With over 47% transactions, Visa way ahead of Rupay in online merchant payments

US based payment firms Visa and Mastercard are still most used payment cards by online merchants in compare to government-backed Rupay card, according to the latest Financial Software and Systems (FSS) report.

In terms of online merchant transactions, Visa had the most share of transactions about 47.5% whereas Mastercard did 35% of transactions, said the FSS Payments Trend Report 2018.

Rupay only managed 16% of the transactions. FSS claimed to process over 58% of total online payments for merchants.

This is in contrast to NPCI report published last month.

According to NPCI, RuPay has grown more popular among online shoppers and consolidated its market share in a year time.

RuPay cards e-commerce transactions shot up to 54 million in March from 25 million transactions last year April, it said. Most of the contributors to the growth reported to be public-sector bank account holders living in smaller towns.

The number of merchants accepting these cards are also claimed to grow over 40 per cent. The RuPay Card is used both at the Point of Sale (PoS) as well as for e-commerce payments, the NPCI had added.

Meanwhile, FSS report further said that the overall transaction also witnessed 36 % growth year-on-year(Y-o-Y) to 790 million, which was mainly driven by debit card transactions. Though, average transaction size growth Y-o-Y was in negative. The average amount for debit card transactions was $13.4 compared with $54.4 for credit cards.

Debit card still is the most preferred payment instruments for online shoppers. It registered about 589 million transactions compared to 201.4 million credit card transactions in 2018.

In terms of digital transactions, Mobile wallets grabbed the highest share at 291 million, which was followed by the travel and hotel segment at about 140 million.