Rupay continues its winning run in the economy
Have you ever made an online payment? Have you ever felt the pinch of high transaction charges? If so, you are not alone. For example, international payment gateways like Visa and MasterCard charge high transaction fees. Further, in the case of Visa and MasterCard, banks pay a certain charge on joining the foreign payment gateway network. On the other hand, Rupay Card brings about a simplified payment transaction system in India.
Launched in the year 2012 by the National Payments Corporation of India Ltd(NPCI), Rupay has revolutionized the payment ecosystem in the country with low transaction costs, nil joining fees, etc.
In this blog, you will get answers to all your questions on the Rupay Card.
1. What is Rupay Card?
Rupay Card is an Indian variant of the card payment scheme as compared to international players like Visa and Mastercard. Introduced by the National Payments Corporation of India (NPCI) in the year 2012, Rupay is used for primarily domestic payments.
2. Features of Rupay
- Inbuilt insurance coverage
- Direct link with government schemes like Pradhan Mantri Jan Dhan Yojana
- Regular cashback and merchant service benefits like fuel discounts
- Free access to airport lounges
3. How to apply for a Rupay Card?
To avail a Rupay card, one needs to submit one’s id proof cum address proof along with two passport size photographs. All the public, private, regional cum cooperative banks issue Rupay cards in India. A form fill up at one’s branch along with the KYC requirements is the prerequisite for a Rupay card.
4. What are the transaction costs in Rupay?
As compared to international counterparts, Rupay comes with low transaction charges. For example, for a bank transaction of Rs. 2000, if Rupay charges Rs. 2.50, international payment systems charge Rs. 3.50.
5. Difference between Rupay Cards and international cards?
- Transaction cost: As compared to international cards, Rupay comes with low operational costs.
- Joining fees: There is a quarterly fee to be paid for joining the international card network as compared to nil in the case of Rupay.
- Security: Rupay is comparatively safer due to the limitation of its operation to India
- Bank Network: Unlike Rupay, the international card network does not include small banks like rural and cooperative banks within its network.
- International acceptance: Rupay is only acceptable within India as compared to Visa and Mastercard which is accepted internationally.
6. What are the Security features of Rupay?
While using Rupay for a transaction, authentication happens with the entry of an OTP sent to the registered mobile number. Further, there is 256-bit encryption rendering Rupay difficult to hack.
7. Benefits of Rupay
- Accidental insurance coverage
- Low cost, easily accessible by people
- Direct link with government schemes to avail added benefits
- Faster bank transactions
- Increases the popularity of digital payments in the Indian economy.
8. What are the variants of Rupay Cards?
On a higher level, Rupay can be classified as Credit, Debit and Pre-paid cards.
Based on the transaction limits, Rupay Credit card can be further classified as:
(a)Rupay Classic Credit Card: With an accidental insurance coverage up to Rs. 1 lakh
(b)Rupay Platinum Credit Card: With an accidental insurance coverage up to Rs. 2 lakh
(c)Rupay Select Credit Card: With an accidental insurance coverage up to Rs. 5 lakh
On the whole, Rupay continues its winning run in the Indian economy. Interestingly, post-2016 demonetization, the demand for digital payments and Rupay is increasing on a commensurate basis.
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YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company has developed one of India’s most advanced AI-driven recurring payments platforms bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in