43
Payments Regulation in Asia
0% 10% 20% 30% 40% 50% 60% 70% 80%
Buy now pay later (BNPL) Cash
Credit card Debit card
Digital wallet POS financing Prepaid card
2017
2018
2019
2020
2021
2022
Figure 15. India POS Payments Mix (2017-2022) 92
PUBLIC REPORTING OF CARD FEES
Reserve Bank of India – Annual Volume and MDR Statistics
The RBI provides extensive monthly data for overall market trends of various payment systems operating in India. In addition, monthly reporting of volume and number of transactions of various payment systems, channels, and infrastructures goes back to June 2021. 93 While the Merchant Discount Rate (MDR) for debit POS and QR-based were capped in 2018 94 , the RBI does not regularly publish average interchange or MDR statistics. In January 2020, the RBI implemented a “zero charges” regime for operating UPI in line with the Payment and Settlement Systems Act of 2007, which noted “no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the prescribed electronic modes of payment.” 95 In 2023, however, the National Payments Corporation of India (NPCI) mandated an interchange fee for the use of digital wallets or other prepaid forms of payment on the UPI platform for certain transaction types. 96 An RBI-mandated MDR for credit is currently
92 WorldPay-FIS Global Payments Report (2018-2023). For 2019, due to an absence of WorldPay report- ing for this period, CMSPI estimated the payment method splits by generating average growth rates of the surrounding years. 93 https://www.rbi.org.in/Scripts/PSIUserView.aspx 94 https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11183&Mode=0 95 https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=21082 96 https://www.business-standard.com/economy/news/how-are-upi-wallets-different-from-upi-all-that- you-need-to-know-123050400877_1.html
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