With the increasing use of Digital payment, we have seen a sharp growth in the usage of digital wallets, debit and credit cards, UPI payments, Internet Banking Mobile wallets and all other digital payments available. The digital payment gained popularity after the Digital India programme started by the Government of India. This flagship programme’s vision is to transform India into a digitally empowered society. Apart from this programme, various events led to more usage of digital payment like – Demonetisation in 2016 where there was a lot of shortage of cash throughout the nation
According to ET, It is also estimated that by 2023 transactions worth more than $270 billion are expected to shift from cash to digital payment. This is a huge number, so now let us look at the various methods available for digital payments.
- Banking Cards – Debit/Credit or prepaid cards
- Unstructured Supplementary Service Data(USSD) – Transactions are made without internet service.
- Aadhaar Enabled Payment System(AEPS) – Can transfer money between two Aadhaar linked Bank accounts.
- Unified Payments Interface(UPI) – GPay, PhonePe are example of UPI
- Mobile Wallets – Paytm, Freecharge are an example of this.
- Internet Banking – Allows customers to make the transaction and other activities from the Banks website
These are some major methods of Digital Payments popular in India, now let us take a close look at Banking Cards.
There are furthermore classifications available of banking cards such as –
- Debit Card – These are the most common types of bank cards. In such cards, the amount is automatically debited from the available balance in the bank account. They also have daily limits associated with them especially when withdrawing cash from ATMs.
- Credit Card – These cards allow the user to defer payment when making a payment/transaction. You can then pay the back within a certain time.
- Prepaid cards – These cards are loaded with the amount you want and then can be used to purchase products or services. They are very useful for daily expenses and withdrawal from ATMs.
- Virtual Cards – These cards do not have a physical format but their functioning is similar to physical cards.
Among these cards, Debit and Credit cards are widely used and now we will have a closer look at them.
Debit Card in India are available in 5 types –
- VISA Debit card
- MasterCard Debit card
- RuPay Debit Card
- Contactless Debit Card
- Maestro Debit Card
Types of Credit cards in India are a little different than Debit Cards and are mainly classified according to their functioning –
- Basic Credit Card
- Secured Credit Card
- No Annual Fee Credit Card
- Low-Interest Credit Card
- Balance Transfer Credit Card
- Travel Credit Card
- Student Credit Card
- Business Credit Card,
- Cashback credit card
- Secured Credit card, etc.
VISA, MasterCard and RuPay are major financial corporations that provide Credit and Debit Cards in India and to choose which is right for you here are the further details and features of these cards.
We will first see what are RuPay cards –
RuPay is an Indian Domestic card conceived and launched by NPCI in 2012. It was introduced to reduce the monopoly of American Companies like VISA and MasterCard. RuPay cards work similar to VISA and MasterCard and its commission rate is low as compared to others. RuPay facilitates E-Payment at all Indian Banks and financial institutions.
RuPay-Credit/ Debit and Prepaid cards come in 3 types –
- Sunday Select
Every card has its features and speciality
Let us look at features of Rupay credit cards-
- Rupay Classic Credit Card – It is the basic credit card offered by Rupay and gives you some great deals and merchant offers.
- Rupay Platinum Credit Card – This has some more features compared to a classic card. It provides insurance cover of up to 2 lakh and has some more merchant offers. It also provides 24/7 concierge services.
- Rupay Select Credit card – This card gives you Insurance cover of up to 10 lakh and exclusive merchant offers. It also provides 24/7 concierge services
Coming to Rupay debit cards features –
- Rupay classic debit card- It is the basic debit card that comes with some merchant offers and can be used to withdraw money from various ATMs.
- Rupay-Platinum debit card- This comes with some more offers like Insurance cover of up-to 2 lakh, amazon and swiggy offer, a Complimentary lounge program and 24/7 concierge service.
- Rupay-select debit card- This card comes with some amazing offers on Gyms, Golf programs, Health checkups, lounge access. It also gives insurance cover of up to 10lakh.
RuPay also offers Government Scheme cards like –
- RuPay-Kisan Credit Card
Coming to VISA and MasterCard cards –
VISA and MasterCard are both American Companies where VISA is the oldest payment system founded in 1958 and MasterCard came a little later in the year 1966.
Both the cards are accepted globally in more than 200 countries.
VISA credit cards come with different variety like –
- VISA classic credit card – Basic Visa card provides 24/7 global customer assistance and emergency card replacement facility globally
- VISA-gold credit card – This is a higher version than the classic card and provides travel assistance, special offers at merchants
- VISA-Platinum credit card -This provides 24/7 concierge service for travel and other purposes, multiple deals and discounts.
- VISA-Signature credit card – Provides similar features to gold cards and exclusive discounts at hotels, supermarkets, etc. offer fine dining, travel and other features as well.
- VISA-infinite credit card -This is the premium version of Visa credit card and provides infinite travel concierge and reservation assistance. Access to select domestic and international airport lounges.
VISA debit cards also come in 5 types like credit cards and have similar features to that of credit cards.
Mastercard offers 3 types of credit cards –
- Standard MasterCard – This is the basic credit card and can be used for everyday purchases
- World MasterCard – This is the higher version than Standard credit cards and offers some premium experiences like golf. It also provides cell phone protection and global emergency support.
- World Elite MasterCard – This is an elite card and along with some everyday value offers it offers a more premium experience than the world card.
MasterCard debit card also offers similar features to its credit cards.
After seeing the features of all the 3 cards now some major differences between them which you can consider before choosing the right card for you are –
- Rupay charges less processing fees since every transaction will take place from India only.
- Rupay has a fast processing time compared to the other two as its transaction takes place in India.
- rupay-cards are available in public banks, select private banks and rural banks.
- Visa and MasterCard do not include small banks in their network.
- Rupay cards are more secure as their operations are limited in India only.
VISA and Mastercard are globally accepted whereas Rupay debit cards are only accepted by the domestic payment gateway.
Rupay also offers accidental insurance cover and the other two don’t provide such insurance.