- Google Pay and NPCI International have signed a new MoU.
- The objective of this MoU is to extend the influence of the UPI outside India.
- Currently, UPI is officially accessible in more than ten countries.
Google India Digital Services and NPCI International Payments (NIPL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI) have recently signed a Memorandum of Understanding (MoU). The objective of this collaboration is to extend the influence of the Unified Payments Interface (UPI) to countries outside of India.
The collaboration is poised to facilitate the global deployment of UPI-like payment services by Google and NPCI. It is worth noting that presently, UPI is officially accessible in more than ten countries, encompassing Australia, Bhutan, France, Nepal, Oman, Saudi Arabia, Singapore, Sri Lanka, UAE, and others.
Google Pay, NPCI International MoU details
The organisation says that the MoU has three key objectives:
- Broadening UPI usage for travellers: The first objective aims to expand the use of UPI payments for travelers outside of India, providing them with a convenient means to conduct transactions abroad.
- Establishing digital payment systems in other countries: The second objective is to assist in the establishment of UPI-like digital payment systems in other countries.
- Simplifying cross-border remittances: The third objective centers on easing the process of remittances between countries by leveraging the UPI infrastructure.
According to Ritesh Shukla, CEO of NPCI International Payments Limited (NIPL), this strategic partnership is anticipated to not only streamline foreign transactions for Indian travelers but also provide an opportunity to share their knowledge and expertise in operating a successful digital payments ecosystem with other countries.
These outlined objectives are poised to accelerate the global acceptance of UPI. This expansion will enable foreign merchants to access Indian customers, offering an alternative to reliance on foreign currency, credit cards, or forex cards for digital payments.
Users will have the option to use UPI-powered apps from India, including Google Pay. Additionally, the MoU is expected to significantly contribute to simplifying remittances by reducing dependence on conventional money transfer channels.
New changes in UPI
Also, NPCI has implemented new changes in UPI this year. Payment apps such as Google Pay and PhonePe are mandated to verify and keep UPI IDs active, with the NPCI issuing directives for the deactivation of inactive UPI IDs after a year.
Additionally, the RBI has recently raised the UPI transaction limit for hospitals and educational institutions from Rs 1 lakh to Rs 5 lakh, facilitating higher online payments in the wake of the monetary policy committee meeting.
