NPCI International Payments (NIPL), the global subsidiary of the National Payments Corporation of India (NPCI), has inked a deal with the Bank of Namibia (BoN) to aid in establishing an instant payment system akin to India’s Unified Payment Interface (UPI) for the Southwest African nation.
In a statement released by NPCI on Thursday, this collaboration signifies a strategic advancement towards fortifying Namibia’s financial infrastructure and promoting inclusive economic development. Through the utilization of technology and insights derived from India’s UPI, the partnership endeavors to assist Namibia in modernizing its financial landscape. This encompasses enhancing accessibility, affordability, connectivity with both domestic and international payment networks, and interoperability.
Under this alliance, the Bank of Namibia will access cutting-edge technology and expertise from NIPL to facilitate the establishment of a comparable platform in Namibia for the digital well-being of its populace. Johannes !Gawaxab, Governor of the Bank of Namibia, articulated their aim to bolster accessibility and affordability for underserved segments, achieve full interoperability of payment instruments by 2025, modernize the financial sector, and ensure a secure and efficient National Payment System. He elaborated that this system aims to interconnect individuals, businesses, and government entities across Namibia, encompassing the disbursement of social grants, thereby streamlining economic interactions and fostering digital entrepreneurship.
Commenting on the partnership, Ritesh Shukla, CEO of NPCI International, expressed enthusiasm, stating, “We are thrilled about this collaboration, which will empower Namibian citizens to engage in instant transactions leveraging technology and insights from India’s UPI. By facilitating this technology, the country will attain sovereignty in the digital payments landscape and reap the benefits of enhanced payment interoperability and improved financial access for underserved populations.”
Once operational, the platform will facilitate digital transactions in Namibia, driving financial inclusion and diminishing reliance on cash among underserved communities.
As NPCI’s international arm, NIPL is dedicated to deploying NPCI’s indigenous system outside of India.
Digital payments in India are witnessing a surge, with citizens increasingly embracing emerging modes of online transactions. UPI, India’s mobile-based rapid payment system, enables customers to make instantaneous payments round the clock using a Virtual Payment Address (VPA) generated by the customer. UPI has gained immense popularity for retail digital payments in India, with its adoption growing rapidly.
A focal point of the Indian government has been to ensure that the benefits of UPI extend beyond India; other nations also stand to benefit from it. Thus far, Sri Lanka, Mauritius, France, UAE, Singapore, and others have partnered with India or expressed intentions to collaborate on emerging fintech and payment solutions.