India's homegrown digital payments ecosystem, anchored by two systems, is challenging Visa and Mastercard's dominance in the world's most populous nation. The backbone is UPI, a nine-year-old bank-to-bank payment network that processes over 13 billion monthly transactions through QR codes and phone numbers, accounting for 71% of all transactions and 36% of consumer spending, according to Bernstein.

RuPay, India's domestic card network, has leveraged its exclusive right to process credit card transactions through UPI to double its volume to $7.43 billion in fiscal 2025's first seven months. It now represents 28% of credit card transactions, up from 10% last year. Small merchants are adopting the system as RuPay only charges fees on transactions above $23.3. India's central bank has also mandated banks let customers choose their card network, ending exclusive deals with global providers.

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