NPCI signs MoU with Bank of Namibia for the first time at international level to develop payment system similar to UPI

NPCI Signs MoU with Bank of Namibia to Develop Payment System Similar to UPI

NPCI's International Expansion with Namibia Partnership

NPCI International Payments Limited (NIPL), the international division of the National Payments Corporation of India (NPCI), has taken a significant step in its international expansion by signing a Memorandum of Understanding (MoU) with the Bank of Namibia. This contract represents UPI's first international agreement, with NPCI set to assist Namibia in building an instant payments system similar to India's Unified Payments Interface (UPI).

NPCI signs MoU with Bank of  Namibia for the first time at  international level to develop  payment system similar to UPI

Purpose of the MoU and Goals for Namibia

The goal of this partnership is to achieve digital financial inclusion in Namibia by implementing a new digital payment system for person-to-person and merchant payment transactions in real-time. This system is expected to provide Namibia with a robust and efficient payment infrastructure similar to India's successful UPI model.

The Bank of Namibia aims to achieve full interoperability of payment instruments by 2025, modernize its financial sector, and ensure a secure and efficient national payments system. This collaboration with NPCI is an essential step toward achieving these objectives.

Recent UPI Developments and International Linkages

The MoU with the Bank of Namibia follows other significant UPI developments in international markets:

• UPI-PayNow linkage in Singapore: Announced in January 2024, this linkage allows seamless cross-border transactions between UPI in India and PayNow in Singapore.
• UPI services in France: In February 2024, NPCI launched UPI services with Lyra in France, marking another milestone in UPI's global reach.
• UPI services in Sri Lanka and Mauritius: Also launched in February 2024, these services further expand UPI's international footprint.

Unified Payments Interface (UPI) and Its Impact

UPI, launched in 2016 with 21 member banks, has become a cornerstone of India's digital payment ecosystem. It allows users to power multiple bank accounts, access multiple banking features, and perform seamless fund routing and merchant payments through a single mobile application. Some of the top UPI apps include PhonePe, Paytm, Google Pay, Amazon Pay, and BHIM app.

UPI's growth has made it the largest system operated by NPCI, alongside other significant systems like the National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar Enabled Payment System (AePS), Bharat Bill Payment System (BBPS), and RuPay.

Conclusion

The MoU between NPCI International Payments Limited and the Bank of Namibia is a significant step toward establishing a UPI-like payment system in Namibia. This partnership reflects the international appeal of UPI and its potential to drive digital financial inclusion in other countries. As NPCI continues to expand its global reach, collaborations like this will play a crucial role in promoting digital payments and modernizing financial sectors worldwide.