NPCI International Payments (NIPL), the global subsidiary of the National Payments Corporation of India (NPCI), announced that it had signed an agreement with the Bank of Namibia (BoN) to assist in the development of an instant payment system akin to India's Unified Payment Interface (UPI) for Namibia.

According to a statement from NPCI, this partnership signifies a significant step towards enhancing Namibia's financial infrastructure and promoting inclusive economic development.

The partnership aims to assist Namibia in modernising its financial ecosystem by utilising technology and expertise from India's UPI. This involves enhancing accessibility, affordability, and connectivity with domestic and international payment networks, as well as promoting interoperability.

This collaboration will grant the Bank of Namibia access to top-tier technology and insights from NIPL, facilitating the development of a similar platform in Namibia to enhance the digital well-being of its citizens.

Johannes !Gawaxab, the Governor of the Bank of Namibia, stated that their objective is to enhance accessibility and affordability for underserved populations, achieve full interoperability of payment instruments by 2025, modernise the financial sector, and ensure a secure and efficient National Payment System.

"This system aims to connect individuals, businesses, and government entities across Namibia, including the payment of social grants, enabling more efficient economic interactions and supporting the growth of digital entrepreneurship," remarked the Namibia central bank governor.

Ritesh Shukla, CEO of NPCI International, expressed excitement about the partnership, stating that it will enable Namibian citizens to transact instantly using technology from India’s UPI. He highlighted that this would grant sovereignty in digital payments and improve financial access for underserved populations.

Once live, the platform will facilitate digital transactions in Namibia, driving financial inclusion and reducing cash dependency by catering to underserved populations.

As the international arm of NPCI, NIPL is devoted to the deployment of NPCI’s indigenous system outside of India. Payments through digital means in India are hitting fresh highs, as its citizens are increasingly adopting emerging modes of transacting on the internet.

UPI, India’s mobile-based fast payment system, allows customers to make instant payments round-the-clock using a Virtual Payment Address (VPA). It's immensely popular for retail digital payments in India and is rapidly gaining adoption.

The Indian government aims to extend the benefits of UPI beyond India's borders. Several countries, including Sri Lanka, Mauritius, France, UAE, and Singapore, have partnered or are intending to partner with India on emerging fintech and payment solutions.

Image source: ANI