Mastercard has halted its Russia operations, time for PM Modi to introduce Russia to RuPay

• Mastercard has decided to abandon its Russian customers in the wake of the Ukraine-Russia crisis
• Indian RuPay needs to take up the place vacated by both these companies 
• It will help to help India increase its already strong soft power image in Russia as well as all around the world

Every problem has an opportunity hidden in it. Russians are now facing a severe problem of being unable to use their debit and credit cards made by Mastercard, an American company. The time is opportune for PM Modi to introduce our RuPay to Russia.

Mastercard and Visa blocked Russian operation

Mastercard has announced that it has blocked its services to multiple Russian financial institutions. The move came in compliance with US sanctions on Russia over its invasion of Ukraine. Visa Inc., another American multinational card company has also announced the same. 

RuPay has a chance to pitch in

The blocking of services by American financial companies has the potential to significantly impact Russians’ lives. Currently, out of 30 crore credit and debit cards in Russia, both companies control 21.6 crores of them. 

Additionally, both companies control about 30 to 60 per cent of total retail payments in Russia. Russians are flocking to ATMs to withdraw as much cash as they can before their cards get disabled.

Read more: As Visa and Mastercard complain about the undue advantage to RuPay, Modi govt doubled down

In the wake of Russia’s abandonment by Mastercard and Visa, India has a significant opportunity to provide a goodwill gesture to the Soviet nation by offering our RuPay debit card services. 

It will ensure that by the time both the aforementioned companies revoke the blocking, RuPay will have occupied a significant market share in the meantime.

RuPay’s journey over the years

RuPay has been slowly taking over the market share of multinational companies in India as well as abroad. RuPay cards came into existence in 2012, but could not make significant progress due to oligopolistic (a market in which few companies gang up to dominate others) trade practices by Mastercard, Visa and American Express.

Read more: How Desi RuPay defeated the global giants Mastercard and Visa

Since it was tough to snatch existing market share, RuPay made its first headwinds in the less high-profile section of India. Contributing significantly towards PM Modi’s Jan Dhan Yojana, it provided millions of cards to the Jan Dhan account holders on the back of its cheap services, much lower as compared to multinational card companies.

RuPay is accepted in 200+ countries

2017 was the year in which RuPay decided to become a major player in the Indian market. In the wake of the Indianisation of the modern economy, RuPay registered significant growth for the next three years and went on to occupy 60 per cent of India’s market share.

The rising popularity of RuPay cards in India prompted other nations to welcome it as well. In 2019, RuPay informed that it is now used by citizens of 195 countries. A few months later, PM Modi launchedRuPay in Saudi Arabia as well. Currently, it is accepted in 42.4 million POS locations and 1.90 million ATMs in more than 200 countries.

Cards are means to gain soft power

India and Russia have mutually cordial relations. Unlike Ukraine, Russia has always stood up for Indian interests on the international stage. Citizens of both countries share mutual admiration as well. Russia would welcome India’s offers with open hands as it will not only help in bolstering the Russian economy but also in taking up a mutual friendship to the next level.

Read more: Russia-India ties are doing pretty well. Moscow just needs to tell its media to behave itself

We live in a world where soft power has to go hand in hand with conventional power. Nothing signifies soft power more than how it impacts someone’s daily life. Credit and Debit Cards are a sure shot means of soft power in the modern world. We should not lose this wonderful opportunity.