India's NPCI partners with Peru's Reserve Bank to develop UPI-like real-time payments system

NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) today announced a partnership to introduce India's UPI-like real-time payments system in Peru. 

The collaboration makes Peru the first country in South America to adopt the renowned UPI technology from India.

The partnership aims to create a reliable and efficient payment platform that facilitates instant payments between individuals and businesses, reducing the dependence on cash transactions and enhancing digital payment usage among Peru’s unbanked population.

Strengthening Peru’s financial infrastructure

This strategic partnership represents a major step in modernizing Peru’s financial infrastructure. The introduction of this innovative system is expected to boost economic growth, promote financial inclusion, and improve transparency in the payment landscape.

Ritesh Shukla, CEO of NPCI International, said, “Our partnership with the BCRP aims to strengthen Peru’s financial infrastructure, to foster economic growth."

He said both countries will work together to address the common objective of promoting digital payments, financial inclusion, cost optimization, and transparency in the payment landscape, "with scope for further scalability and adaptability, to embrace future technological advancements and market demands."

Enabling instant payments and reducing cash dependency

The new real-time payment platform will provide numerous benefits. It will enable instant payments, reduce cash dependency, and expand digital payment accessibility, particularly for Peru’s large unbanked population.

The system's open banking ethos promotes greater connectivity and interoperability with both domestic and international payment networks.

“We believe this marks a significant step in strengthening and modernizing our payment system, aiming to expand access to digital payments in Peru. The support of the Reserve Bank of India has been a cornerstone of this agreement," said Julio Velarde, Governor of the BCRP.

Focused on expanding UPI's presence

The partnership with Peru is part of NPCI’s broader strategy to expand its successful UPI technology internationally. NIPL has previously entered into similar agreements, such as with the Bank of Namibia for a UPI-like system in Africa.

Other notable international collaborations include the UPI-PayNow linkage between India and Singapore, and UPI acceptance agreements in France, Sri Lanka, and Mauritius. 

NIPL aims to transform global payment systems through technology and innovation, enhancing payment capabilities worldwide.