UPI An ‘Incredibly Painful Experience’ For Ecosystem Stakeholders: Mastercard CFO
Title: UPI: An ‘Incredibly Painful Experience’ for Ecosystem Stakeholders, Says Mastercard CFO
The Unified Payments Interface (UPI), a real-time payment system that has gained widespread popularity in India, is facing criticism from a significant player in the financial industry. The Chief Financial Officer (CFO) of Mastercard, a global payment technology company, recently described the UPI ecosystem as an “incredibly painful experience” for stakeholders. This statement sheds light on the challenges and complexities faced by companies operating in the Indian digital payment landscape.
Mastercard’s CFO, Sachin Mehra, expressed his concerns about the UPI ecosystem during a financial conference, highlighting several issues that have become increasingly problematic for companies like Mastercard. UPI, a product of the National Payments Corporation of India (NPCI), was introduced to promote digital payments and financial inclusion in India. However, it seems that the system’s rapid growth and success have come with their own set of challenges.
One of the primary issues cited by Mehra is the dominance of UPI and the NPCI in the Indian digital payment space. UPI has become the de facto payment method for millions of Indians, and the NPCI, which operates and manages the UPI system, has a significant influence. According to Mehra, this concentration of power has led to limited opportunities for private players like Mastercard to innovate and compete effectively.
Additionally, Mehra pointed out that the regulatory landscape in India has been complex and often unpredictable for international companies. Frequent changes in regulations and compliance requirements have added to the challenges faced by foreign players, impacting their ability to invest and grow in the Indian market.
Another major concern for stakeholders like Mastercard is data localization. India has implemented stringent data localization laws, requiring companies to store and process sensitive customer data within the country. While this move is aimed at enhancing data security and privacy, it has posed substantial challenges for international companies in terms of infrastructure and compliance.
Furthermore, the CFO highlighted the issues surrounding pricing and interchange fees. The current pricing model for digital payments in India is perceived as inadequate by international players. This has led to tension between companies like Mastercard and the NPCI, with the former pushing for a more balanced pricing structure.
Despite these challenges, Mehra emphasized that Mastercard remains committed to the Indian market and its long-term growth. The company acknowledges the importance of the Indian digital payments ecosystem and its potential for expansion, given the country’s massive population and increasing digital adoption.
In response to Mastercard’s concerns, the Indian government and regulatory authorities should consider creating a more stable and predictable regulatory environment. This would encourage international companies to invest in India with confidence, knowing that their efforts and innovations won’t be stifled by abrupt policy changes.
The comments from Mastercard’s CFO highlight the complexities of operating in the Indian digital payments space and serve as a call to action for Indian authorities to create a more welcoming environment for international players. If these issues can be addressed effectively, it would not only benefit stakeholders like Mastercard but also further accelerate India’s journey towards a digital economy and financial inclusion.
In conclusion, the statement from Mastercard’s CFO underscores the challenges faced by international companies in the Indian digital payment ecosystem. The dominance of UPI, complex regulations, data localization requirements, and pricing issues have collectively made the Indian market a challenging one to navigate. Addressing these concerns and providing a more stable regulatory environment could foster a more inclusive and competitive landscape for all ecosystem stakeholders.
![Vivo Top Executives Summoned by Delhi Court in INR 20,241 Cr Money Laundering Case]({"jaw_blog-16_9-small":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-9-170x170.jpg","width":170,"filesize":11012},"jaw_blog-16_9-middle":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-9-270x270.jpg","width":270,"filesize":21788},"jaw_blog-16_9":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-9-475x475.jpg","width":475,"filesize":50621}})
![Manish Maheshwari’s BAT VC Launches $100 Million Fund to Back Early-Stage Ventures in India]({"jaw_blog-16_9-small":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-8-170x170.jpg","width":170,"filesize":8017},"jaw_blog-16_9-middle":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-8-270x270.jpg","width":270,"filesize":16045},"jaw_blog-16_9":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-8-475x475.jpg","width":475,"filesize":37141}})
![Mumbai-Based Startup ReelSaga Raises $2.1 Million to Revolutionize Mobile Entertainment with Microdramas]({"jaw_blog-16_9-small":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-7-170x170.jpg","width":170,"filesize":8825},"jaw_blog-16_9-middle":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-7-270x270.jpg","width":270,"filesize":18290},"jaw_blog-16_9":{"file":"https:\/\/brandzmagazine.com\/wp-content\/uploads\/2025\/05\/brandzmagazine.com_-7-475x475.jpg","width":475,"filesize":41322}})