In order to create a real-time payments platform similar to the Unified Payments Interface (UPI), the Namibian central bank and the National Payments Corporation of India (NPCI) have inked a licensing deal.
According to Dammu Ravi, secretary in the external affairs ministry, during a press briefing on the outcomes of Prime Minister Narendra Modi's visit to the African nation, NPCI and the Namibian central bank have signed a licensing agreement to implement UPI in Namibia for real-time payments, making it the first country of its kind in the world.
Namibia would be able to create a real-time payment system thanks to the agreement. Notably, more than a year ago, the Bank of Namibia and NPCI International Payments Limited (NIPL), the organisation's international arm, originally inked a deal to create a digital payments system.
India Agrees for Transfer-of-Technology
As part of the collaboration, the NPCI committed to providing the Bank of Namibia with technology and other knowledge to aid in the creation of a digital payments system. In an effort to boost UPI use globally, the NPCI has inked agreements with a number of nations.
The NIPL and Trinidad and Tobago's ministry of digital transformation collaborated on the same project in September of last year. Before that, it was negotiating with South American and African nations to assist them in developing digital payment systems such as the UPI.
The UAE's Network International and the NPCI joined in July 2024 to enable Indian tourists to use UPI at a number of locations throughout the Gulf country. As a result, a number of nations, including France, the United Arab Emirates, Bhutan, Nepal, and Singapore, now accept UPI payments.
UPI Expanding its Nexus
The NPCI is still working to expand UPI in order to reach its daily goal of one billion transactions.
In order to facilitate UPI payments through smart devices such as wearables, connected cars, and smart applications, the payments body is developing an Internet of Things version of the real-time payment system.
Last month, there were 18.40 billion UPI transactions, totalling INR 24.04 lakh crore. For India's fintech infrastructure, the recent collaboration with Namibia is undoubtedly a significant victory.
The UPI system, which has been praised for being accessible to all societal levels in India, is now beginning its global expansion and creating opportunities for other countries to follow.
Johannes Gawaxab, the governor of Namibia's central bank, had earlier underlined that the goal of implementing UPI is to guarantee the deployment of a safe and effective national payment system in Namibia in addition to promoting financial inclusion and reducing reliance on cash.
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