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Mastercard to Invest $ 1 Billion In India in Next Five Years

Mastercard to Invest $ 1 Billion In India in Next Five Years

Mastercard is planning to invest $ 1 billion in the coming five years focused at converting India into a vital node in the company’s infrastructure

India:  Mastercard, a global leader in payment technology, announced intentions to set up its first data processing center in accordance with the government’s data localization policy. The center which will cost around $ 350 million is expected to be functional in the next 18 months and offer employment opportunities to over 1,000 people. The investment is expected to foster innovation and increase Mastercard’s speed-to-market capabilities and value-added services.

Co-president, Asia Pacific at Mastercard stated that, “There is a very large presence that Mastercard has built, and now, after having seen the last five years, we are very bullish on the overall Indian economy and what the future looks like, and clearly very excited about the digital payments ecosystem and payments ecosystem in general.”

The company considers growth in the digital payment in India as a lucrative opportunity and plans to set up its first service hub outside the US. Earlier also, the payment technology major invested $ 1 billion in India over the last five years, resulting in several acquisitions and improvements in technology development capabilities. Mastercard invested in Razorpay in 2016, to push the adoption of online and mobile payments among small businesses in India.

According to TechSci Research, the investment by Mastercard to develop global tech node in the country will allow the company to enhance its footprints in the fintech market. Low cost of internet and launch of services like UPI and NCPI and initiatives taken by the Indian government are fueling the growth of fintech market in the country. Moreover, the country is already a leading fintech hub in Asia and is attractive large investments. Rising number of leading global players such as Google and Amazon in the country’s fintech space is also positively influencing the growth of fintech market in India.

According to the published report by TechSci Research, Global AI in Fintech Market By Component (Solution (Software Tools and Platform) and Services (Managed and Professional)), By Deployment Mode (Cloud and On-premise), By Application, By Region, Competition, Forecast & Opportunities, 2024”, the global AI in Fintech market is anticipated to grow at a double-digit CAGR during the forecast period, on account of technological advancements and surging penetration of internet. Fintech or financial technology is the name given to the new technological innovations that aim to compete with traditional financial methods in delivery of financial services. Artificial intelligence (AI) is transforming the finance industry. Since, AI helps to improve the efficiency and reduce the chances of error, the application of AI in Fintech is increasing at a rapid pace.

According to another recently published report by TechSci Research, Global Real Time Payment Market, By Type (24*7*365 and Bank Operating hours), By Certification (ISO Certified and Non-ISO Certified), By End User (Technology Providers), By Company and By Geography, Forecast & Opportunities, 2014-2024”, the global Real Time Payment market is expected to witness robust CAGR during 2014 - 2024. Countries such as Australia, China, India, US, Canada, etc., are already quite active in the real time payment space, and an increasing number of countries are planning or are moving towards instant payment approach. Instead of lining up at a bank or nearby payment offices, customers can make payments from anyplace sitting anywhere in the world. Moreover, increasing number of cyber-attacks and data breaches, bank liquidity management, increasing government initiatives, growing number of smartphones, and growing demand from merchant side, globally, is expected to boost the demand for real time payments over the next five years as well. Key players operating in the market include ACI WorldWide, NEC, CapGemini among others.