Nepal to become the first country to adopt India’s Unified Payment Interface System

In a major push towards digital payments, Nepal is set to become the first country in the world to adopt India’s Unified Payments Interface (UPI) system. UPI was introduced by India’s government as a means of facilitating digital payments and is one of the largest providers of blockchain-based services in the world. UPI is currently being utilized by over 70 banks and financial institutions across India, its two largest markets, with over 50 million transactions processed on a daily basis. 

NPCI International Payments Limited (NIPL), the international arm of National Payments Corporation of India, has collaborated with payment system operator Gateway Payments Service and Manam Infotech to deploy UPI in Nepal in order to increase interoperable real-time P2P and merchant payment transactions (P2M) in the country. With its adoption into Nepali society, many believe that this will lead to an increase in digitization within Nepal which will further help develop its economy. 

Many see the UPI system as being key to providing financial inclusion, especially in a developing country such as Nepal that is lacking in access to higher education and modern financial services. The UPI system allows users to send money via mobile phones, without the need for a bank account or the need for third parties. This will allow approximately 55% of Nepal’s population to send and receive money, which is key to their development. 

“Digital payments are critical in ensuring people living in remote areas are able to access financial services. We are delighted to join hands with GPS and Manam Infotech to facilitate the deployment of NPCS’ flagship Unified Payment Interface in Nepal,” said Mr. Ritesh Shukla, CEO of NPCI International Payments Limited (NIPL), the international arm of National Payments Corporation of India. “The adoption of UPI by Nepali banks would provide easier and swift transfer service for more people across the country.