Archive · 29 Oct 2025
RuPay Gains Market Share from Global Rivals on UPI Integration
Imagine you have different ways to pay for things with a card, like using Visa or Mastercard.
In India, there's a local card system called RuPay.
Recently, RuPay got a big boost because it can be used with a popular payment app called UPI.
This is like giving RuPay a superpower because UPI is accepted almost everywhere, even more than regular credit card machines.
Because of this, RuPay is being used for more and more credit card payments, even though Visa and Mastercard have been around longer.
Some people are using RuPay cards more for smaller payments, and the total amount spent on them is still growing.
But for many people, especially those new to credit cards, RuPay offers an easy way to pay using UPI.
Homegrown credit card network RuPay has gained significant market share from Visa, Mastercard, and Amex in India.
This growth is largely attributed to RuPay's exclusive integration with India's Unified Payments Interface (UPI) network.
RuPay credit card transactions on UPI account for 38% of all credit card transactions by volume in India, according to a Bernstein Securities report.
The wider acceptance of UPI and lower transaction costs for merchants provide a distinct advantage for RuPay cards.
While volume is increasing, the value of RuPay credit card transactions still trails behind global competitors, indicating potential for further growth.
- Who
- Homegrown credit card network RuPay, competing against global networks like Visa, Mastercard, and American Express.
- What
- RuPay has significantly increased its market share in credit card transactions by leveraging its exclusive access to India's Unified Payments Interface (UPI) network.
- When
- The Bernstein report data cited is from October 27, with fiscal year data provided for FY24 and up to October 2024 for FY25.
- Where
- India.
- Why
- RuPay's growth is driven by its integration with UPI, which offers a wider acceptance universe than traditional credit card point-of-sale machines and lower transaction costs for merchants.
RuPay's Strengths
Challenges and Limitations
Merchant Acceptance and Cost
RuPay's Strengths
RuPay benefits from UPI's widespread merchant acceptance, which is significantly larger than traditional credit card POS terminals. Additionally, RuPay credit card UPI transactions up to ₹2,000 are free of Merchant Discount Rate (MDR) charges, and lower MDR applies for transactions above this threshold, particularly for smaller merchants.
Challenges and Limitations
Despite high transaction volumes, the value of RuPay credit card transactions still lags behind competitors, indicating that customers may be using it for smaller purchases. Penetrating the established stronghold of global card networks with their long-standing bank relationships remains a significant challenge.
Customer Adoption and Spending Habits
RuPay's Strengths
RuPay credit cards have seen higher adoption among entry-level and middle-income users who value simplicity and seamless UPI-based credit payments. Customers with RuPay credit cards linked to UPI tend to spend about 20% more than with regular credit cards.
Challenges and Limitations
While RuPay credit card issuances are increasing, overall spending has not scaled at the same pace. A significant portion of new RuPay cards are add-ons for existing users rather than first-time credit customers, which contributes to the gap between issuance and spend levels.
- RuPay Credit Card Transactions on UPI (Oct 27 Report)
- 38% of all credit card transactions by volume, 8% by value.
- RuPay Credit Card Transactions as % of Total (FY24)
- 10% by volume, 1.8% by value.
- RuPay Credit Card Transactions as % of Total (FY25 YTD)
- 28% by volume, 5.3% by value.
- RuPay Credit Card UPI Payments (FY24)
- 362.9 million transactions worth ₹33,439.2 crore.
- RuPay Credit Card UPI Payments (April-Oct FY25)
- 750 million transactions worth ₹63,825.8 crore.
- Total Credit Cards in India (End-August)
- Over 112 million.
- UPI Merchants vs. Credit Card POS Devices
- Over 50 million UPI merchants vs. less than 10 million POS devices.