The National Payments Corporation of India (NPCI) has marked a significant milestone in its mission to globalise the Unified Payments Interface (UPI) by signing interoperability agreements with central banks and payment networks in 12 additional countries. This move will extend UPI acceptance to more than 30 international markets, making it one of the most widely accepted digital payment systems globally.
The newly established corridors cover a wide geographical area, including Southeast Asia, the Gulf, East Africa, and parts of Europe. Indian travellers will now be able to pay at local merchants simply by scanning domestic QR codes from any UPI app. This development is expected to boost the tourism industry in India, as well as enhance the overall travel experience for Indians.
For the receiving countries, these agreements will open a low-cost, real-time rail for remittances into India, which is the world's largest remittance market, with annual inflows exceeding $120 billion. This will not only benefit Indian expatriates but also provide a more efficient and cost-effective way for individuals and businesses to send and receive money across borders.
Bankers and industry experts believe that the bigger story here is the soft power of UPI's architecture, which is becoming the de facto template for instant payment systems across the Global South. The NPCI's efforts to globalise UPI are likely to have a lasting impact on the digital payments landscape, not just in India but also in other emerging economies.
As India continues to push the boundaries of digital payments, the globalisation of UPI is a testament to its success and the country's commitment to becoming a leader in the fintech space. With its vast network of merchants and users, UPI is poised to become a key driver of economic growth and development across the world.
