Walk into any mall or fuel station today, and you are likely to see a RuPay logo next to the familiar international brands. A decade ago, that would have been hard to imagine. This change says a lot about how quickly India’s digital payments ecosystem has quietly become part of everyday transactions.
Over the last few years, RuPay has moved from being “just another card option” to a popular choice, especially in the credit segment. Its rise fits neatly into a broader story: India’s push to build its own financial structure instead of depending entirely on global networks.
How RuPay Started and Why Credit Matters
RuPay was launched by the National Payments Corporation of India in 2012 as an indigenous card payment network.
- In the early years, it stayed largely in the debit space, depending on Jan Dhan accounts and government-led financial inclusion drives.
- The real strategic shift, however, came when RuPay moved into credit cards. This expansion aligned perfectly with the government’s vision of a more self-reliant and secure digital payment ecosystem, where sensitive data and transaction flows stay within the country.
- It also opened up a new avenue for banks that were looking for lower-cost alternatives to international schemes without compromising on features or acceptance.
Growth Trajectory and Market Penetration
RuPay’s credit structure started becoming popular in the next decade. Major public and private sector banks started issuing RuPay-powered credit products, rather than treating them as niche or secondary offerings.
- Within a relatively short period, the number of RuPay credit cards in circulation rose, cutting across salaried professionals, self-employed individuals, and even new-to-credit users.
- For banks, the business case was simple – compared with global payment networks, RuPay’s transaction fees tend to be lower.
- That directly improves margins and gives lenders room to play with rewards, joining fees, and interest rates. In a market as price-sensitive and competitive as India, even a small cost edge can be meaningful.
Product Diversification and Innovation
RuPay’s growth isn’t just about volume; it is also about variety. Banks have rolled out a full spectrum of products on the network:
- Entry-level cards for young professionals and first-time borrowers.
- Lifestyle and cashback cards targeting online shoppers and frequent spenders.
- Premium variants with curated offers.
One segment that has quietly grown is the secured or deposit-backed segment, often referred to as the FD credit card category. These products are designed for customers who either have limited credit history or are rebuilding their profiles. The bank issues a card against a fixed deposit, using the deposit as collateral.
From the customer’s perspective, the fixed deposit continues to earn interest at regular rates, while the card helps build (or repair) a credit track record as long as payments are made on time. As the risk for banks is lower than with unsecured lending, approvals tend to be faster, and documentation is simpler.
Impact on Financial Inclusion
One of the more critical aspects of RuPay’s rise is its role in deepening financial inclusion. Instead of focusing only on metros and large cities, issuers have actively targeted tier-2 and tier-3 locations where plastic-based credit penetration was historically low.
Many financial institutions have gradually joined the RuPay network, enabling them to offer credit cards to long-standing customers who previously had only savings accounts or basic debit cards.
Wrapping Up
As India’s digital payment stack evolves, RuPay sits in the middle of a very connected ecosystem. The combination of policy support, economic viability for issuers, and improving customer experience gives it a solid base to build on. While international schemes will continue to play a major role, especially in cross-border and high-end segments, a strong domestic network brings balance to the system.
