India Banking Push Spurs RuPay Growth (Sept. 16, 2014)
India’s RuPay national payments network is growing fast, bolstered by a government drive to expand banking services and move the country’s economy away from cash. Formed in 2012 by a group of 10 Indian and foreign banks, RuPay currently offers only debit cards and currently accounts for just 1.5 percent of the daily card transactions at Indian retailers. But the company expects to increase its footprint substantially in the coming months. The number of RuPay cardholders has more than doubled from 23 million at the end of July, according to a Reuters report—and that number is expected to reach 160 million by March. Much of the growth will be fueled by the Indian government’s financial inclusion initiative, launched in August. Under the plan, Indians who open a bank account for the first time will automatically receive a RuPay debit card. The company also plans to launch RuPay cards that will be accepted overseas through a partnership with Discover Financial Services and is in talks with Japanese card network JCB about a potential partnership, according to Reuters.
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