Google India Digital Services and NPCI International Payments Ltd (NIPL), a subsidiary of the National Payments Corporation of India (NPCI), have signed a Memorandum of Understanding (MoU) to expand the reach of the Unified Payments Interface (UPI) beyond India’s borders. The collaboration aims to simplify cross-border transactions, remittances and digital payments for Indian travelers and merchants.
Expanding UPI for international travelers
The MoU outlines three key objectives, with the first focusing on extending the use of UPI for international travelers, facilitating seamless transactions abroad. The collaboration will enable Indian customers to use UPI-powered apps, including Google Pay, to make payments at foreign merchants, reducing dependence on traditional currency or cards. The partnership will also help foreign merchants gain access to the Indian market, which generates billions of transactions every month through UPI.
Assisting other countries in establishing UPI-like systems
The second objective aims to assist other countries in establishing UPI-like digital payment systems, providing a blueprint for efficient financial transactions. UPI has demonstrated the transformative impact of interoperable, population-scale digital infrastructure on economies, enabling instant, secure and low-cost payments. The collaboration will leverage the expertise and experience of Google Pay and NIPL to help other countries build similar systems that can foster financial inclusion and innovation.
Simplifying cross-border remittances
The third objective seeks to simplify cross-border remittances by leveraging the UPI infrastructure, which allows users to send and receive money using only a virtual payment address (VPA). The collaboration will focus on easing the process of remittances between countries by utilising the UPI infrastructure, thereby simplifying cross-border financial exchanges. The partnership will also explore the possibility of enabling a seamless and more connected international remittance network by further expanding UPI’s cross-border interoperability feature.
Driving technological innovation in the global payments ecosystem
The global expansion of UPI marks a significant milestone in international commerce. It promises a seamless, secure and cost-effective payment experience for merchants and customers worldwide. The collaboration between Google Pay India and NIPL not only benefits Indian travelers but also contributes to a more connected international remittance network.
Deeksha Kaushal, Director of Partnerships at Google Pay India, expressed excitement about supporting NIPL in expanding UPI internationally. “Google Pay has been a proud and willing collaborator to NPCI and the financial ecosystem, under the regulator’s guidance, and this collaboration is another step towards our commitment to making payments simple, safe and convenient,” she said.
Ritesh Shukla, CEO of NIPL, highlighted the strategic partnership’s potential to simplify foreign transactions for Indian travelers. He emphasized the opportunity to extend UPI’s success globally, transforming the digital payments landscape. “We are pleased to team up with Google Pay to propel UPI onto the global stage,” he said.
This strategic partnership reflects the commitment of both entities to drive technological innovation in the global payments ecosystem. As UPI extends its influence beyond India, it sets the stage for a new era of digital payments on a global scale, showcasing the potential for collaboration and technological assistance in transforming payment capabilities worldwide.