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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Debit Card Trends in the Asia-Pacific Region
In India, RuPay Cards Rule the Debit Market:
- In 2012, the NPCI introduced the RuPay debit card in India. Issued through most banks, RuPay can be used for in-person, digital and ATM activities.
- RuPay is intended to compete directly with Mastercard and Visa debit by offering free processing to merchants.
- Of the approxomately 840 million debit cards in India, about 500 million (60%) are RuPay branded.
- India’s abrupt withdrawal of cash and transition to electronic payments in 2016 led to dramatic growth of debit transactions and mobile wallets.
- The hallmarks of these debit wallets include QR code technology and low fees for merchants and consumers.
- Mercator anticipates continued but sluggish growth in debit card volumes in India.
Mercator Advisory Group released a new report titled Debit Card Trends in the Asia-Pacific Region and finds that debit card use in the region is far from monolithic. Countries such as Australia and Japan have some similarities to the North American debit market, with a high degree of financial inclusion and a long history of card use. In contrast, countries such as China, India and Indonesia have relied primarily on cash until very recently.
”We find some interesting trends in debit card adoption in each country. Those nations that have been primarily cash based societies are moving towards mobile based solutions supported by QR codes at the point of sale at an incredible pace. This approach also supports another trend; the preference for local networks with technology and data that never leave the country,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.