Imagine Unified Payments Interface (UPI) as a real-time payment system that enables people transfer money, make successful bill payments, and buy something online without needing to input your bank's card each time? That's the best definition for India's UPI.
UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that enables instant money transfers between bank accounts via mobile devices. It allows users to send or receive money, pay bills, and make online purchases without needing to enter bank details each time.
This UPI has seen significant recognition around the world. Indian government's been working so hard to make sure their homegrown digital payments system get adopted around the world. As announced by Reuters, the agency handling the digital payment infrastructure in India is eying Africa and South America as their next push.
According to a source familiar with the matter, NPCI has discussed with at least 20 countries in Africa and South America to help them develop real-time payment systems like to UPI. In fact, two payment systems are expected to launch by early 2027, with Rwanda being the only country where serious discussions have happened.
Currently, the India's Unified Payments Interface (UPI) is available in several countries outside India through collaborations and partnerships with foreign banks and financial institutions. These countries include: Singapore, Nepal, Oman, United Arabic Emirate (UAE), Bhutan and France.
Ritesh Shukla, CEO of NPCI International Payments Ltd. (NIPL), confirmed that 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.
UPI's coming to Africa
India, through NPCI International Payments Ltd. (NIPL) - a quasi-regulator under the central bank and a public non-profit organisation for retail payment systems in India, has announced that it's in discussion with several African countries to assist in developing a digital payments system based on its Unified Payments Interface (UPI). Two payment systems are expected to be launched by early 2027, with Rwanda being the primary country where significant discussions have taken place.
Although, this is not the first time NPCL is making moves into African markets. In June 2024, the Bank of Namibia (BoN) signed an agreement with NPCI International Payments Limited (NIPL) to create a secure national payment system. This system will be modeled after India's Unified Payments Interface (UPI) and utilize the same technology.
More so, in May same year, Ghana signed a deal with the India government to integrate UPI on its Ghana Interbank Payment and Settlement Systems (GHIPSS) for six months to help Ghanians facilitate low-cost, instant interbank fund transfers. Similarly in South America, the NIPL signed deals with the central banks of Peru and Namibia to help them build real-time payment systems similar to UPI in earlier this year.
About UPI
Unified Payments Interface (UPI), India's most popular digital payments mode, whose monthly volumes surged 41% to nearly 15 billion transactions in August, is an instant payment platform that enables interbank transactions through mobile devices seamless and instant. NPCI, a quasi-regulator under the central bank and also a public non-profit organisation for retail payment systems in India, runs UPI in the country.
With UPI, Users can access multiple bank accounts, conduct fund transfers, and make merchant payments with a single mobile application and two-factor authentication.
In addition to helping countries around the world in building payment infrastructures, NIPL also dedicates itself for connecting/linking UPI with other countries real-time payment systems, like Singapore's PayNow and partnership with Mashreq Bank’s NEOPAY that helps facilitate the acceptances of Rupee payments from India Nationals by merchants in UAE.
Currently, there are seven such links and connections, with more initiatives and developments to come. To enhance this expansion, the NPCI International Payments Ltd plans to double its 60-member workforce by March 2025, deploying more staff/employees overseas more than the few executives that are currently working in Singapore and the Middle East.
Meanwhile, it's important to note that the India-homegrown UPI may face competition races from several well-known payment infrastructures in Africa and South America. M-Pesa, for instance, is a major player in Kenyan and Tanzanian financial market/landscape that offers a countless range of mobile money services such as money transfers, cross-border remittance, telecom, bill payments, savings, and loans in East Africa countries.
Flutterwave, which operates in over 30 African countries including Nigeria in the west and Kenya from the east, facilitates cross-border transactions between the diaspora and African countries. Paystack, a another Nigerian fintech company UPI may be competing with in Africa and the payment company recently announced the launch of its Virtual Terminal in some African countries, including Côte d’Ivoire, Ghana, Kenya, and South Africa.
So, what do you think about India's UPI coming to Africa and South America amidst all these big sharks? Do you think it’s a good idea, or a bad one? Tell us your thoughts in the comments below.
