Money & Banking

BHIM UPI, RuPay swipe Mastercard, Visa

Shishir Sinha New Delhi | Updated on November 09, 2018 Published on November 09, 2018

Home-grown payment systems corner over 60% of digital transactions

India’s own Bharat Interface for Money (BHIM) and RuPay cards have garnered over 60 per cent market share of the digital transactions business, pushing back global giants such as Mastercard and Visa.

BHIM is a UPI-based payment interface that allows real-time fund transfer using a single identity, typically a mobile number or a name. Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI-regulated entity. UPI is built over the IMPS (Immediate Payment Service) infrastructure and allows for instant transfer of money between any two parties’ bank accounts. RuPay is a card payment mechanism just like Mastercard or Visa. Both these payment systems have been developed indigenously.


According to NPCI, during the first seven months (April-October) of this fiscal, over 600 crore transactions took place through debit, credit and prepaid cards along with BHIM UPI. Of this, BHIM UPI accounted for about 300 crore, and RuPay cards for over 76 crore. Similarly, in terms of value, out of over ₹18-lakh crore, BHIM UPI and RuPay accounted for over ₹11.7-lakh crore and ₹72,950 crore, respectively.

“Today, Visa and Mastercard are losing market share in India to indigenously developed payment system of UPI and RuPay Card whose share have reached 65 per cent of the payments done through debit and credit cards,” Finance Minister Arun Jaitley wrote in a blog on Thursday.

NPIC said that the BHIM UPI platform is different from conventional product lines that have dominated conventional banking system for long. Now, these have been replaced with Application Programming Interface (API), which is in use through UPI. BHIM UPI has over 5.5 crore unique users. “A glimpse of open banking strategy and its success can be seen in BHIM UPI that have elevated interoperability to a new level by offering choice on PSP (Payment Service Provider) and banks too,” it added.

Published on November 09, 2018
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