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.
Eyes wide open
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