A report by FXC Intelligence has highlighted the significant impact of India’s Unified Payments Interface (UPI) on cross-border payments, signaling the country’s emergence as a global economic leader and a frontrunner in digital payments innovation.
UPI grew by 900 per cent in 2017 compared to the previous year and has since been rapidly adopted across India, with 117.6 billion transactions worth INR182trillion in 2023 alone.
The UPI platform, operated by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), facilitates instant and seamless account-to-account transfers through various fintech applications.
Originally conceived to combat cash-based corruption and promote financial inclusion, UPI has evolved into a cornerstone of India’s vision for a digital economy.
FXC’s report, The Impact of India’s UPI on Cross-Border Payments, evaluates the ramifications of UPI’s recent expansion into France, Sri Lanka, and Mauritius. This expansion follows earlier adoption by merchants in countries such as Bhutan, the UAE, Malaysia, and Singapore, among others.
Additionally, discussions between India and the US are underway to establish a real-time payments link, underscoring UPI’s growing global influence.
Daniel Webber, CEO and founder of FXC Intelligence, said:“UPI underpins India’s dedication to its ongoing domestic digital transformation and its ambition to bridge gaps in financial access and boost participation in the domestic economy.”
“However, its impact extends far beyond India’s borders and is helping to position the country as a world economic leader and a pioneer in the digital payments space. The growing significance of UPI in cross-border transactions is not just a domestic technological success, but a strategic play to help cement India’s position as an innovative leader on the world economic stage.”
The Fintech TimesThe Fintech Times
