This particular move marks a strategic change as NPCI focuses on expanding its footprint in the nation’s rapidly growing credit card market.
Given Visa and Mastercard have long provided cashback and issuance based incentives and offers to banking institutions, NPCI is now focused on adopting a similar approach. “NPCI is becoming very competitive and is pushing domestic payment methods aggressively,” a senior banker told ET.
It is important to keep in mind that the incentives are paid from the fee RuPay earns on every transaction, marking a significant shift from NPCI’s earlier model of offering discounted settlement rates.
RuPay’s UPI advantage sets it apart from global rivals
Furthermore, the rise of RuPay credit cards gained traction in 2022 after the central bank i.e., Reserve Bank of India permitted them to be linked with the Unified Payments Interface (UPI). This unique capability is currently unavailable on Visa and Mastercard credit cards. As of May 2025, there were about 111 million credit cards in circulation in the nation, up from about 55 million in December 2019.
Banks benefit from higher fee income via RuPay push
Insiders of the industry estimate NPCI now pays back 10-12 basis points of the transaction value to banks, depending on volume. This permits banks to classify the payout as non-interest fee income, making it more attractive than simple fee discounts.
According to Kiwi, a prominent fintech firm, RuPay’s share in total credit cards issued rose from 3% in 2023 to 12% in 2024. Major lending institutions such as SBI Card and brands including PhoePe, Super.Money, and Tata Neu have launched co-branded RuPay credit cards in recent months.
Hence, with rising UPI-linked spending and strong financial performance, NPCI is positioning RuPay as a serious alternative in the competitive credit card ecosystem.
