How about getting a taste of one’s own medicine? Visa and Mastercard have dominated the card space for ages now. One is sure some players wanting to enter the space would have been threatened by these two players. As this blog has pointed in the past, how Rupay has emerged as a competitor for the two from nowhere. Being a state backed initiative, Rupay’s charges are much lower.
The Rupay card has become govt’s main way to push financial inclusion. This is irritating the two major players:
US card companies MasterCard and Visa have complained of an invisible mandate to keep them out of Jan Dhan Yojana, the government’s financial inclusion programme, and demanded a level playing field with government-backed card issuer RuPay. Stung by a sharp rise in cards issued by RuPay, thanks to Jan Dhan, MasterCard and Visa say they have asked Reserve Bank and the government to consider their services, which are cheaper than that of the local card issuer.
Not sure what the mechanics are and how true are these allegations. Competition is preferred any day and if govt is not allowing it, it is a mistake. Competition keeps you on toes and one does not wish Rupay to become rusty.
It is really interesting how a state driven project (that too in the field of finance!!) can undermine MNC giants at their own game….