Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  MasterCard    MA

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

MasterCard : Government proposes easing local data storage rules for foreign payment firms

share with twitter share with LinkedIn share with facebook
share via e-mail
07/11/2018 | 09:24pm CEST

NEW DELHI: India's finance ministry has proposed relaxing a directive from the country's central bank that would compel global payment firms to store customer data only locally, following weeks of intense lobbying by U.S. companies and trade bodies.

Easing the proposal would be a relief for firms including MasterCard, Visa and American Express, which fear India's data onshoring move could cost them millions of dollars and set a precedent for other major governments to implement similar rules at a time when there is heightened scrutiny of how companies globally handle their customers' data.

Prime Minster Narendra Modi has been aggressively pushing digital and cashless modes of payment that leave an electronic trail as part of a campaign to crack down on the black economy.

ALSOREAD | Reserve Bank of India seeksupdateon payments data storage every fortnight

Foreign payment companies were caught off guard in April by the Reserve Bank of India's (RBI) one-page directive that said all payments data should, within six months, be stored only in the country for "unfettered supervisory access".

India's finance ministry, in a meeting held in June with RBI officials and executives from payment firms, said that a possible solution could be that companies would be allowed to store data offshore, as long as a copy was kept in India.

The companies had opposed the restriction on storing data overseas and had lobbied for its removal.

The ministry has also proposed clarifying the kind of data that needed to be stored and the time given to implement the directive, according to a copy of the minutes of the meeting reviewed by Reuters.

At the June meeting, RBI executive director S Ganesh Kumar said the central bank had been approached about the companies' concerns and was in the process of issuing a circular to clarify the rules, according to the minutes. Suggestions made at the meeting would be helpful in deciding the matter, Kumar said.

ALSOREAD | Government defer the decision to incentivize digital payment by one year

The meeting was chaired by the government's Economic Affairs Secretary Subhash Chandra Garg and attended by other ministry and RBI officials, as well as executives from companies including MasterCard, Visa and American Express.

MasterCard and American Express declined to comment. Visa and RBI did not respond to an email seeking comment.

"This is a big step and shows India has a progressive outlook towards businesses," said an executive with one of the payment companies, adding that the ministry had tried to address some of the industry's biggest grouses.

"This will hopefully serve as a precedent for other regulators who might be thinking of data localisation," said a lawyer familiar with the matter, adding that this would also allow for data processing and analytics - which is currently done offshore - to continue.


The RBI had initially resisted a joint lobbying effort by the foreign payment companies, with sources with direct knowledge of the matter telling Reuters in May that the central bank was telling the firms to comply, not complain.

The industry's main concerns have been over restricting data storage to India, a lack of clarity on the type of data that needed to be stored and the timeline to implement the rules.

During the June meeting, representatives from U.S. lobby group U.S.-India Business Council (USIBC) said that storing the data only in India would be a security risk, as in the event of a natural disaster no-one would have access to it if it was all stored in one place.

The representatives also said that only after understanding the kind of data that needed to be stored would they be able to estimate the time needed to set up the necessary infrastructure.

Global payment firms currently store and process Indian transactions outside the country. The RBI's directive comes as more people in India are switching to plastic, partly driven by the Modi government's decision to replace high-value currency notes in November 2016, since when the government has aggressively discouraged cash transactions.

In March, Indians clocked transactions worth $52 billion using their 900 million credit and debit cards, nearly double the amount recorded in November 2016, data from the RBI showed.

But rising fraud is a concern too. The RBI in April said the payment ecosystem in India had "expanded considerably", making it necessary to ensure "the safety and security" of data.

(c) 2018, Express Network Pvt Ltd. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EXPRESS COMPANY -0.19% 110.9 Delayed Quote.11.88%
MASTERCARD 0.23% 221.9 Delayed Quote.46.60%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on MASTERCARD
09/20MASTERCARD : Etisalat Misr, NBE, MasterCard launch ‘super promo’, su..
09/20MASTERCARD : UPDATING VIDEO Mastercard Introduces Mastercard Track™ to Mak..
09/20MASTERCARD : Signs with League of Legends® as First Global Partner of the World&..
09/20MASTERCARD : named global partner for League of Legends
09/20MASTERCARD : Introduces Solution to Losses in Business
09/19MASTERCARD : UBA Introduces Platinum Mastercard On the Liberian Market
09/19MASTERCARD : introduces Mastercard Track to aid ease of doing business
09/19MASTERCARD : Retailers Swipe Fee Settlement Fails to Address Broken Payment Ecos..
09/19MASTERCARD : Nrf - foster innovation in customer experience
More news
News from SeekingAlpha
09/20Mastercard, Inc. (MA) Management Presents at Autonomous Future of Commerce Sy.. 
09/19THIS IS WHAT DISRUPTION LOOKS LIKE : The Coming Shakeout In Transaction Banking 
09/18Retailers object to swipe fee settlement 
09/18FINDING SMARTER BETA : Momentum, Quality, And Low Volatility 
09/18Market Is Taking Tariffs Well - Cramer's Mad Money (9/17/18) 
Financials ($)
Sales 2018 14 951 M
EBIT 2018 8 353 M
Net income 2018 6 472 M
Finance 2018 3 111 M
Yield 2018 0,46%
P/E ratio 2018 35,77
P/E ratio 2019 29,72
EV / Sales 2018 15,2x
EV / Sales 2019 13,3x
Capitalization 230 B
Duration : Period :
MasterCard Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends MASTERCARD
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 40
Average target price 227 $
Spread / Average Target 2,7%
EPS Revisions
Ajaypal S. Banga President, Chief Executive Officer & Director
Ari Sarker Co-President-Asia Pacific
Richard Neil Haythornthwaite Chairman
Edward McLaughlin President-Operations & Technology
Martina Hund-Mejean Chief Financial Officer
Sector and Competitors
1st jan.Capitalization (M$)
MASTERCARD46.60%229 903
VISA31.60%332 076
PAYPAL HOLDINGS23.09%107 241
AVAST0.00%3 427
MIMECAST LTD46.84%2 452