The Unified Payments Interface (UPI), India’s pioneering real-time payment system, has begun an aggressive worldwide growth strategy, making UPI services available in Sri Lanka and Mauritius. The announcement, announced on February 12th, 2024, marks the beginning of a new age in digital payments, expanding UPI’s international impact following its recent launch at France’s renowned Eiffel Tower.
UPI Services are now available in Sri Lanka and Mauritius
This historic accomplishment has enormous promise for digital payment enthusiasts, ensuring a smooth transaction experience for consumers travelling across India, Sri Lanka, and Mauritius. With the introduction of UPI services, Indian citizens visiting these island nations may say goodbye to bulky wallets and instead use their UPI-enabled applications for direct payments.
Citizens of Sri Lanka and Mauritius travelling to India, on the other hand, can benefit from the convenience of contactless payments, which eliminate the need for currency exchange or carrying physical cash, boosting the whole travel experience while strengthening cultural and economic relations.
Beyond tourism, the implementation of UPI in Sri Lanka and Mauritius has significant implications for financial inclusion and commercial facilitation. By making it more accessible to individuals and organisations in these countries, UPI hopes to drive digital adoption and empower previously underrepresented demographics.
Furthermore, the streamlining of cross-border transactions has the potential to increase trade volume between India and its island equivalents, laying the groundwork for stronger strategic collaboration in the digital payments space.
UPI’s functioning procedure in Sri Lanka and Mauritius requires users to link their bank accounts to UPI-enabled apps provided by local banks in partnership with Indian Payment Service Providers (PSPs). Users can make quick transfers using common technologies like virtual payment addresses (VPAs) or QR codes, replicating the ease of domestic transactions in India.
This transformative project was conducted through concerted efforts by the Indian government, central banks, and PSPs from all three countries, demonstrating the collaborative spirit that drives this massive endeavour. Furthermore, the introduction of RuPay card services in Mauritius allows local banks to issue cards that facilitate cross-border transactions, hence increasing the accessibility and ease of digital payments.
Looking ahead, UPI’s expansion into Sri Lanka and Mauritius represents a significant step towards developing a worldwide digital payments infrastructure. As this programme progresses, it is expected to spark additional international collaborations and encourage emulation among other countries looking to implement quick payment options.
Overall, incorporating comments from important stakeholders, including government officials and industry experts, provides a more nuanced understanding of the difficulties and opportunities related to UPI’s globalisation.