This integration is part of India's broader strategy to extend the reach of its instant payment system on a global scale. UPI, which is a widely adopted payment system in India, has already been linked with payment systems in several countries, including Bhutan, Singapore, the UAE, France, Mauritius, Sri Lanka, and Nepal.
The Indian government, along with the Reserve Bank of India, is focused on expanding UPI's international footprint. PayNet has also expressed its commitment to advancing Malaysia's financial infrastructure through innovation and strategic collaborations.
The announcement was made during discussions between the two country leaders in New Delhi, which also covered various areas of potential bilateral cooperation. PayNet highlighted the importance of enhancing cross-border digital payment systems to facilitate smoother transactions for travelers between Malaysia and other countries, including India. However, details on specific initiatives related to this partnership were not disclosed.
In a recent interview with Ritesh Shukla, CEO of NPCI International Payments Limited (NIPL), we found that NPCI’s international division, NPCI International Payments (NIPL), is working to extend UPI’s global reach.
NIPL seeks to establish interoperability for UPI to support peer-to-peer (P2P) and peer-to-merchant (P2M) cross-border payments. It also partners with foreign central banks and governments to assist in developing robust, interoperable payment systems similar to UPI.
UPI supports multiple use cases such as P2P, P2M, Request-to-Pay, UPI on Delivery, Standing Instructions, IPO investments, etc. To elaborate on a few, Request-to-Pay enables individuals or merchants to request money from the payer via UPI, simplifying transactions. With recurring payments, UPI supports auto-debit functionality for utilities, entertainment subscriptions, and other services.
Users can also link their RuPay credit card to UPI apps for secure transactions without needing the physical card. Additionally, with UPI for International Payments, Indians can currently pay select merchants in Bhutan, France (ecommerce), Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.
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