RuPay cards issuance has grown to over 3 million in just one year since its launch in March 2012 for use in ATMs and eftpos. RuPay debit cards are now being issued by 20 commercial banks, 32 regional rural banks and over 75 co-operative banks.

Operated under the aegis of the National Payments Corporation of India, RuPay contracted with US-based Acculynk last year to adopt its PaySecure authentication technology for online payment acceptance. Online shoppers using the card enter their PIN on a bank-branded virtual PIN-pad at the merchant checkout. There are no hardware devices, additional passwords, or redirection to another Website for payment.

Speaking at the launch in Mumbai, Shri A. P. Hota, managing director & CEO, NPCI, comments: "Enabling the RuPay card for online transaction through the PaySecure solution will positively impact e-commerce growth in India and be positive for issuers, merchants and consumers. With this launch, NPCI is one step closer to fulfilling the vision of bringing millions of RuPay cardholders to e-commerce."

Bank of Baroda, Union bank of India and Kotak Mahindra Bank are first to join RuPay PaySecure as acquirers whereas Bank of Baroda, Union Bank of India and Bank of India have become issuers. State Bank of India and HDFC Bank will soon join the bandwagon.

The Internet and Mobile Association of India estimates the country has 52 million active Internet users and 40% of them have shopped online.

RuPay PaySecure has already been integrated with 100-plus merchant Websites across multiple categories, with NPCI aiming for 100% coverage by year-end.

NPCI chief Hota says the debit card coalition is aiming for a 50% debit card market share by 2015, at which point it will roll out its first credit cards.