Paytm Payments Bank Ditches RuPay, Joins Visa; Will Issue 1 Crore Visa Debit Cards ?With International Usage!
Paytm, which is India’s largest issuer of RuPay cards, has stunned everyone ditching RuPay and opting to partner with Visa.
In a move which will benefit Visa, Paytm will now issue 1 crore virtual debit cards to their users, which will have international usage approved.
This is for the first time that a Paytm Payments Bank user will be able to make international transactions, using Visa debit cards.
Paytm’s Virtual Debit Card With Visa
Initially, Paytm Payments Bank will issue virtual debit cards with Visa power, which can be used at merchants for making payments.
Soon, as per the usage, and account history, users can be given an option to get physical debit cards with chip, which can be used to make contactless payments at the merchant outlet.
Satish Kumar Gupta, CEO & Managing Director, Paytm Payments Bank Ltd, said, “As we continue to strive and bring half-a-billion Indians to the mainstream digital economy, it is indeed a proud moment for us to partner with Visa.”
Paytm Payments Bank has issued 57 million digital debit cards, and every district in India has atleast one such card holder. This is a big feat for a neo-banking startup.
Why Paytm Moved From RuPay To Visa?
As per some reports coming in, the issue of Zero MDR for RuPay cards burnt a hole in the pockets of the card issuer such as Paytm Payments Bank, and their source of revenue decreased dramatically.
Paytm Payments Bank and other issuers of RuPay cards have spent heavily to promote RuPay cards, by offering deep discounts, cashback and exclusive access to products and services. The revenue from MDR was expected to balance these extra expenses, and create a solid customer base.
But since Govt announced zero MDR, things changed.
With no incentive left for RuPay card, since the issuer won’t be able to make any money, they are now looking at alternatives.
And Visa presented themselves with the perfect strategy.
Paytm said, “For the first time, the bank’s customers will also be able to make international transactions using their Visa debit cards. Soon, the customers will also have an option to request for a physical card. This will enable customers to make contactless payment through their chip-inserted cards,”
We will keep you updated, as more details come in.