After UAE, NPCI launches UPI in Nepal; Users can san QR codes to make payments

In a significant move towards enhancing digital payment infrastructure, NPCI International Payments Ltd (NIPL), the international arm of National Payments Corporation of India (NPCI), and Fonepay Payment Service Ltd, Nepal's largest payment network, have joined forces.

The partnership heralds the introduction of Unified Payment Interface (UPI) for cross-border transactions between India and Nepal, marking a revolutionary shift in the way payments are made across borders.

UPI goes live

Following the announcement at the Global Fintech Fest 2023 in India, the service is now fully operational. This development enables Indian consumers to use their UPI-enabled apps for QR-code-based person-to-merchant (P2M) transactions in Nepal.

In its initial phase, the service aims to provide a seamless, secure, and instant payment option for Indians visiting Nepal, covering various business outlets across the country.

Strengthening bonds

The integration of UPI into Nepal's payment ecosystem is more than just a technological upgrade; it's a step towards strengthening the deep-rooted ties between the two neighbouring nations.

Ritesh Shukla, Chief Executive Officer (CEO) of NIPL, said, “We are elated to join hands with Fonepay to enable UPI payments in Nepal. This initiative not only signifies our commitment to innovating the digital payments space but also reflects our dedication to creating new avenues for trade, strengthening the bond between the two nations. We envision this partnership as a catalyst for greater financial inclusion and economic prosperity in the region, and we are excited to embark on this journey of transformation together.”

What did the Fonepay CEO say about the partnership? 

Chief Executive Officer of Fonepay, Diwas Kumar, said, “I am confident that this cross-border payment solution will significantly improve economic ties, commerce, and tourism between the two nations, eventually promoting economic prosperity and progress. The seamless cross-border payment solution aligns with our commitment to drive the digital economy to the greatest height, and we anticipate a positive ripple effect on both local and regional economies."

A vision for the future

The collaboration between NIPL and Fonepay is not just a milestone for India-Nepal relations but also a model for future digital payment integrations globally. NIPL, with its expertise in deploying successful real-time payment systems like UPI and card schemes like RuPay outside India, and Fonepay's robust payment network in Nepal, set a precedent for how technology can bridge financial gaps and enhance cross-border economic activities.