For the first time, cross-border UPI payments in Nepal have exceeded 100,000 person-to-merchant (P2M) transactions within 6 months of their launch. In March, NPCI Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), partnered with Nepalese payments network FonePay to enable QR-code-based P2M UPI transactions between Nepal and India. This arrangement allows Indian users in Nepal to make instant UPI payments across various stores using UPI-enabled applications.
Merchants within the FonePay network can now accept UPI payments from Indian customers. An NPCI International spokesperson noted, “Given that Indians constitute the largest number of visitors to Nepal, we expect continued growth in UPI transactions. This initiative is also expected to contribute significantly to the economic development of both countries.” NIPL has also collaborated with Nepal SBI Bank Limited (NSBL) to operationalize RuPay cards in Nepal. Additionally, travellers from Nepal can use NPCI’s UPI One World product for payments at merchant locations, including stores, travel bookings, online shopping, groceries, entertainment, hotels, restaurants, and transportation, without incurring transaction or onboarding fees. Currently, UPI is accepted in countries such as Bhutan, France, Mauritius, Singapore, Sri Lanka, and the United Arab Emirates. In June, NIPL signed an agreement with Peru’s central bank to develop a UPI-like payment system. In May, it partnered with the Bank of Namibia to create a similar instant payment system in Namibia.
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