NIPL ties up with Central Bank of Peru for UPI-like payment system in Peru

NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) have announced a partnership on Wednesday to enable the deployment of a UPI-like real-time payments system in Peru.

This collaboration makes Peru the first country in South America to adopt Unified Payment Interface (UPI) technology, a symbol of India's pioneering excellence in digital payments.

The partnership will empower Central Reserve Bank of Peru to establish a reliable and efficient real-time payments platform within the country. 

This innovative system facilitates instant payments between individuals and businesses, thereby reducing reliance on cash-based transactions and expanding the use of digital payments to Peru's large unbanked population.

"Our partnership with the BCRP aims to strengthen Peru's financial infrastructure, to foster economic growth. We will be working together to address our common objective of promoting digital payments, financial inclusion, cost optimization, and transparency in the payment landscape, with scope for further scalability and adaptability, to embrace future technological advancements and market demands. It also reflects on our commitment towards advancing digital public goods across the globe" said Ritesh Shukla, CEO of NPCI International.

UPI's collaborative and open banking ethos enables greater connectivity and interoperability with both domestic and international payment networks and will foster innovation and resilience in the Peruvian payment ecosystem.

The partnership between India and Peru aims to fortify Peru's financial infrastructure and spur its economic growth.

The new infrastructure by the partnership will introduce accessible payment services, simplifying financial transactions for all residents of Peru. 

It will help in promoting digital payments, fostering financial inclusivity, and enhancing the efficiency and affordability of transactions in the country.

"We are delighted by this agreement with our new strategic partner, NPCI International. We believe this marks a significant step in strengthening and modernizing our payments system, aiming to expand access to digital payments in Peru. The support of the Reserve Bank of India has been a cornerstone of this agreement. The BCRP aims to promote financial inclusion, security, and efficiency, and to introduce new use cases in digital payments. Additionally, we consider that this new infrastructure will play a fundamental role in fostering innovation and in allowing new participants to enter the Peruvian ecosystem" said Julio Velarde, Governor of the BCRP.