UPI's Global Expansion: Simplifying Cross-Border Payments
India's UPI is advancing globally, changing digital transactions and marking a breakthrough in global fintech innovation and inclusivity
The Unified Payments Interface (UPI), India's trailblasing digital payment platform, is set to make significant strides in its global journey. NPCI International Payments Ltd (NIPL) CEO, Ritesh Shukla, recently announced plans to bring UPI to North America and the Middle East, two regions housing substantial Indian diaspora. However, no specific timeline for this expansion has been divulged yet.
The UPI's international footprint began to expand after its successful implementation in Singapore and France, a move that stands as a testament to the platform's robust and versatile nature. The upcoming expansion is part of a strategic partnership that aims at countries significant to Indians, either as tourist destinations or residential hotspots for the Indian diaspora.
NIPL, an arm of the National Payments Council of India (NPCI), has been instrumental in facilitating UPI adoption globally. Formed in April 2020, NIPL has been pivotal in rolling out RuPay and UPI beyond Indian borders, focusing on two key areas - infrastructure development and interoperability.
Infrastructure development involves assisting various countries in creating their independent payment platforms mirroring UPI's capabilities. Simultaneously, NIPL is working towards interoperability, linking India's digital payment ecosystem with various countries to facilitate seamless transactions for Indians traveling abroad.
A milestone moment for UPI's global aspirations arrived when Prime Minister Narendra Modi, during his visit to Paris, announced that Indian tourists could now use UPI for making payments, even from the Eiffel Tower's summit. A similar development occurred with the linkage of cross-border connectivity with Singapore's PayNow, further validating UPI's global appeal.
India's digital payment innovation is gaining worldwide attention, evident from the MOUs signed with 13 countries including Malaysia, Thailand, Philippines, South Korea, and Japan, who wish to adopt UPI for their digital payments. Furthermore, Nepal became the first foreign country to adopt UPI as a payment platform, with various payment options being made operational.
The move to make UPI a global platform has manifold implications. It is a significant step towards accelerating cross-border transactions and fostering financial inclusion. Experts also predict that the global adoption of UPI will boost transaction volumes, further expanding the platform's footprint.
According to Dilip Asbe, Managing Director and CEO of NPCI, the daily transactions on the platform could reach one billion in the next three years as UPI reaches its full potential. As of June 2023, UPI transaction volume stood at 9.33 million with a total value of INR 14.75 lakh crore.
The UPI's journey reflects India's emerging role as a global fintech leader. The platform has transformed how Indians handle personal and merchant payments. Now, as UPI goes global, it is reshaping the world's approach to digital payments, fostering a more interconnected and financially inclusive world. As the UPI wave sweeps across the globe, it signals the dawn of a new era in the digital payment landscape.
