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MasterCard Vs RuPay- Which is Better?

Updated on November 29, 2023 , 6891 views

Let’s talk about debit cards.

Debit cards have been one of the best solutions to keep checking overspending habits. Like some say, it is the happy medium between cash and credit card. With the Debit Card in your pocket, you can avoid overspending.

MasterCard Vs RuPay

It also comes with a number of advantages other than just keeping your spending habits in control. Debit cards don’t require an application procedure as credit cards do. There is no requirement for credit worthiness, etc. All you need to have is a Bank account balance. With a debit card, you can also avoid theft of cash and you can escape debt.

But, have you ever wondered why some debit cards have a MasterCard inscribed on the side and the others RuPay? Well, both MasterCard and RuPay are the payment gateways that connect the bank and customers. Both these payment gateways are the most prominent ones today.

Major banks issue debit cum ATM cards for hassle-free transactions and withdrawal of money.

What is the Payment Gateway System?

A payment gateway is a unique technology that businesses, traders, etc., use to accept debit purchases from customers. It is a key component of the electronic payment processing system that sends information to the bank about the customer’s payment. The transaction is then processed.

When visiting a store, you can make a payment with debit cards at the point of sale (POS) terminals. The payments at such points are done by the debit card itself of the phone. When shopping or purchasing anything online, the payment gateways are the checkout portals.

The two most widely used gateway systems in India are the MasterCard and RuPay.

What is Mastercard?

MasterCard is an international payment gateway system founded in 1966. These cards make use of the MasterCard payment network for the processing of transactions. It has a close association with banks and other financial institutions across the world to provide branded payment network cards to customers.

MasterCard’s core product businesses are consumer debit, consumer credit, commercial business products and prepaid cards. MasterCard also earns its revenue from service and processing fees over their products. In 2019, MasterCard’s total revenue was $16.9 billion along with a payment volume of $6.5 trillion.

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What is RuPay?

RuPay is a domestic payment gateway system launched by the National Payment Corporation of India (NPCI) in 2012. It was created to bring the Reserve Bank of India’s dream to fulfilment. RuPay is a combination of two words, Rupees and Payment.

RuPay debit cards have been issued to almost every savings and current account holder in the country with over 1100 banks under coverage.

It has been issued to private sector banks, public sector banks, scheduled cooperative banks, district cooperative banks, urban cooperative banks and regional rural banks across Indian to encourage cashless transactions.

Difference between MasterCard and Rupay

Well, by now you have understood that the major point of difference between MasterCard and Rupay is their payment gateway system. But take a look at a few of the other differences to get a whole and informed picture of them both.

1. Acceptance of Card

This Factor depends entirely on the payment gateway system. Since MasterCard debit cards have an international payment gateway, the card will be accepted anywhere in the world. Rupay debit cards will be accepted in India only. However, you can use it anywhere in India.

2. Transactions Charges

Based on their payment gateways, the transaction charges for both these systems are different. Transaction charges with MasterCard are high as Rs. 3.25 per transaction, whereas the charges are low with the RuPay payment system. It is as low as Rs. 2.25.

3. Fees

The customer is charged for using the MasterCard system since it functions internationally. The customer is charged in case of renewal of the card or loss/theft. There are no fees applied to the RuPay payment gateway system as it functions at a domestic level.

4. Speed of Transactions

Since RuPay functions at a domestic level, the speed of transaction is faster than that of an international system like MasterCard.

5. Target Audience

RuPay debit cards were introduced so that the vast majority living in the rural areas of India would be encouraged to go cashless. MasterCard is more prevalent in urban India.

MasterCard Vs Rupay- Which is Better?

MasterCard and RuPay have benefitted customers in various ways. For the ease of international transactions, you can choose MasterCard. On the other hand, RuPay is the choice if you want to benefit from cashless transactions from anywhere in the country including rural areas.


Well, now you know the major points of difference between MasterCard and RuPay. Both the systems have their own set of advantages if looked more closely. Read all the information related to debit cards before applying for one.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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