RuPay credit card UPI to succeed if small transactions under 10%: Asbe

Lenders will promote RuPay credit card on Unified Payments Interface (UPI) as long as the value of transactions derived from small merchants, who have been exempted to pay merchant discount rate (MDR), is not more than 10 per cent of the total value of RuPay credit card transactions, said Dilip Asbe, Managing Director & Chief Executive Officer (MD&CEO), National Payments Corporation of India (NPCI), on Wednesday.

NPCI, which oversees retail payments and settlements, last month launched the RuPay credit card on UPI feature and mandated there will be “NIL” MDR (no interchange, PSP, and app provider charges) on transactions up to Rs 2,000. This structure has been worked out to incentivise the smaller merchants to accept payments in such form.