The National Payments Corporation of India (NPCI) announced on Thursday that Nepal would be the first foreign country to adopt India’s UPI system, paving the way for the country’s digital economy to transform.
NPCI International Payments Ltd (NIPL), the company’s international arm, has partnered with Gateway Payments Service (GPS) and Manam Infotech to provide the services in Nepal.
“Nepal will be the first country outside of India to adopt UPI as the payments platform, accelerating the digitization of cash transactions and advancing the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank,” NPCI stated in a statement.
In Nepal, Gateway Payments Service is the authorized payment system operator, and Manam Infotech will implement the Unified Payments Interface (UPI).
According to the NPCI statement, this collaboration is expected to benefit Nepal’s larger digital public good and strengthen interoperable real-time person-to-person (P2P) and person-to-merchant (P2M) transactions.
Additionally, it will likely enable Nepal’s last-mile consumers to benefit from an open, interoperable payments system that allows real-time payment transfers between bank accounts and merchant payments.
UPI’s real-time payment infrastructure will help accelerate the process of financial inclusion in Nepal, NPCI said. It will also expand business opportunities. It will contribute to the modernization of Nepal’s digital payment infrastructure and provide citizens with the convenience of digital payments.
UPI, the most successful real-time payment system in the world, provides simplicity, safety, and security in peer-to-peer and peer-to-merchant transactions in India. Nepal has a population of approximately 30 million (3 crores), with approximately 45 percent of the population is banked. Over 135 percent mobile penetration, with 65 percent of the population owning smartphones, lays the groundwork for a seamless replication of India’s digital revolution in Nepal, according to NPCI.