India has internationalized its Made In India- Unified Transaction Interface (UPI). Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI). The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.
Growth of UPI In India
From 93,000 transactions in August 2016 valued at ₹30 million, UPI generated 800 million transactions in March 2019 with a total value of ₹1330 billion. By late August 2020, with 18 billion annual transactions, UPI surpassed American Express in India. NITI Aayog predicted that UPI will also surpass Visa and Mastercard by 2023. UPI took three years to reach 1.14 billion in October 2019 while by the end of October 2020, the payment system registered 2.07 billion transactions. In 2020, $457 billion worth of value was moved on UPI platform which was 15% of India’s GDP. As of August 2021, UPI forms 10% of all retail payment in India.
UPI’s International Growth
Around 777 million Indian consumers shop across the border in 2021. To make ease of payment, NPCI International Payments Limited (NIPL) signed memorandum of understanding (MoU) with UK based PPRO Financial on 17 November 2021 to expand the acceptance of UPI into foreign markets especially in China and United States which accounts for half of all international transaction coming from India.
On 13 July 2021, UPI was made available to Bhutan through the Royal Monetary Authority of Bhutan. Bhutan became the first country to accept UPI transactions through the BHIM app.
On 26 January 2022, UK based fintech startup Transact365 enabled UPI for global merchants with a real time currency conversion facility that will help them do business in India independent of local presence.
On 7 February 2023, PhonePe announced extending support of UPI for international payments in UAE, Singapore, Mauritius, Nepal and Bhutan.
Users will be able to pay in international currency directly from Indian bank accounts. RBI announced extending UPI payment facility for inbound travelers from G20 countries.
From 30 April 2023, international mobile numbers from Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE, and UK will be able to access UPI transaction facility. It will be available through non-resident external (NRE) and non-resident ordinary (NRO) accounts.
So, you can say that in the future you can initiate transactions anywhere in the world without worry. We hope that UPI will greatly benefit the world just as it has benefited India. UPI has the capability of becoming a gift for the world by India.
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