US firms face off with Indian rival Paytm in lobbying against data storage rules
Updated : July 25, 2018 08:37 AM IST
US payment firms have successfully pushed India to consider diluting rules on data storage, but their lobbying campaign has sparked a bitter industry spat pitting them against local rival Paytm, according to sources and documents seen by Reuters.
India's central bank in April directed payment firms to store data locally for "unfettered supervisory access" - a move companies such as Visa, Mastercard and American Express fear would cost millions of dollars and hamper global fraud detection.
But the rules give a competitive advantage to Paytm, backed by Japan's Softbank Group and China's Alibaba, which already stores all its data in India. The company has publicly supported the proposal and, behind closed doors, tried to thwart efforts of those opposing them.
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