NPCI International Payments Limited (NIPL), the international subsidiary of the National Payments Corporation of India (NPCI), has signed a landmark agreement with the Central Reserve Bank of Peru (BCRP) to establish a real-time digital payments system in Peru, modeled on India’s highly successful Unified Payments Interface (UPI).
This strategic partnership positions Peru as the first South American nation to integrate NPCI’s cutting-edge payment technology. It also marks NIPL’s second collaboration with a central bank to extend the UPI framework globally, following a similar agreement with the Bank of Namibia last month.
Ritesh Shukla, CEO of NPCI International, expressed enthusiasm about the collaboration, stating, “Our partnership with BCRP aims to strengthen Peru’s financial infrastructure and foster economic growth. Together, we will promote digital payments, financial inclusion, cost optimisation, and transparency in the payment landscape. This initiative is designed to be scalable and adaptable to future technological advancements and market demands.”
The new system will enable the BCRP to facilitate instant payments between individuals and businesses within Peru, significantly expanding the reach and adoption of digital payments among the country’s large unbanked population. The partnership underscores a shared commitment to modernising Peru’s payment infrastructure and enhancing financial inclusion.
Julio Velarde, Governor of the BCRP, highlighted the importance of the initiative, saying, “This agreement marks a significant step in strengthening and modernising our payments system, with the aim of expanding access to digital payments in Peru. The support from the Reserve Bank of India (RBI) has been crucial. BCRP is committed to promoting financial inclusion, security, and efficiency, and to introducing new use cases in digital payments.”
The RBI and NPCI are actively expanding the reach of UPI to other global regions. According to the RBI’s annual report for 2023-24, the central bank and NPCI plan to introduce UPI in 20 countries by 2028-29, with an initial timeline set for 2024-25.
Currently, UPI systems are operational in several countries including France, Sri Lanka, Singapore, the UAE, Bhutan, Nepal, and Mauritius. In India, the UPI system continues to achieve remarkable milestones, with a record 14.04 billion transactions processed in May, up from 13.3 billion in April.
This partnership not only reinforces the global reputation of India’s digital payment ecosystem but also paves the way for broader financial inclusion and economic development in Peru.
