Mastercard is accelerating its push into value-added services in India as the rapid rise of the Unified Payments Interface (UPI) continues to transform the country's digital payments ecosystem. The global payments giant is looking beyond its traditional card network business and expanding into high-growth areas such as cybersecurity, data analytics, consulting, artificial intelligence (AI), loyalty solutions, and merchant services.

Key Highlights

• Mastercard is expanding AI, cybersecurity and analytics services to diversify revenue beyond payments.
• The company is strengthening merchant solutions as UPI continues dominating India's payment ecosystem.

The move reflects Mastercard's strategy to diversify revenue streams and strengthen its presence in one of the world's fastest-growing digital payments markets. According to Gautam Aggarwal, Division President, South Asia at Mastercard, the company is intensifying its focus on services in India, an area that has historically received less attention compared to other global markets. Globally, nearly 41% of Mastercard's revenue already comes from non-core businesses, highlighting the growing importance of services beyond payment processing.

Mastercard's India strategy will be built around three key pillars-consumer payments, commercial payments, and value-added services. The company believes that simply operating as a payment network is no longer enough in an environment where UPI, RuPay, Visa, Mastercard, and other payment systems compete in an increasingly crowded market. Instead, the focus is shifting toward creating additional value for consumers, merchants, and businesses through technology-driven solutions.

Cybersecurity, AI and Merchant Solutions Take Centre Stage

As part of its expansion plans, Mastercard is strengthening offerings in cybersecurity, fraud prevention, AI-powered analytics, consulting, and customer loyalty programs. The company is also exploring opportunities to expand low-cost merchant payment acceptance infrastructure, including soundbox devices that have become increasingly popular among small businesses and retailers.

The push comes as India witnesses unprecedented growth in digital transactions. UPI now accounts for more than 85% of retail digital payment volumes in the country, making it the dominant payment method for consumers and merchants alike. The surge in UPI adoption has significantly altered the competitive landscape for traditional card networks, prompting companies like Mastercard to identify new avenues for growth.

Also Read: UPI Sets New Record with 23 Billion Transactions in May

Mastercard Seeks Growth Beyond Traditional Card Payments

Despite UPI's dominance and the growing popularity of RuPay, Mastercard maintains that the expansion of digital payments has enlarged the overall market rather than eroding its position. The company has reported annual growth of around 20-25% globally and in India, excluding the impact of regulatory restrictions it faced in previous years.

Mastercard is also positioning itself to capitalize on emerging payment trends, including AI-driven commerce, tokenized transactions, and digital payment innovations. Earlier this year, the company demonstrated India's first fully authenticated agentic commerce transaction, showcasing its focus on integrating AI with secure payment systems.

As India's digital payments ecosystem continues to evolve, Mastercard's expanded services strategy underscores a broader industry shift. Rather than competing solely on transaction processing, payment companies are increasingly investing in technology, security, analytics, and value-added offerings to remain relevant in a market increasingly dominated by low-cost, real-time payment systems such as UPI.