90% of the time when anyone uses their credit card, they will be using the services of Visa or Mastercard. Whenever 'plastic money' is used at ATMs, malls or for online payments, banks have to pay facilitation fees to these giants for the processing of such transactions.
Well, these two American heavyweights may soon be facing a new competitor. IndiaPay, a new government backed payment processing platform will be launched in the next two years. This new service will help bring down transaction costs significantly. Its development is also being promoted by major Indian and foreign banks in India, as well as the banking regulator. Currently, around 40 m credit and debit cards are in circulation in India. This is only set to boom in the next few years. So, it looks like 'Visa Power' and 'for everything else there is Mastercard' will soon be replaced by a new 'desi' flavor.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment