Hyderabad: Mastercard, a technology company whose payments processing network connects consumers, financial institutions, merchants and businesses, has started sharing the transaction data within India. The data that has been saved in overseas servers will be gradually deleted and only one database will be maintained in India. The deletion, however, will happen gradually as the data is huge, said Rajeev Kumar, senior vice-president, market development (South Asia), Mastercard.
This step is in line with the Reserve Bank of India’s diktat that Indian transaction data should be stored within India to safeguard the security and safety issues of the consumer.
“We are saving the data locally from October last year. However, we are working with the RBI seeking adequate time for deleting the data saved outside. The data pertains to several years. We are building facilities that are the better than the existing ones to store data,” he said.
Mastercard will also invest $1 billion (about Rs 7,000 crore) over the next five years and this will also cover safety and security aspects. It currently has about 2,000 employees in India and this could be more than double as investments happen. The $1 billion investment announcement is in addition to a similar amount that it has invested during 2014-19, he said adding that this is in line with its commitment to Make in India and Digital India.
The investment will also be used to build a service hub, which will focus on developing and delivering value-added services such as authentication, tokenization, cyber security and intelligence solutions and data analytics. Apart from allowing processing of domestic transactions in India, this investment will allow co-design and co-development of such services and solutions locally. Depending on the need, these will also be deployed outside India.
It now has operations in Bengaluru, Pune and Gurugram. “We are growing at a rapid pace and we will be keen to expand to new areas,” he said replying to a query if Mastercard has plans to set up its operations in Hyderabad. Mastercard has made two acquisitions and also invested in a few fintec startups through its India Fund programme.
On the trends, he said the number of ATMs has more or less plateaued but the number of transactions is on the rise. This is because partner banks are willing to share the costs. Also, digital transactions are on the rise and the number of access points (like Pos and online) grew more than four-fold to 50 lakh from 13 lakh in two years after demonetisation, he said.
Mastercard is empanelled with the Unique Identification Authority of India as an Authentication Service Agency for providing Aadhaar-based authentication and e-KYC services. It is working with partners to develop and implement technologies that will prevent, detect and resolve threats, he said.