MasterCard, Visa and RuPay to take a hit on revenue as they help push digital payments
Banks and digital payments processors, such as Visa, MasterCard and RuPay, are expected to lose over Rs 1,000 crore in revenue between November and December as the merchant discount rate (MDR) on the usage of debit cards at PoS (point of sale) transactions has been waived till December 31.
Currently, for transactions below Rs 2,000, a merchant pays the acquirer bank 0.75% MDR, while for transactions above Rs 2,000, he shells out 1%. The acquirer bank (the one issuing the swipe machine) then pays 0.6% of its share to the card-issuing bank. The payment processors make anything between six and eight basis points on these transactions from acquirer and issuing banks.
The National Payments Corporation of India (NPCI) also collects 60 paise from card-issuing banks and 30 paise from the bank that issues the swipe machine.As per the latest numbers from the Reserve Bank of India (RBI), the collective value of debit and credit card transactions at ATMs and PoS was Rs 2.62 lakh crore in September, and according to an estimate, banks and payment processors make around 1% on transactions at PoS terminals.
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