NPCI is in talks with countries in Africa and South America to help them build digital payment systems like its Unified Payments System (UPI) and expects two launches by 2027.
The overseas arm of the National Payments Corporation of India (NPCI) is in talks with several countries and is closing in on an agreement with one of them, said Ritesh Shukla, CEO of NPCI International Payments Ltd. (NIPL). NIPL has held talks with at least 20 countries in Africa and South America to help them develop a UPI-like system.
What’s new:
India’s Unified Payments Interface (UPI) is set to revolutionize digital payments in Africa and South America by 2027. The National Payments Corporation of India (NPCI) is in discussions with multiple countries in these regions to assist them in building UPI-like real-time payment systems. NPCI’s international arm, NIPL, has already secured agreements with the central banks of Peru and Namibia and is closing in on additional countries for similar partnerships.
Key insight:
The expansion of UPI to Africa and South America signifies India’s growing influence in global digital payments infrastructure. UPI’s proven success in India, with over 15 billion monthly transactions, showcases its potential to transform the payment landscape in developing countries by promoting financial inclusion, ease of transactions, and economic growth.
How it works:
NIPL works closely with central banks and financial institutions in these countries to develop payment systems based on UPI’s framework. It provides technical assistance and links real-time payment systems across borders. This includes linking India’s UPI with existing systems like Singapore’s PayNow, enabling seamless cross-border transactions for Indian travelers, and expanding UPI’s global reach.
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Results:
NIPL has already signed deals with Peru and Namibia, with plans to launch real-time payment systems in these countries by late 2026 or early 2027. These systems will mimic the UPI model, allowing fast, secure, and efficient payments. In addition, the internationalization of UPI is currently underway in other countries like France, UAE, Nepal, and Bhutan.
Why it matters:
This expansion is crucial for the global payments ecosystem, as UPI offers a cost-effective, scalable solution for countries seeking to modernize their financial infrastructure. It also enhances India’s standing as a leader in financial technology, showcasing its ability to export innovation. By partnering with countries in Africa and South America, India is positioning itself as a central player in the global digital economy, fostering economic ties and promoting financial inclusion.
We’re thinking:
The internationalization of UPI will unlock numerous opportunities for India in the form of strengthened partnerships, economic growth, and enhanced technological leadership. It has the potential to transform the financial systems of developing countries, while also opening new markets for Indian fintech companies, driving long-term collaboration and growth.
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