NPCI International Payments Limited (NIPL) and Fonepay Payment Service have announced that the Unified Payment Interface (UPI) is available for transactions As per the information detailed in the press release, NIPL, the international arm of the National Payments Corporation of India (NPCI) and Fonepay Payment Services, one of Nepal’s payment networks, provided access to YPI for cross-border transactions between the two regions. The announcement follows the presentation event at Global Fintech Fest 2023 in India in September, with both organisations being now fully operational and ready to facilitate QR-code-based person-to-merchant (P2M) UPI transactions between India and Nepal.

NIPL – Fonepay Payment Service collaboration objectives During the first phase of their partnership, NIPL and Fonepay Payments Service intend to enable Indian consumers to make instant, secure, and convenient UPI payments across business stores in Nepal by leveraging UPI-powered apps. Additionally, merchants acquired by Fonepay Network’s participating members can accept UPI payments from Indian customers. Through this digital connection, the two entities aim to solidify the people-to-people ties between the two countries, with the integration of payment systems by NIPL and Fonepay supporting cross-border transactions between citizens.

The partnership between the two payment system operators assists in the advancement of digital connection and collaboration between the nations. According to NIPL’s officials, the initiative supports the entity’s commitment to improving the digital payments space, while also reflecting its dedication to developing additional avenues for trade, strengthening the bond between the two countries. Moreover, the collaboration intends to behave as a catalyst for increased financial inclusion and economic prosperity in the region. Representatives from Fonepay underlined that the cross-border payment solution is set to enhance economic ties, commerce, and tourism between India and Nepal, working towards promoting economic prosperity and progress.

The simplified cross-border payment solution aligns with the organisation’s objective to drive a digital economy, with it anticipating a positive effect on both local and regional economies. NIPL’s past announcements As the international arm of NPCI, NIPL aims to extend the capabilities of the former’s real-time payment system, UPI, and card scheme, RuPay, outside of India. NPCI developed its product and technological features in the domestic market by transforming the payment segment in the region.

By leveraging its insights and experience, the organisation can support countries that want to establish a real-time payment system or domestic card scheme, with its being able to offer technological assistance through licencing and consulting. This allows them to build real-time payment systems that meet the evolving needs of global businesses. In addition to the current announcement, at the beginning of March 2024, NIPL signed a Memorandum of Understanding (MoU) with Greece-based Eurobank to optimise cross-border payments using a UPI platform. The MoU was set to improve the overall process of international money transfers, with both organisations being expected to focus on simplifying remittances from Greece to India securely and effectively while maintaining compliance with the laws and regulatory requirements of both regions.

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