Bullish On India, Mastercard Plans To Invest $1 Billion In Next Five Years
Money & Banking
Mastercard, a technology company in the global payments industry, remains committed to invest $1 billion in India over the next five years despite ongoing Covid-19 challenges. The proposed investments, which will be on top of the $1 billion that Mastercard invested in Indian market in the last five years, will be focussed on building digital payment infrastructure and providing technology and innovation in the digital payments space, said Vikas Varma, Chief Operating Officer, South Asia, Mastercard.
“Mastercard remains bullish in this market and completely relentless in the way we commit ourselves to the growth potential of the Indian market. The current Covid-19 situation may have led to volume contraction (in April to June quarter), but in general, we don’t see a long-term impact whatsoever from digital payments standpoint brought about by Covid-19. If anything, consumers will become more savvy and smarter and pay more heed to new forms of payments that are more convenient and more safe. There will only be more digital payments,” he told BusinessLine.
After the US, India is the second-largest employee base for Mastercard with over 2,500 employees across multiple locations.
“From a business standpoint, our operations continue as normal during these Covid-19 times because we are supported by a core technology infrastructure. Our systems are in place to maintain network operations, customers support while we manage the safety of the employees,” said Varma.
“We are seeing gradual easing of restrictions and phased opening in India. There has been some growth in digital payments. It’s a gradual recovery. Spending levels are moving up though nowhere near in the past. We see spending will return to pre-Covid levels in 12 to 18 months as segments such as travel and entertainment are affected. While digital transactions have grown significantly, it would be fair to say there is an overall contraction and no one category would be able to make up for some of the others,” he said.
Varma said that Mastercard will push its client banks in India to go for contactless cards. He highlighted that contactless payments are being used for daily shopping, pharmacies and groceries.
He said that contactless payments will gain traction not only through plastic cards but also through smartphones. “People are getting rapidly enabled on contactless plastic cards today. Paying contactless through mobile phones is taking off in a fairly big way,”said Varma.
Besides contactless, Mastercard also sees ‘tokenisation’ as key growth driver as digital payments surge in the Indian market. The payment company also sees SoftPoS and QR Codes take off in the IHendian market in the years to come.
Through a SoftPoS, merchants can use their smartphones to accept payments. There won’t be any need for physical infrastructure like a PoS machine at the level of merchant to accept payments.
Mastercard is also quite bullish on e-commerce, with 68 per cent of consumers polled in India believing there will be less on-store shopping in the future.
Published on
June 29, 2020
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
Support Quality Journalism
Mastercard, a technology company in the global payments industry, remains committed to invest $1 billion in India over the next five years despite ongoing Covid-19 challenges. The proposed investments, which will be on top of the $1 billion that Mastercard invested in Indian market in the last five years, will be focussed on building digital payment infrastructure and providing technology and innovation in the digital payments space, said Vikas Varma, Chief Operating Officer, South Asia, Mastercard.
“Mastercard remains bullish in this market and completely relentless in the way we commit ourselves to the growth potential of the Indian market. The current Covid-19 situation may have led to volume contraction (in April to June quarter), but in general, we don’t see a long-term impact whatsoever from digital payments standpoint brought about by Covid-19. If anything, consumers will become more savvy and smarter and pay more heed to new forms of payments that are more convenient and more safe. There will only be more digital payments,” he told BusinessLine.
After the US, India is the second-largest employee base for Mastercard with over 2,500 employees across multiple locations.
“From a business standpoint, our operations continue as normal during these Covid-19 times because we are supported by a core technology infrastructure. Our systems are in place to maintain network operations, customers support while we manage the safety of the employees,” said Varma.
“We are seeing gradual easing of restrictions and phased opening in India. There has been some growth in digital payments. It’s a gradual recovery. Spending levels are moving up though nowhere near in the past. We see spending will return to pre-Covid levels in 12 to 18 months as segments such as travel and entertainment are affected. While digital transactions have grown significantly, it would be fair to say there is an overall contraction and no one category would be able to make up for some of the others,” he said.
Varma said that Mastercard will push its client banks in India to go for contactless cards. He highlighted that contactless payments are being used for daily shopping, pharmacies and groceries.
He said that contactless payments will gain traction not only through plastic cards but also through smartphones. “People are getting rapidly enabled on contactless plastic cards today. Paying contactless through mobile phones is taking off in a fairly big way,”said Varma.
Besides contactless, Mastercard also sees ‘tokenisation’ as key growth driver as digital payments surge in the Indian market. The payment company also sees SoftPoS and QR Codes take off in the IHendian market in the years to come.
Through a SoftPoS, merchants can use their smartphones to accept payments. There won’t be any need for physical infrastructure like a PoS machine at the level of merchant to accept payments.
Mastercard is also quite bullish on e-commerce, with 68 per cent of consumers polled in India believing there will be less on-store shopping in the future.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
Support Quality JournalismFormer Army Maj. Gen. John B. Richardson IV Joins USAA To Lead Military Affairs
Two-star general and decorated combat veteran to bring forward-looking vision in continued service to military members a... Read more
Steeped In Tradition: USAA Kicks Off 124th Army-Navy Game Celebrations In A Massive Way, Honoring 250th Anniversary Of The Boston Tea Party
USAA honors history of rivalry game and the city, bringing giant bag of tea to Boston’s historic sites Read more
USAA Life Insurance Announces New Relationship With Trust & Will
USAA Life Insurance Company, a leading financial services brand for military members and their families, and Trust &... Read more
“Go Beyond Thanks:” New Survey Reveals We Should Do More Than Simply Thank Our Veterans For Their Service
Data Reveals Half of Military/Veterans Surveyed Feel Uncomfortable or Awkward When Someone Says the Phrase “Thank You ... Read more
USAA Expanding Education Program To Include Tuition-Free Support For Employees And Employee Dependents
Company also announces student loan 401(k) contribution match up to 8% Read more
USAA Life Insurance Company Introduces Fixed Indexed Annuity
New product provides tax-deferred growth along with principal protection to help build retirement savings. Read more