Kathmandu: NPCI International Payments Limited (NIPL), the International arm of National Payments Corporation of India has joined hands with Gateway Payments Service Pvt Ltd, authorized Payment System Operators in Nepal, and Manam Infotech Private Limited.
A memorandum of understanding was signed to deploy Unified Payments Interface (UPI) in Nepal for the larger Digital Public Good and to bolster interoperable real-time Person to person (P2P) and Merchant payment transactions (P2M) in Nepal.
Nepal shall be the first country outside of India to adopt UPI as the payments platform driving the digitalization of cash transactions and furthering the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank.
This collaboration will enable the last-mile consumers in Nepal to reap the benefits of an open interoperable payments system driving immediate payment transfers between bank accounts and merchant payments in real-time, stated a press release issued by NPCI International Payment Limited.
It will also enable the way forward for real-time cross-border P2P remittances between Nepal and India.
UPI is amongst the most successful real-time payments (RTP) systems globally, providing – simplicity, safety, and security in person to person (P2P) and person to merchant (P2M) transactions in India. In 2021, UPI enabled 39 Billion financial transactions amounting to commerce worth USD 940 Billion, which is equivalent to approximately 31% of India’s GDP.
UPI’s real-time payment infrastructure will help catalyze the process of financial inclusion in Nepal and will also create more opportunities for businesses. It will help modernize Nepal’s digital payment infrastructure and bring the convenience of digital payments to citizens of Nepal.
GPS CEO Rajesh Prasad Manandhar said, “The same UPI service has created a significant positive impact in India in terms of the country’s digital payment transformation. We expect UPI in Nepal would play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society.”
NIPL CEO Ritesh Shukla said, “We are delighted to join hands with GPS and Manam Infotech to facilitate the deployment of NPCI’s flagship Unified Payments Interface in Nepal. At NIPL, we are committed to transforming payments by taking our robust payments solutions to global markets and collaborating with local payment system operators. We are excited about this partnership, which will enable consumers within Nepal transact swiftly using state-of-the-art UPI platform and deliver a seamless user experience. We are confident that this initiative will stand as a testimony to NIPL’s technological capabilities and vision of scaling our unique offerings globally."
Director of Manam Naga Babu Ramineni said, “Manam has always been part of major digital transformation across the various regions of the world, we believe this partnership will eliminate all the barriers of payment transformation within Nepal and across the border thereby transforming the regional economy.”
Nepal has a population of ~ 30 million with around 45% banked. Mobile penetration of over 135% with 65% of the population using smart phones provides bedrock for seamless replication of the digital revolution in India to be replicated in Nepal.
Over the next few months, all three companies will work closely together to deploy Unified Payments Interface in Nepal along with all the functionalities and features presently available in India.
NIPL, being an internationally focused subsidiary of NPCI, is looking to drive deep collaboration with overseas partners in the areas of UPI like deployment, cross-border remittance, acceptance, using indigenously developed technologies in digital payments.
Gateway Payment Service (GPS) is a payment system operator (PSO) licensed by Nepal Rastra Bank (central bank of Nepal). GPS has been issued with an open PSO license to operate all types of payment and settlement-related technology and interfaces including payment gateway (Domestic and International), Unified Payment Interface and Switch and Card Transaction, among others.