New Delhi: In a landmark move for digital payment systems, the National Payment Corporation of India (NPCI) has announced the extension of the Unified Payment Interface (UPI) services to Nepal, marking a significant step towards financial integration in the region. This development promises to simplify transactions for Indian tourists in Nepal, who can now make payments directly using UPI without the need for currency exchange.
The collaboration between NPCI International Payments (NIPL) and Fonepay Payment Service, Nepal’s premier payment network, has culminated in the introduction of UPI-based transactions in Nepal. The agreement, signed in September of the previous year, has paved the way for seamless and secure digital payments across borders.
Phase One: UPI Goes Live in Nepal
The initial phase of this initiative has been rolled out, enabling Indian tourists to conduct swift and secure transactions at a multitude of Nepali merchant locations. By scanning QR codes, users can utilize their UPI-enabled apps to facilitate payments, integrating merchants within the Fonepay network into this digital ecosystem.
Ritesh Shukla, Chief Executive of NIPL, emphasized the broader implications of this venture, stating, “This initiative not only reflects our commitment to innovate in the digital payments sector but also our dedication to creating new avenues for trade and strengthening relations between the two countries.”
Economic and Touristic Synergy
The integration of UPI into Nepal’s payment landscape is anticipated to bolster economic ties, commerce, and tourism between India and Nepal. Divas Kumar, Chief Executive of Fonepay, expressed confidence in the cross-border payment solution, asserting that it will “significantly improve economic relations, commerce, and tourism between the two nations.”
The move is expected to enhance the convenience of transactions for Indian visitors, fostering a more interconnected and economically robust relationship between the neighboring countries. As UPI’s reach extends beyond domestic borders, it stands as a testament to the growing influence of digital payments on the global stage and the potential for greater financial inclusion and economic prosperity in the region.
