The Global Payments arm of the National Payments Corporation of India, NPCI International Payments (NIPL), will enable the Unified Payments Interface (UPI) platform in Nepal. As part of this initiative, NIPL has partnered with Gateway Payments Service (GPS), a payment systems operator in Nepal and the Bengaluru-based Manam Infotech.
UPI will be deployed in Nepal as a digital public benefit to promote interoperable real-time transactions between persons and merchants (P2P/P2M). For the first time, Nepal will adopt UPI as a payments platform outside of India. This will not only enable real-time payments between Nepal and India as well as enable financial inclusion but also lay the groundwork for P2P remittances for Nepalese and Indians.
Approximately 31% of India’s GDP will be accounted for by UPI transactions in 2021, equivalent to $940 billion in commerce. Nepal has a population of about 3 crores with about 45% of the banked, and mobile penetration of over 135% with 65% of the population owning smartphones. ‘We expect UPI in Nepal to play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society,’ said GPS CEO Rajesh Prasad Manandhar.
NIPL’s CEO Ritesh Shukla disclosed that the company is considering collaborating with overseas partners to deploy UPI-like services, conduct cross-border transactions, and utilize locally developed technologies for digital payments. According to Shukla, this initiative is proof of NIPL’s technological capabilities and vision of scaling its unique offerings globally.
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