The National Payments Corporation of India (NPCI) has been a game-changer in transforming digital payments in India. With successful home grown platforms like Unified Payments Interface (UPI) and RuPay cards, NPCI aims to take the next big leap - expanding its services globally.

The Vision for International Expansion

NPCI envisions taking platforms like UPI and RuPay beyond the borders of India. The goal is to build a 'digital payments highway' connecting India and other countries. Here's what the international expansion plans to achieve:

• Take UPI and RuPay to global markets.
• Enable cross-border mobile payments.
• Make payments faster, easier and more accessible globally.
• Promote Indian payment innovations worldwide.

This global foray will first focus on nearby regions like South Asia, Middle East, and Southeast Asia. The long-term vision is to create a worldwide acceptance network for NPCI's payment systems.

Potential Markets for International Growth

NPCI has forged partnerships with overseas stakeholders spanning banks, payment networks and monetary authorities. Here are some key target markets for RuPay and UPI's international launch:

• Bhutan: NPCI entered into an agreement with Royal Monetary Authority of Bhutan in 2021 to introduce UPI-based mobile payments. Bhutan was the first country to adopt UPI.
• Singapore: UPI went live in Singapore in February 2022 through collaboration between NPCI and Singapore's payment network NETS. This enables Indians travelling to Singapore to use UPI for payments.
• United Arab Emirates: In August 2021, NPCI partnered with Mashreq Bank to begin acceptance of RuPay cards across the UAE, opening up prospects in the wider Middle East.
• Nepal: SBI Bank tied up with Payment Nepal for acceptance of UPI payments across the country. This facilitates convenient cross-border P2P funds transfer.

NPCI also partnered up with Liquid Group to enable UPI QR code payments in 10 countries across North and Southeast Asia including Malaysia, Thailand, Philippines, Vietnam, Cambodia, Hong Kong, Taiwan, South Korea, and Japan. Malaysia's leading fintech company Merchantrade Asia has joined hands with NPCI International to allow real-time money transfers to India via UPI.

NPCI International Payments Ltd (NIPL) has partnered with UK's payment solutions pioneer PayXpert to make NPCI's Indian payment systems available across Britain. This collaboration will start by enabling UPI QR code payments on PayXpert's android POS machines for in-store shopping. Later on, they also plan to integrate RuPay card payments into these POS machines. So both UPI and RuPay, NPCI's flagship payment innovations, will be landing in the UK for the first time.

NPCI has also signed up with Worldline, to facilitate its reach across Europe. Through this new partnership which was etched in October 2022, Worldline will let European merchants accept UPI and RuPay payments from Indian customers by enabling POS systems across stores to scan UPI QR codes and process RuPay cards. Worldline will facilitate this via its universal QR payment product available across merchants in Europe. The first target markets are Benelux countries and Switzerland. More countries will be added as Worldline QR rolls out wider in Europe.

Strategies for Global Growth

As it goes international, NPCI is following well-planned strategies to build worldwide presence:

• Tie-ups with overseas financial institutions: NPCI is collaborating with banks and payment networks globally to establish acceptance of RuPay and UPI.
• Focus on regions with high Indian diaspora: Initial focus is on regions like Southeast Asia and Middle East which have sizable Indian migrant population. This allows serving the cross-border payment needs of NRIs.
• Gradual expansion plan: NPCI is taking measured steps by starting with small-scale pilots in overseas markets. Post testing, services will be expanded in phases.
• Building ecosystem partnerships: NPCI is working closely with domestic and international ecosystem players like Visa, Mastercard, mobile wallet companies, etc. to co-create solutions.
• Conformance to local regulations: NPCI will ensure complete compliance with local laws, tax regimes and data privacy standards in foreign countries.

The Road Ahead

Going international is a major milestone for NPCI after years of powering digital payments within India. With RuPay cards and UPI, it aims to replicate the domestic success story globally. NPCI is quickly ramping up UPI's presence far beyond India's borders. With more global partnerships in the pipeline, it aims to take the flagship payments platform places.