Top 5 Benefits Of Using RuPay Credit Card

Benefits Of Using RuPay Credit Card

There was a time not too long ago when RuPay credit cards were barely an afterthought in India’s booming digital payments industry. Dwarfed by mighty global brands like Visa and Mastercard, humble RuPay cards were relegated to the sidelines.

My, how times have changed! Over the past decade, RuPay has scripted a remarkable turnaround tale. From a little-known also-ran, RuPay has catapulted to stardom, giving its mighty foreign rivals a run for their money.

This dramatic change in fortunes begs the question: What catapulted an obscure homegrown payment network into the big league? 

What made RuPay strike a chord with millions of Indian consumers when fancier foreign cards already existed?

As it turns out, RuPay cards are packed with a host of compelling advantages, custom-made for the needs of regular Indian shoppers, travelers, and businesses. The RuPay value proposition offers the perfect mix of fees, features, security, and payment technology that provides an edge compared to ordinary Visa and Mastercard options.

Let’s look at the top 5 compelling reasons why RuPay credit cards have gained widespread popularity and acceptance across India.

1. Affordable Fees That Save Money

One major area where RuPay credit cards score over rival options is the fee charged to merchants for transactions and services. RuPay has been able to negotiate affordable charges with partner banks, passing the savings down to merchants who accept RuPay cards.

This way, every time a customer uses a RuPay card for shopping, travel, or payments, the merchant pays less in transaction fees compared to accepting ordinary Visa or Mastercard transactions.

Here are some numbers that highlight the attractive fee structure of RuPay cards for merchants:

Transaction charges on RuPay average just 0.9%, far lower than the 2-3% charged by Visa and Mastercard networks. Every swipe or tap of a RuPay card saves the merchant some money.

RuPay does not charge any foreign currency conversion fees to merchants, unlike Visa and Mastercard, which levy conversion charges in the range of 3–5% when processing cross-border transactions.

The reason RuPay is able to offer such low charges to merchants is that it is India’s own domestic card network. This means RuPay cards are used only within India and do not involve dealing in foreign currencies.

The charges involved in RuPay transactions are negotiated solely between Indian banks and lenders without any third party outside the country.

By keeping the entire digital payments ecosystem within India, RuPay is able to pass down substantial savings to merchants who accept RuPay cards.

So if a merchant frequently processes credit card transactions for shopping, travel, internet payments, or phone recharges, the compound savings from lower merchant charges on RuPay transactions can be considerable.

Over months and years of accepting RuPay cards, the discounted fees result in substantial savings for merchants compared to accepting ordinary Visa or Mastercard options.

Key highlights

  • RuPay transaction fees are as low as 0.9% versus 2-3% for Visa and Mastercard.
  • Nil foreign currency conversion charges with RuPay
  • All transactions are localized within India, enabling lower charges.
  • Saves money with every payment and transaction.

2. Localized Technology for Indian Conditions

RuPay, being India’s domestic card network, has developed its technology infrastructure specifically for Indian conditions. This localized approach aims to provide a smooth payment experience across the country.

RuPay’s domestic network is designed to cater to the unique challenges and requirements of the Indian market, such as:

Ensuring connectivity and reliability in remote towns and rural areas.

Adapting to the diverse payment ecosystems and infrastructure across different regions in India.

Integrating with local banks, merchants, and payment systems to facilitate seamless transactions.

By focusing on building a technology infrastructure tailored to India’s needs, RuPay aims to provide a payment solution that understands and addresses the specific challenges faced by Indian consumers and businesses.

However, it is important to note that transaction speed and reliability can vary depending on various factors, such as the specific card issuer, the merchant’s payment gateway, and the network infrastructure in different locations.

As with any payment network, it is always advisable to choose a reliable card issuer and keep track of your transactions to ensure a smooth payment experience.

Key highlights

  • RuPay transaction speed is under 2 seconds, faster than Visa’s 5-7 seconds.
  • High uptime and reliable connectivity across India
  • Localized technology provides a fast, lag-free payment experience.
  • Lower failure rate, even in small towns and remote areas

3. Security Features Galore

With cybercrimes like hacking, skimming, and online fraud on the rise, security is a major priority for Indian consumers when choosing a credit card. We want our money and personal data to remain safe from misuse by shady entities.

Here’s where RuPay cards shine once again. They are loaded with advanced security protections designed to keep your information fully secure during transactions.

One of  the key safety features that make RuPay the safest credit card network in India are:

  • End-to-end encryption ensures no unauthorized access to card data while payments are processed. This prevents hacking attempts.

With your financial safety at the core of its offering, RuPay pulls out all the stops to provide rock-solid data security. Each time you use the card online or offline, advanced encryption and tokenization protocols swing into action to safeguard your money.

Key highlights

  • End-to-end encryption for robust data security
  • Tokenization to mask original card details during transactions
  • Auto-changing dynamic CVV adds another security layer.
  • A closed-loop system keeps data localized within India.

4. A Wide Range of Card Options

RuPay offers a diverse range of credit cards catering to various spending needs and lifestyles, similar to the co-branded cards offered by Visa and Mastercard.

RuPay has partnered with several banks and organizations to provide customized credit card options that offer specific benefits and rewards. Some examples include:

The IRCTC RuPay credit card, which offers rail travel privileges and savings for frequent train travelers.

  • ICICI Bank’s RuPay credit card, which provides additional e-commerce rewards and discounts for online shoppers.
  • Indian Bank’s RuPay card for teachers, which offers exclusive benefits tailored to their profession.

These co-branded cards are similar to the ones offered by Visa and Mastercard in partnership with various banks and organizations. For instance:

Visa has co-branded credit cards with airlines, such as the Air India Visa Card, which offers travel benefits and rewards.

Mastercard has partnered with e-commerce platforms, like the Amazon Pay Mastercard, which provides cashback and rewards for online shopping.

Both Visa and Mastercard also offer credit cards tailored to specific professions, such as the SBI Doctors Visa Card and the ICICI Bank Doctor’s Mastercard.

While RuPay, Visa, and Mastercard all provide a wide range of customized credit card options, the specific benefits and rewards may vary depending on the card issuer and the partnering organization.

Ultimately, the choice of a credit card depends on your individual spending habits, lifestyle, and the benefits that best suit your needs, regardless of the payment network.

Key highlights

  • Over 30 types of specialized RuPay credit cards for varied needs
  • IRCTC, ICICI, and Indian Bank co-brand cards for train travelers, shoppers, teachers, etc.
  • Allows you to pick a card that matches your usage patterns.
  • Targeted offerings with privileges for different Indian consumer segments

5. Light in Your Pocket

One of the key advantages of RuPay credit cards is their affordability, which makes India’s own payment network accessible to a wider range of consumers. RuPay offers budget-friendly fees and charges that are lighter on your pocket compared to expensive premium cards from other networks.

A notable feature of many RuPay credit cards is that they come with lifetime free options, which means you don’t have to pay any annual fees for the entire duration of holding the card. This is a significant advantage over many Visa and Mastercard credit cards, which often charge annual fees ranging from Rs. 500 to Rs. 5000 or more.

Some additional points on how RuPay cards save you money:

  • Even for RuPay cards that do charge annual fees, they typically start at just Rs. 500, which is still lower than the fees charged by many premium Visa and Mastercards.
  • Interest rates on revolving credit are around 2.5% per month with RuPay, compared to steeper 3-3.5% rates from rival card networks.

Together with discounted merchant charges and nil conversion fees, RuPay cards offer better overall value without digging deep into your savings account. The presence of lifetime free options and affordable pricing for other cards makes RuPay an attractive choice for Indian consumers across different income levels.

So along with rewards for shopping, travel, and payments, the easy affordability and lifetime free options make RuPay an obvious choice. For price-conscious Indian consumers seeking value, RuPay is hands-down one of the most pocket-friendly payment networks around.

Key highlights:

  • Lifetime free options available on many RuPay credit cards
  • Low annual fees for cards that do charge them—starting at just Rs. 500
  • Minimal 2.5% monthly interest rates on revolving credit
  • Affordable pricing suitable for Indian consumers across different income levels
  • Provides better overall value without high costs

The Road Ahead—What Does the Future Hold for RuPay?

With strong growth momentum behind it, thanks to the many advantages outlined above, RuPay seems poised to scale greater heights in the coming years. Let’s take a look at what the future holds for this made-in-India payment network brimming with potential.

Enhancing Digital Payments Infrastructure

As digital payments explode in India, RuPay aims to provide robust back-end infrastructure to enable smooth transactions between consumers, merchants, banks, fintech companies, and other entities.

Initiatives are underway to upgrade existing RuPay frameworks by integrating newer technologies like blockchain, data analytics, and artificial intelligence. Proprietary payment networks are also being developed to provide an alternative to VisaNet and Mastercard Network. The focus is on delivering higher uptime and reliability.

With data protection emerging as a key priority, RuPay continues to implement strict encryption standards and data localization guidelines as per Indian regulations. The aim is to keep customer information safe, secure, and localized within the boundaries of India.

Key highlights

  • Upgrading payment channels by integrating blockchain, analytics, and AI
  • Developing proprietary networks to rival VisaNet and Mastercard Network
  • Implementing robust data encryption and localization to protect customer privacy

Expanding Services

RuPay aims to expand beyond just payments to become a broader financial services ecosystem under the RuPay brand. There are plans to diversify into lending, investments, insurance, and other verticals.

As India increases credit penetration among small businesses and low-income groups, RuPay can offer customized lending solutions to drive financial inclusion among the unbanked population. Wealth management offerings can tap into the rising middle class and millennial segments.

Integration with India’s account aggregator framework is also underway. This will allow RuPay to seamlessly interface with banks, fintech firms, and third-party apps via open APIs. The aim is to deliver an integrated platform for personalized finance management services encompassing payments, investments, lending, and insurance.

Key highlights:

  • Venturing into the lending, insurance, and wealth management verticals
  • Offering customized credit products for financial inclusion
  • Integrating with the account aggregator framework for unified personal finance services

New Payment Instruments

While RuPay cards will remain the flagship payment instrument, the network plans to offer more options for tech-savvy consumers.

RuPay is developing contactless wearables like wristbands, key chains, and watches to enable tap-and-go convenience. Biometrically authenticated smart cards that allow fingerprint or facial recognition for payments are also in the pipeline.

For feature phone users, innovative solutions like Soundbox will enable offline digital payments by translating data into audio cues. Call centers and SMS-based PIN verification are other initiatives aimed at the next half-billion users.

With India’s Unified Payments Interface (UPI) expected to process over 4 billion annual transactions soon, RuPay aims for deeper integration with payment apps like BHIM, Google Pay, and PhonePe. The goal is omnipresence across diverse payment instruments.

Key highlights:

  • Contactless wearables like wristbands and watches for tap-and-go convenience
  • Biometric smart cards enabled by fingerprint or face recognition
  • Soundbox and SMS/call center PIN verification for feature phones
  • Deeper integration with UPI apps like BHIM, Google Pay, and PhonePe

Global Expansion

RuPay already has an acceptance network spanning 100 countries. But it aims to aggressively boost international circulation over the next few years.

Partnerships with other domestic payment networks like China’s UnionPay and Russia’s Mir Card will pave the way for RuPay’s increased visibility globally.

As more foreigners visit India for trade, healthcare, education, and tourism, RuPay wants to provide a homegrown payment alternative with worldwide acceptance. The goal is to match Visa and Mastercard in global coverage.

Key highlights:

  • Partnerships with domestic networks like UnionPay and Mir Card
  • Increasing visibility and circulation across 100+ countries
  • Offering internationally recognized RuPay cards to visitors in India
  • Expanding global coverage to match Visa and Mastercard

The Way Forward

To usher in the next wave of growth, RuPay must continue enhancing its technology, security, customer service, and value-added offerings. Adapting to local conditions across India’s towns and villages is equally important to drive financial inclusion.

Forging strategic global partnerships, integrating with open banking systems, implementing data analytics, and expanding services hold the key to RuPay’s future progress. If it can translate its blueprint into reality, RuPay has the potential to emerge as a serious rival to Visa and Mastercard globally in the long run.

With the digital payments space evolving swiftly, the road ahead is undoubtedly challenging. But by judiciously leveraging its advantages of speed, scale, security, and affordability, this homegrown network can progressively capture the market dominated by foreign card companies until now.

If customer centricity continues to be the guiding principle, the future looks bright for RuPay! Built specifically for India and Indians, RuPay seems poised for a long innings of sustained leadership and growth.

Bottom Line

Packed with advantages like discounted fees, tailored offerings, robust security, UPI integration, and global acceptance, it is easy to see why RuPay has emerged as the preferred payment network for millions of Indians today.

Though Visa and Mastercard enjoy wider visibility globally, RuPay cards make for a smart choice within India, spanning offline, online, mobile, and UPI transactions.

So if you are looking for a full-featured credit card that offers the winning combination of rewards, security, technology, and affordability, do check out the wide range of RuPay products! Made in India for India, these cards provide great overall value to regular shoppers, travelers, and businesses.