India's Payments Push is Cutting Out Visa and Mastercard

India's homegrown digital payments ecosystem, anchored by two systems, is challenging Visa and Mastercard's dominance in the world's most populous nation. The backbone is UPI, a nine-year-old bank-to-bank payment network that processes over 13 billion monthly transactions through QR codes and phone numbers, accounting for 71% of all transactions and 36% of consumer spending, according to Bernstein. RuPay, India's domestic card network, has leveraged its exclusive right to process credit card transactions through UPI to double its volume to $7.43 billion in fiscal 2025's first seven months. It now represents 28% of credit card transactions, up from 10% last year. Small merchants are adopting the system as RuPay only charges fees on transactions above $23.3. India's central bank has also mandated banks let customers choose their card network, ending exclusive deals with global providers.

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