Reuters reported that Indian Finance Minister Arun Jaitley had said in a Facebook post that domestic payments firms RuPay and Unified Payment Interface — the latter allows fast transfers between banks — were growing rapidly two years after Modi, in a shock decision, removed high-denomination currency notes from circulation.
Modi had said earlier this year that when Indians used RuPay they were aiding their country as transaction fees would remain at home.
Jaitley said in his post, made in both English and Hindi,: "Visa and Mastercard are losing market share in India to indigenously developed payment system of UPI and RuPay card whose share have reached 65% of the payments done through debit and credit cards."
Mr @realDonaldTrump promotes American interest and that is not only legal but all acceptable.— Varun Agarwal (@originalvarun) November 8, 2018
When @narendramodi promotes Indian Interest, it becomes illegal and unacceptable.
I hate @Mastercard @mastercardindia @Visa #BoycottMastercard Adopt @RuPay_npci
The Bharat Interface for Money, an app developed for quick payment transactions using UPI, is used by 12.5 million Indians. BHIM transactions have increased from Rs 200 million in September 2016 to Rs 70.6 billion two years later. The share of BHIM transactions in overall UPI transactions is at about 48% in June, 2017.
The RuPay card is used both at point of sale and for ecommerce and its transactions have increased from Rs 8 billion before demonetisation to Rs 57.3 billion in September 2018 for PoS and from Rs 3 billion to Rs 27 billion in ecommerce.
Mastercard, Visa and American Express have also been lobbying the Indian Government to allow them to store the data of Indian customers outside the country.
The news that Mastercard and Visa had complained to their government about Modi's comments on RuPay led to a massive backlash on social media, with users employing the hashtag #BoycottMastercard to protest.
Reuters quoted Ashwani Mahajan, who heads a group linked to Modi's Bharatiya Janata Party, as saying Mastercard and Visa should compete with RuPay, not complain.
Post independence, the East India Company has been replaced by various rouge MNC's. @Mastercard going to USTR reflects its sick colonial attitude. MNC's speak of free trade only when they face competition. Such MNC's must be boycotted by the Indian public. #boycottmastercard— Ajay Krishna (@AjayKrishna_IND) November 2, 2018
“They have enjoyed their market share for so long, we have the right to protect and promote our economic interests,” he said.