The news: The Reserve Bank of India is reportedly drawing up plans to link credit cards issued by Visa and Mastercard to the Unified Payments Interface (UPI), industry executives aware of the matter told The Morning Context.
The central bank will make a decision before April, two of the executives said.
The background: The UPI, India’s mobile bank-to-bank instant payments system, has become one of the country’s most popular payment methods since its 2016 launch and has helped spur strong digital payments growth.
What’s in it for Visa and Mastercard? Connecting to the UPI would be a huge opportunity for Visa and Mastercard.
Visa and Mastercard have faced regulatory challenges in India regarding things like payment fees and data sharing. Linking to the UPI would let them bulk up their presence in the market.
The bigger picture: The change would also have implications for banks and the UPI itself.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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