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 : India's finance minister says Mastercard, Visa losing out to local players

share with twitter share with LinkedIn share with facebook
share via e-mail
11/08/2018 | 11:26am CET
FILE PHOTO: India's Finance Minister Arun Jaitley attends a news conference sharing details about the recapitalisation of public sector banks in New Delhi

NEW DELHI (Reuters) - India's finance minister said on Thursday that Mastercard and Visa were losing market share to domestic payments networks, months after Mastercard complained to the U.S. government that Indian Prime Minister Narendra Modi was using nationalism to promote a local rival.

Finance Minister Arun Jaitley spoke about the surging growth of RuPay and Unified Payment Interface (UPI), which allows swift inter-bank fund transfers, on the second anniversary of Modi's shock decision to replace high-value bank notes in a bid to flush out untaxed wealth.

Modi has said when Indians use RuPay they were serving the country as its transaction fees stay within India and could help build roads, schools and hospitals, an endorsement that has worried Purchase, New York-based Mastercard, which is the world's second-largest payments processor.

"Today Visa and Mastercard are losing market share in India to indigenously developed payment system of UPI and RUPAY Card, whose share have reached 65 percent of the payments done through debit and credit cards," Jaitley said in a Facebook post https://www.facebook.com/notes/arun-jaitley/impact-of-demonitisation/906015826253633 about the various results of the note scrapping exercise, known as demonetization.

Visa declined to comment. Mastercard did not respond to an email seeking comment.

RuPay process payments between banks and merchants for purchases made with credit or debit cards, while UPI instantly transfers funds between two bank accounts linked to mobile phones.


Jaitley was referring to the volume of transactions, not the value.

Though RuPay, owned by many Indian and foreign banks, accounts for more than half of India's 1 billion debit and credit cards, industry sources say Visa and Mastercard still process the vast majority of the value of payments transactions in the country. Indian payments transactions were worth $51 billion in August, according to central bank data.

Jaitley said RuPay's total transactions had leapt to 84.3 billion rupees ($1.16 billion) as of September, from 11 billion rupees before demonetization. Total transactions done using UPI had jumped to 598 billion rupees ($8.26 billion) from 500 million rupees in October 2016, around the time it was launched.

Reuters reported last week that Mastercard complained to the Office of the United States Trade Representative on June 21 that Modi "associated the use of RuPay cards with nationalism, claiming it serves as 'kind of national service'."

The Mastercard note said that while Modi’s digital payments push was “commendable”, the Indian government had adopted “a series of protectionist measures” to the detriment of global companies.

The story sparked a backlash on social media against Mastercard in India, one of the world's biggest payments growth markets.

Several people said on Twitter they had asked their banks to replace their Mastercard with RuPay, with some using the hashtag #BoycottMastercard to voice their concerns.

One user posted a picture of a Mastercard cut into pieces, while another named Ramesh uploaded a graphic with a Mastercard logo on a toilet flush. A spokesman for the Delhi arm of Modi's ruling party, the Bharatiya Janata Party, said he had asked his bank to cancel his Mastercard and switch to RuPay.

Mastercard did not respond to Reuters' emailed request for comment on the social media backlash.

Ashwani Mahajan, who heads an economic group, Swadeshi Jagran Manch, which is linked to the ideological parent of Modi's party, said on Thursday that companies such as Mastercard should be "competing with RuPay, not complaining to the U.S. government".

"They have enjoyed their market share for so long, we have the right to protect and promote our economic interests," Mahajan told Reuters.

($1 = 72.4000 Indian rupees)

(Reporting by Aditya Kalra and Krishna N. Das; Editing by Martin Howell and Muralikumar Anantharaman)

By Aditya Kalra and Krishna N. Das

Stocks mentioned in the article
ChangeLast1st jan.
MASTERCARD -0.49% 198.17 Delayed Quote.30.93%
VISA 0.00% 139.72 Delayed Quote.22.54%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on MASTERCARD
11/13MASTERCARD : QNB and Mastercard announce Bentley Flying Spur winner promotion
11/12MASTERCARD : QNB, Mastercard name contest winner
11/12QNB : Mastercard holder wins a brand new Bentley Flying Spur
11/12VTB BANK : (Armenia) summed up the results of "When You Win" marketing  campaign..
11/12CITY POSSIBLE : Mastercard Launches Global Network for Urban Co-Development
11/09MASTERCARD : & Bank of America Announce the National "Grow Your Biz Contest" Sma..
11/09AmEx wins China approval to clear card payments
11/09MASTERCARD : & Bank of America Announce the National “Grow Your Biz Contes..
11/09EDENRED : Corporate Spending Innovations Announces Acquisition by Edenred SA
11/09COMMERCIAL BANK OF CEYLON : Prize bag of 20 air tickets to Singapore for new Com..
More news
News from SeekingAlpha
11/13ClearBridge Dividend Strategy Portfolio Manager Commentary Q3 2018 
11/13Mastercard, Inc. (MA) Presents at Citi 2018 Financial Technology Conference (.. 
11/12Akre Focus Fund Commentary Third Quarter 2018 
11/12Vulcan Value Partners Quarterly Letter Q3 2018 
Financials ($)
Sales 2018 14 951 M
EBIT 2018 8 367 M
Net income 2018 6 515 M
Finance 2018 2 929 M
Yield 2018 0,51%
P/E ratio 2018 31,93
P/E ratio 2019 26,45
EV / Sales 2018 13,5x
EV / Sales 2019 11,8x
Capitalization 205 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 230 $
Spread / Average Target 16%
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$)
MASTERCARD30.93%204 669
VISA22.54%310 893
AVAST0.00%3 561
MIMECAST LTD20.13%2 069