Read what Mastercard CFO has to say about the UPI ecosystem of India – Times of India


Unified Payments Interface (UPI) was introduced in India in 2016. Since then, the payment system has revolutionised the payment ecosystem of the country. UPI has not only made it easier to make payments and transfers but has also played a key role in digital adoption in the country.
According to the National Payments Corporation of India (NPCI), UPI recorded more than 10 billion transactions for about Rs 15,18,456 crore in August. Currently, UPI has a user base of more than 260 million in the country and possibilities to expand the network to other countries like the US, UAE and Singapore are now being explored.
Mastercard, which is the world’s second-largest payments network, has criticised India’s UPI system. The company’s executive said that UPI is a loss-making proposition for the players in the ecosystem even as it is driving digitisation in the country.
In a statement to investors at the UBS Fintech Leaders Conference, Sachin Mehra, chief financial officer (CFO) at Mastercard raised his concerns against UPI (reported by Economic Times). However, the company mentioned that India continues to be a very important market and it will continue to compete despite the challenge.
Earlier this week, Mastercard also appointed former State Bank of India chief Rajnish Kumar as the chairman of its Indian business.
What Mastercard CFO said about UPI
Mehra said: “UPI is fantastic at many levels in terms of what it has done to create digitisation in the economy. It is an incredibly painful experience for ecosystem participants, who all end up losing money as part of that proposition. We continue to see good growth on our debit and credit proposition, and we see there to be a lot of potential on a going-forward basis there. We want to compete, where we can do so while actually making sure that the ecosystem makes money. India is a little challenged in that regard when you have the likes of UPI.”
As per a report by Bernstein, “Early this year, India’s UPI was linked with Singapore’s PayNow, allowing Indian users to remit up to SGD 1,000 per day. The core focus area in expansion abroad has been the non-resident Indians, as wider expansion in markets like (the) US faces several challenges from lobbying by card companies like Visa and Mastercard.”
Meanwhile, another global payments technology firm, Mastercard’s rival Visa said that instant payment platform Pix in Brazil and UPI in India brought more people into the formal banking system. These platforms helped as the markets had low levels of penetration of banking or the card business compared to the UK and the US.

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