Peru Adopts India's UPI Technology to Boost Financial Inclusion
Peru Leads South America with Innovative UPI-Like Payment System in Landmark NIPL Partnership
6 June 2024
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Neelesh Bachani
1. NPCI International Payments Limited (NIPL) collaborates with the Central Reserve Bank of Peru (BCRP) to implement a UPI-like payment system, marking the first such initiative in South America to enhance financial inclusion and innovation.
2. The introduction in Peru follows UPI's international success, including the launch of UPI-PayNow for remittances from Singapore, and partnerships in France, Sri Lanka, and Mauritius, highlighting UPI's growing global footprint.
3. The new payment system in Peru is designed to benefit the unbanked population, offering accessible and diverse digital payment solutions, supported by scalable and adaptable technology for future advancements.
NPCI International Payments Limited (NIPL) has partnered with the Central Reserve Bank of Peru (BCRP) to introduce a Unified Payment Interface (UPI)-like payment system in Peru, marking the first implementation of this technology in South America. This collaboration aims to transform Peru’s payment landscape by offering innovative, accessible payment solutions that cater especially to the unbanked population. Julio Velarde, Governor of the BCRP, highlighted this new infrastructure's pivotal role in promoting financial inclusion and fostering innovation within the country.
Governor Velarde emphasized that the Reserve Bank of India's support has been crucial in achieving this milestone. He expressed confidence that this new payment system will complement Peru’s financial ecosystem by enabling new participants to enter the market and provide diverse payment services. The initiative is expected to significantly enhance the reach of digital payments, making them more accessible to all segments of society.
Ritesh Shukla, CEO of NIPL, shared his enthusiasm for the partnership, stating that it aims to strengthen Peru's financial infrastructure and foster economic growth. Shukla noted that the collaboration would promote digital payments, financial inclusion, cost optimization, and transparency in Peru’s payment landscape. He also mentioned that the system is designed to be scalable and adaptable to future technological advancements and market needs.
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This development is part of a broader international expansion strategy for UPI. Earlier in the year, NPCI launched UPI-PayNow, facilitating remittances from Singapore to India. This initiative has opened new avenues for financial transactions between the two countries, enhancing the ease of business and personal financial management for individuals and enterprises alike.
In addition to its success in Singapore, NPCI has made significant strides in Europe. In February, NIPL partnered with Lyra, an e-commerce and proximity payments company, to enable UPI acceptance in France. This partnership aims to streamline cross-border payments and provide a seamless transaction experience for Indian tourists and residents in France.
Further extending its global reach, UPI services were recently launched in Sri Lanka and Mauritius. These developments underscore the growing recognition and adoption of UPI technology worldwide. As UPI continues to expand its footprint, it is set to revolutionize the global payment landscape by offering secure, efficient, and user-friendly payment solutions across various markets.
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