Mumbai: RBI restrictions on MasterCard will achieve credit card issuance by a number of entities.
Publishers such as RBL banks and yes banks and entities such as Indigo, Maruti, Flipkart, Tata, Vistara and Bookmyshow – who publish co-branded cards – need to find alternatives.
RBL Bank has notified shares that around 1 lakh publishing a new credit card can be beaten.
The bank is in talks with a visa, but issuing a card under a new network will take 8-10 weeks.
RBL Bank has 30 credit card lakh and is the biggest fifth publisher with a market share of 5%.
Most of the cards are issued by Bajaj Finserv through a partnership agreement.
A bank spokesman said that for the publication of a new credit card, the bank was evaluating migration to other platforms for ‘unlimited transitions’.
This adds that the debit card is also available on the visa and rupay platform and the new publication will not be hit.
Bankers said that in addition to technical integration, new partnerships with visas will require banks to negotiate all incentives and offer how.
Pandemic has changed the dynamics of the payment industry.
While the shopping of discretion in the mall and the store has fallen, online shopping has been accelerated.
According to research reports by ICICI Securities, restrictions will help increase market share for each petuman that is not affected.
“The issuance of a co-branded card with the MasterCard will also stop due to the restrictions on the RBI.
If certain Co-Branded MasterCard credit cards have a high contribution to the overall mixture of credit card players, it will have a higher impact on the issuer’s business growth,” said the report.
According to bankers, the visa will be the main enhancer of the market share because the bank is reluctant to issue many Rupay credit cards, because the market share is still low.
However, domestic publishers, market leaders in the number of debit cards, but have not encouraged expenses.