India’s UPI forays into Nepal with QR-code-based UPI transactions

By Gloria Mathias

NPCI International Payments (NIPL), the international arm of the National Payments Corporation of India (NPCI), and Fonepay Payment Service, Nepal’s payment network, have announced that the Unified Payment Interface (UPI) is now live for cross-border transactions between India and Nepal.

Following the unveiling event at Global Fintech Fest 2023 in India in September, both entities are fully operational and ready to facilitate QR-code-based person-to-merchant (P2M) UPI transactions between the two countries.

In its first phase, this partnership will enable Indian consumers to make instant, secure, and convenient UPI payments across various business stores in Nepal by using UPI-enabled apps. Merchants acquired by the participating members of the Fonepay Network can seamlessly accept UPI payments from Indian customers.

This digital connection serves to reinforce the deep-rooted people-to-people ties between the neighbouring nations, India and Nepal. The integration of payment systems by NIPL and Fonepay marks a shift in cross-border transactions between citizens of both countries, ushering in a new era of convenience and efficiency. This milestone signifies a successful partnership between two payment system operators and a new era of digital connection and collaboration between the two friendly nations.

Ritesh Shukla, Chief Executive Officer of NIPL, said, “We are elated to join hands with Fonepay to enable UPI payments in Nepal. This initiative not only signifies our commitment to innovating the digital payments space but also reflects our dedication to creating new avenues for trade, strengthening the bond between the two nations. We envision this partnership as a catalyst for greater financial inclusion and economic prosperity in the region, and we are excited to embark on this journey of transformation together.”

Chief Executive Officer of Fonepay, Diwas Kumar, said, “I am confident that this cross-border payment solution will significantly improve economic ties, commerce, and tourism between the two nations, eventually promoting economic prosperity and progress. The seamless cross-border payment solution aligns with our commitment to drive the digital economy to the greatest height, and we anticipate a positive ripple effect on both local and regional economies.”