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    NIPL To Implement UPI-like Digital Payments In Peru

    The NIPL (NPCI International Payments Limited) has announced a partnership with the Central Reserve Bank of Peru (BCRP) to enable the deployment of a UPI-like real-time payments system in Peru.

    In a press release, NIPL stated that the partnership will enable BCRP to establish a payment platform in Peru, allowing instant payments between individuals and businesses. The new system aims to reduce reliance on cash-based transactions and expand the use of digital payments to Peru’s large unbanked population. It also aims to foster innovation and resilience in the Peruvian payment ecosystem.

    Some context:

    Introducing a digital payments system is a priority for Peru because according to Merchant Machine as of 2023, 57% of Peru’s population remains unbanked. The Peruvian Government has undertaken massive campaigns to remedy this, introducing digital payments and opening bank accounts for citizens without prior consent during the pandemic.

    Mr. Julio Velarde, Governor of the BCRP said, “We believe this marks a significant step in strengthening and modernizing our payments 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. We also consider that this new infrastructure will play a fundamental role in fostering innovation and in allowing new participants to enter the Peruvian ecosystem. This will undoubtedly offer new and accessible payment services to everyone, especially the unbanked population in Peru, and complement the existing payments industry.”

    Mr. Ritesh Shukla, CEO of NPCI International, said, “Our partnership with the BCRP aims to strengthen Peru’s financial infrastructure, to foster economic growth. We will be working together to address our 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. It also reflects on our commitment towards advancing digital public goods across the globe.” RBI’s annual report revealed that it aims to work with the NIPL to expand UPI to 20 countries by 2028-29.

    Recently, the NIPL also partnered with the Bank of Namibia to enhance Namibia’s financial infrastructure by developing a payment system similar to UPI. Shukla spoke of the collaboration stating, “By enabling this technology, the country will gain sovereignty in the digital payments landscape and stand to benefit from enhanced payment interoperability and improved financial access for underserved populations.”

    Before this, NIPL also partnered with banks and merchants in several countries to set up UPI-powered transactions at select merchant locations in a bid to benefit Indians traveling abroad, including the United Arab Emirates, Singapore, Nepal, and Bhutan.

    In January this year, the NIPL signed an agreement with Google Pay to expand UPI acceptance in various countries to ease the process of cross-border remittances and reduce dependence on conventional money transfer channels.

    Also Read:

    The post NIPL To Implement UPI-like Digital Payments In Peru appeared first on MEDIANAMA.

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