely 15% in the year 2017.

In a 2018 speech, Modi depicted the utilization of RuPay as patriotic, stating that since everyone cannot go to the border for protecting the nation, people can make use of RuPay card for serving the nation.

While RuPay accounts for the majority of cards used in India, most transactions still go via Mastercard and Visa, given that most RuPay cards were simply issued by banks under the government’s financial inclusion program, according to industry sources.

Source credit: https://www.reuters.com/business/finance/exclusive-visa-complains-us-govt-about-india-backing-local-rival-rupay-2021-11-28/



About Author


Pankaj Singh linkdin-boxtwitter

Pankaj Singh

Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

Read More

Post Recommendents

Desulfurization and Denitrification Market Size | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2026

Author: Sachin Pashte

Global Desulfurization and Denitrification Market report focuses on the major drivers and restraints for the key players. It also provides granular analysis of the market share, segmentation, revenue forecasts and geographic regions of the market....


Superconducting Magnetic Energy Storage (SMES) Systems Market Comprehensive Analysis, Share, Growth Forecast from 2021 to 2026

Author: Sachin Pashte

The Global Superconducting Magnetic Energy Storage (SMES) Systems Market 2021 Research Report investigates the industry thoroughly and offers a complete study on Superconducting Magnetic Energy Storage (SMES) Systems volume, market Share, market T...


Antivirus Software Market Size Current and Future Industry Trends, 2021-2026

Author: Sachin Pashte

Global Antivirus Software Report offers market size, share, overview, segmentation by types, application, countries, key manufactures, cost analysis, industrial chain, sourcing strategy, downstream buyers, marketing strategy analysis, distributors...