Global payment solutions provider Mastercard has revealed its plans to invest about Rs.7,000 crore ($1 billion) in India over the next 5 years. This information was revealed by a top executive of the company according to a report mentioned in the Economic Times. Of the total investment amount planned, Mastercard will use $350 million to establish a payments processing centre that can store all Indian payments data locally.
Mastercard is setting up the processing centre as per the mandate set by the Reserve Bank for storing the data of Indian customers locally. This centre is expected to be operational in the next 18 months. This will be the first processing centre for the company outside of the United States, and it is expected to generate about 1,000 jobs in the country. In addition to India, this would also serve the Asia-Pacific and Southeast Asia markets for the company.
Porush Singh, Mastercard’s Division President of South Asia, stated that the centre will provide many value-added services to customers rather than just being a basic node for authorising and processing data.
He also noted that this centre will handle various tasks including e-commerce transactions, Point of Sale transactions, circuit switching for ATMs, and prepaid transactions. It would also handle many other associated services like authentication and fraud prevention.
The company is planning to invest the remaining amount in its workforce and technology. Singh also stated that due to the level of capabilities invested by the company, a large volume of the value will remain within the country. This is the main reason why the company is looking forward to serving multiple markets in the region from India.
Mastercard is also currently exploring partnerships with other firms to drive its international workload into India. In the past five years, Mastercard had invested over Rs.6,500 crore in India. Its current workforce of 2,000 in India is the second-largest for the company right next to its United States home market.
Source: Economic Times