Rupay credit card payments through UPI hits the MDR speedbreaker
A large number of small and large merchants have requested their banks to disable payments via Rupay credit cards on UPI as they are often forced to pay higher MDR than on other credit card transactions. Over the past four to five months, Rupay credit card transactions on UPI (Unified Payments Interface) have found favour with customers, as it brings credit card offers and rewards to the fast, convenient, and ubiquitous UPI, along with interest-free credit for 45-50 days. Currently, only Rupay credit cards can be linked with UPI. From around Rs 50-60 crore every day in the month of May, the transaction value of Rupay on UPI has gone up to Rs 100 crore daily in October, often touching Rs 150-200 crore per day on weekends, according to sources aware of the developments. From less than 10 percent a few months ago, Rupay’s share of new credit card issuances has grown to 25 percent, which is roughly four lakhs every month, says the National Payments Corporation of India (NPCI),...