National

Mastercard to invest $750 m in India by 2020

K.R.Srivats New Delhi | Updated on January 08, 2018 Published on October 05, 2017

Ajay Banga, CEO, Mastercard, with Andhra Pradesh Chief Minister Chandrababu Naidu, after the two signed an MoU in New Delhi on Thursday. – Kamal Narang

Global payments company Mastercard plans to invest another $750 million-odd in India by 2020 to fuel its growth in the world’s second-fastest growing large economy.

This money will be used for organic growth and acquisitions, and in activities such as cybersecurity, mobile and digital payments, smart cities and wallets, said Ajaypal S Banga, President and CEO, Mastercard said here on Thursday.

The planned investment of about $750 million comes on top of the $550 million that Mastercard invested in India over the last three years.

About 14 per cent of Mastercard’s global employee base of 15,000 is based in India and most of them are technologists developing mobile technology and cyber security solutions. “There are also a bunch of people doing data analytics and advanced data analytics,” he said. As on date, Mastercard has offices in Vadodara, Gurugram and Pune.

Mastercard has been using the acquisition route to grow its business in India. This includes the 2014 buy of software solutions and payments management firm ElectraCard Services (ECS).

MoU with AP

On Thursday, Mastercard signed a Memorandum of Understanding (MoU) with Andhra Pradesh to digitally transform the State’s delivery of services to people, especially farmers, and drive financial inclusion.

The MoU, which will be valid for two years, was signed between Andhra Pradesh Chief Minister N Chandrababu Naidu and Mastercard’s Banga. The MoU will help Andhra Pradesh create a “fintech valley” of global repute at Vizag, Naidu told reporters here.

“We will work to take fintech to the logical conclusion. Step by step we will create the ecosystem to help the economy grow at a faster pace,” the CM said.

Asked if his government favoured adoption of digital currency, Naidu said such options should be cost-effective, and that it would solve so many problems.

Srivats.kr@thehindu.co.in

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Published on October 05, 2017
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