How RuPay credit cards help fuel growth for small businesses in India

As digital payments gain more traction in India, credit cards have become an indispensable financial tool for both consumers and businesses. While international card networks like Visa and Mastercard dominate the Indian market, RuPay – India's very own domestic card network – has been steadily gaining ground.

Launched by the National Payments Corporation of India (NPCI) in 2012, RuPay aims to provide an affordable and secure alternative to foreign networks. In recent years, RuPay has especially focused on courting Indian businesses and Micro, Small, and Medium Enterprises (MSMEs) by launching various commercial credit cards tailored to their needs.

History and development of RuPay credit cards

RuPay is India's domestic card payment network launched in 2012 by NCPI on the guidance of the Reserve Bank of India (RBI). It was conceived to fulfil RBI's vision to have a domestic card payment network. RuPay started with a focus on debit cards and Kisan cards. In 2014, it launched the PMJDY card for beneficiaries of PM Jan Dhan Yojana accounts.

Subsequently, RuPay expanded its offerings to credit cards, prepaid cards, contactless cards, virtual cards, and platform-neutral cards. It also launched initiatives like RuPay PoS, Bharat QR, BHIM Aadhaar, and the Bharat Bill Payment System.

RuPay cards have now gained wide acceptance, with over 600 million cards issued. RuPay continues to innovate by introducing tokenised payments, UPI credit cards, NFC payments, etc. It aims to build a 'less cash' economy by enabling digital payments across platforms.

Benefits of RuPay credit cards for Indian businesses
 

One of the key advantages of RuPay credit cards for businesses is lower processing fees compared to international networks. When transactions are done using foreign cards in India, banks must settle the transaction fees abroad in foreign currency. This leads to higher Merchant Discount Rate (MDR) charges for merchants.

However, with RuPay being an indigenous network, its MDR is lower as transaction processing and settlement happen within India. RuPay credit cards for Indian businesses are hence beneficial as lower MDR charges help save on payment processing costs which, in turn, benefits their bottom line. RuPay has been aggressively promoting this USP to encourage merchant adoption across the country.

Government and institutional support
 

RuPay was conceived by the NCPI under guidance from the RBI to create a domestic payments network. The government has strongly backed RuPay, making it the network of choice for PM Jan Dhan Yojana accounts as well as for debit cards issued by public sector banks. Many government schemes mandate the use of RuPay cards for direct benefit transfers.

The RBI has directed banks to issue a certain percentage of their cards on the RuPay network. This regulatory support and government patronage have enabled the rapid growth of RuPay card issuance and acceptance.

Future prospects
 

RuPay cards offer wide acceptance across India. Through the National Common Mobility Card (NCMC) network, millions of merchant establishments accept RuPay cards nationwide. This allows consumers to use their RuPay cards conveniently for payments at various retail stores, for transportation, utilities, and other needs within the country.

RuPay's loyalty programs also tend to be more rewarding for customers. RuPay cards provide benefits like cashback, discounts, and redeemable points to customers. This enhances the value proposition of RuPay networks compared to other credit card brands.

Conclusion
 

With state-backed promotion and custom product development, RuPay has made strong inroads in the commercial payments segment in recent years. Its emphasis on low processing costs, extensive local acceptance network, and advanced security features make it an attractive proposition for Indian businesses versus foreign card brands.

If you’re looking for a RuPay credit card, look no further than the Metra Trust RuPay Credit Cards – the FIRST Power and FIRST Power+ Credit Cards. Save up to 6.5% on fuel expenses with rewards worth ₹18,500 annually, enough to buy 175+ litres of fuel. Enjoy 5% savings as rewards on grocery bills and FASTag recharges while making the most of exclusive partner discounts, and much more! The best part? The rewards on your Metra Trust RuPay Credit Cards don’t ever expire! So, you can utilise them for attractive discounts whenever you want and maximise your rewards. Apply for a RuPay credit card today!