• Peru becomes the first country in South America to replicate Indian UPI technology.

• This comes after a similar launch in Namibia, France, Sri Lanka, Singapore, and Mauritius by the UPI.

Its fellow South American nation Peru plans to introduce an instant payment system on the lines of India’s UPI soon. This emanates from a partnership between NIPL and the BCRP in issuing of international payment system.

NIPL’s Global Expansion

The body is NIPL, the international arm of the National Payments Corporation of India or NPCI, and true to its success in the original home market, it is replicating the same Unified Payments Interface or UPI model in Peru. This is a similar arrangement that NIPL made with the BoN when it partnered with it in May to work on an instant payment system.

Benefits for Peru

The new system which has been introduced by NIPL is headed by its CEO, Mr. Ritesh Shukla, and this he said will bring benefits to Peru. He said that the partnership with the BCRP has the objective of increasing the competitiveness of the Peruvian financial sector and boosting the economy of the country, specifying that once the project comes to life, Peruvian people will enjoy the highest possible levels of convenience, security, and efficiency in their financial operations.

The new payment system introduced will enable real-time payments between two parties, especially individuals and companies. Indeed, it seeks to expand the use of digital payment systems as a means of reaching the financially excluded population of Peru.

Support from Central Banks

With regards to the agreement of liberalization of trade of services across borders, the Reserve Bank of India (RBI) has given endorsement to this agreement. BCRP Governor Mr. Julio Velarde highlighted the goals of this initiative: “Also, according to the BCRP, digital payment emerged to advance people’s access to financial services, sound efficiency, and new use case, apart from opening a new paradigm for further units to existing in the Peruvian territory.

International Success of UPI

This is in furtherance of NPCI’s strategy to take UPI globalization. It must be noted that the UPI system has already gone international in countries such as France, Sri Lanka, Singapore, and the latest being Mauritius. However, NPCI introduced UPI-PayNow linkage in January 2024 where remittances between India and Singapore are done directly.

It has to be pointed out that Peru being the first South American country to adopt UPI technology, signifies a great achievement. It is believed that the cooperation will create many benefits and innovations in the sphere of finances in Peru.