NPCI signs UPI tech contract with Bank of Namibia

May 3, 2024

On May 3, 2024, NPCI International Payments Limited (NIPL), the global arm of the National Payments Corporation of India (NPCI), entered into its first international agreement with the Bank of Namibia.

This collaboration is aimed at developing a real-time payment system in Namibia akin to India’s Unified Payment Interface (UPI). The initiative is designed to facilitate instant Person-to-Person transactions and merchant payments, thereby promoting digital financial inclusion within the country. As outlined by the governor of the Bank of Namibia, Johannes Gawaxab, the project’s ambitions extend beyond simplifying transactions. Namibia is looking to achieve full interoperability among different payment instruments by 2025.

This undertaking is part of a broader strategy to modernize Namibia’s financial landscape and ensure a secure and efficient National Payment System. The proposed payment system is expected to significantly impact various sectors across Namibia by enabling a seamless connection between individuals, businesses, and government entities.

Among other benefits, it will be instrumental in distributing social grants and fostering growth in digital entrepreneurship, thus supporting economic development and financial accessibility across the nation.

About Unified Payment Interface (UPI)

UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that facilitates instant inter-bank transactions. It operates 24/7 and allows users to send or receive money through a mobile app using a Virtual Payment Address (VPA), eliminating the need to share bank details. UPI supports multiple bank accounts in a single app, making transactions like utility payments, shopping, or peer-to-peer transfers efficient and secure, significantly contributing to the digitalization of the Indian financial ecosystem.

About NPCI International Payments Limited (NIPL)

Launched by NPCI, NIPL is a subsidiary focused on promoting NPCI’s indigenous, scalable payment solutions like UPI and RuPay globally. It aims to enable a seamless payment infrastructure beyond India and foster the acceptance of Indian payment solutions in international markets.

NIPL also collaborates with foreign banks, governments, and financial institutions to facilitate technology sharing and integration, thereby extending the reach of Indian digital payment systems and contributing to the evolution of global digital finance.

About Digital Financial Inclusion

Digital financial inclusion involves extending access to financial services to underserved sectors of the society through digital means, including mobile banking, digital wallets, and online transactions. Aiming to bridge the gap between the financially excluded populations and mainstream banking services, it enhances the accessibility, convenience, and affordability of financial services. Tools like smartphones and the internet are harnessed to empower people with better financial literacy, planning, and independence, thereby contributing to the broader economic development and reduction of poverty.

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