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Mastercard unhappy over PM Modi's promotion of Indian card network RuPay

Modi has publicly endorsed the indigenous card payment network, saying using RuPay was like serving the country as its transaction fee stays within India and could help build roads, schools and hospitals.

November 02, 2018 / 11:03 AM IST

Mastercard told the United States government in June that Prime Minister Narendra Modi was using nationalism to promote the use of a domestic payments network RuPay, and New Delhi's protectionist policies were hurting foreign payment companies, a document seen by Reuters showed.

Modi has in recent years backed India's homegrown payments network RuPay, whose rise has broken the dominance of US payment giants such as Mastercard and Visa. More than half of India's 1 billion debit and credit cards now go through the RuPay payment system, and that means companies such as Mastercard face an uphill task to expand rapidly in one of the world's biggest payments growth markets.

Modi has publicly endorsed the indigenous card payment network, saying using RuPay was like serving the country as its transaction fee stays within India and could help build roads, schools and hospitals.

In a written reference to Modi's stance, Mastercard told the Office of the United States Trade Representative (USTR) on June 21 that the prime minister "associated the use of RuPay cards with nationalism, claiming it serves as 'kind of national service'."