Visa and MasterCard’s FOMO

Demonetisation jolted the two card networks into action so much so they are looking at bringing a UPI competitor. The future for them never looked brighter in India. But the more things look different, the more they seem the same

Visa and Mastercard are in talks with WhatsApp and Google for introducing card-based payments that will compete with UPI

Demonetisation sped up the rate of growth for the card networks

Growth in debit card and credit card transactions have belied the expectations of the card networks

The networks are investing in tokenisation, QR code, contactless cards - but they will mostly remain niche

The Fear Of Missing Out or FOMO possibly best describes the American card network behemoths Visa and MasterCard’s position in India. The two networks are attempting to bring a competitor to Unified Payments Interface (UPI). UPI is a mode of payment that completely removes the need for networks like MasterCard and Visa. It is also currently the fastest payment system, surging ahead month-on-month. In FY18, UPI recorded nearly a billion transactions. The Ken has learnt that both the card companies are in talks with Google and WhatsApp to integrate a card-based peer-to-peer payment system.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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