In a landmark development for global financial technology, NPCI International Payments Ltd. (NIPL) and the Reserve Bank of Peru (BCRP) have announced a collaboration to implement a Unified Payment Interface (UPI)-like real-time payments system in Peru. This makes Peru the first South American country to adopt UPI technology, which has revolutionized digital payments in India and beyond.
NIPL, a subsidiary of the National Payments Corporation of India (NPCI), has been expanding its international presence. This venture in Peru follows successful UPI implementations in countries like France, Sri Lanka, Singapore, and Mauritius. The partnership with Peru is a significant step in NPCI’s strategy to promote real-time payments globally, showcasing the flexibility and adaptability of UPI technology in diverse markets.
The adoption of a UPI-like system is expected to enhance Peru’s financial ecosystem, aiming to boost economic growth and improve financial inclusion. The new system will enable quick transactions between consumers and institutions, making the financial ecosystem more efficient. Through this partnership, BCRP will gain the technical expertise needed to establish a reliable and efficient real-time payment system.
NIPL and BCRP will develop a real-time payment system tailored to Peru’s needs, utilizing UPI’s advanced technology. The system will support peer-to-peer transfers, merchant payments, bill payments, and other financial transactions, fostering a more dynamic and diverse economy.
Before this venture in Peru, NPCI had made significant strides in introducing UPI technology internationally. In January 2024, NPCI launched the UPI-PayNow linkage for direct remittances between India and Singapore. This was followed by a partnership with Lyra in February to facilitate UPI acceptance in France, and UPI services were also extended to Sri Lanka and Mauritius the same month, further demonstrating UPI’s global appeal and versatility.
In addition to the Peru project, NPCI plans to introduce India’s RuPay service in the Maldives. This move is expected to strengthen the Maldivian rufiyaa (MVR) and enhance the country’s payment infrastructure. RuPay, developed by NPCI, is India’s leading global card payment network, widely accepted across ATMs, POS devices, and e-commerce platforms in India.
The implementation of UPI technology in Peru will bring several technological advancements, including QR code payments, biometric authentication, and AI-driven fraud detection to ensure secure and efficient transactions. The collaboration will also focus on promoting sustainable financial practices by reducing cash reliance and enhancing digital financial literacy among Peruvians.
Despite the promising outlook, implementing a UPI-like system in Peru presents challenges, such as ensuring interoperability with existing financial systems, addressing cybersecurity concerns, and achieving widespread user adoption. NPCI and BCRP will need to collaborate closely to overcome these challenges and successfully deploy the new payment system.
The partnership between NIPL and the Reserve Bank of Peru to implement a UPI-like real-time payments system marks a historic development in the global financial landscape. By adopting this innovative technology, Peru is set to enhance its financial infrastructure, drive economic growth, and set a precedent for other South American countries. As NPCI continues to expand globally, the success of this partnership will demonstrate UPI technology’s transformative potential in fostering financial inclusion and economic resilience worldwide.