In a groundbreaking move, NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) announced on Wednesday their collaboration to introduce a real-time payments system in Peru, modeled after India's Unified Payment Interface (UPI). This partnership makes Peru the first country in South America to adopt UPI technology, symbolising India's pioneering role in digital payments.
The collaboration aims to empower the BCRP to establish a reliable and efficient real-time payments platform within Peru. This innovative system will facilitate instant payments between individuals and businesses, significantly reducing the country's reliance on cash-based transactions and expanding the use of digital payments, particularly among 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 of NPCI.
UPI's collaborative and open banking ethos enables greater connectivity and interoperability with both domestic and international payment networks. This will foster innovation and resilience in the Peruvian payment ecosystem, promoting financial inclusivity and enhancing transaction efficiency and affordability across the country.
New chapter in FinTech cooperation: Indian embassy
The Indian embassy of Lima (Peru and Bolivia) called the collaboration as new chapter in FinTech cooperation between India and Peru.
What Governor of Central Reserve Bank of Peru said?
Julio Velarde, Governor of the BCRP, expressed optimism about the partnership. He said, "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."
The partnership is expected to introduce accessible payment services, simplifying financial transactions for all Peru residents. This development will promote digital payments, foster financial inclusivity, and enhance the overall efficiency and affordability of transactions in the country, thereby spurring economic growth and fortifying Peru's financial infrastructure.
(With ANI Inputs)
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