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[[PhonePe]] made a formal request to NPCI to defer 30% market cap deadline from January 2023 to January 2026. NPCI is discussing this issue with RBI and Government. Industry stakeholders want to do away with 30% market cap proposed by NPCI, instead want organic growth based on customer demand. Implementation is another contentious issue since it results in blocking existing users from performing payment to maintain 30% market cap which is not feasible from business point of view. RBI also started looking for solutions to fix the duopoly situation created by [[Google Pay (mobile app)|Google Pay]] and PhonePe.<ref>{{Cite news |last1=Mishra |first1=Digbijay |last2=Bhalla |first2=Tarush |date=20 September 2022 |title=NPCI pings govt, industry on UPI market share cap |work=The Economic Times |url=https://economictimes.indiatimes.com/tech/technology/npci-pings-govt-industry-on-upi-market-share-cap/articleshow/94310588.cms |access-date=2022-09-20 |archive-date=20 September 2022 |archive-url=https://web.archive.org/web/20220920013706/https://economictimes.indiatimes.com/tech/technology/npci-pings-govt-industry-on-upi-market-share-cap/articleshow/94310588.cms |url-status=live }}</ref> Both the players will get two additional years till 31 December 2024 to fix their market cap.<ref>{{Cite web |last=Iyer |first=Priyanka |date=2 December 2022 |title=NPCI extends UPI market cap deadline to December 31, 2024, in a relief to PhonePe, Google Pay |url=https://www.moneycontrol.com/news/business/announcements/in-a-relief-to-phonepe-google-pay-npci-extends-upi-market-cap-deadline-to-december-2024-9641271.html |access-date=2022-12-02 |website=Moneycontrol |language=en |archive-date=2 December 2022 |archive-url=https://web.archive.org/web/20221202181531/https://www.moneycontrol.com/news/business/announcements/in-a-relief-to-phonepe-google-pay-npci-extends-upi-market-cap-deadline-to-december-2024-9641271.html |url-status=live }}</ref> | [[PhonePe]] made a formal request to NPCI to defer 30% market cap deadline from January 2023 to January 2026. NPCI is discussing this issue with RBI and Government. Industry stakeholders want to do away with 30% market cap proposed by NPCI, instead want organic growth based on customer demand. Implementation is another contentious issue since it results in blocking existing users from performing payment to maintain 30% market cap which is not feasible from business point of view. RBI also started looking for solutions to fix the duopoly situation created by [[Google Pay (mobile app)|Google Pay]] and PhonePe.<ref>{{Cite news |last1=Mishra |first1=Digbijay |last2=Bhalla |first2=Tarush |date=20 September 2022 |title=NPCI pings govt, industry on UPI market share cap |work=The Economic Times |url=https://economictimes.indiatimes.com/tech/technology/npci-pings-govt-industry-on-upi-market-share-cap/articleshow/94310588.cms |access-date=2022-09-20 |archive-date=20 September 2022 |archive-url=https://web.archive.org/web/20220920013706/https://economictimes.indiatimes.com/tech/technology/npci-pings-govt-industry-on-upi-market-share-cap/articleshow/94310588.cms |url-status=live }}</ref> Both the players will get two additional years till 31 December 2024 to fix their market cap.<ref>{{Cite web |last=Iyer |first=Priyanka |date=2 December 2022 |title=NPCI extends UPI market cap deadline to December 31, 2024, in a relief to PhonePe, Google Pay |url=https://www.moneycontrol.com/news/business/announcements/in-a-relief-to-phonepe-google-pay-npci-extends-upi-market-cap-deadline-to-december-2024-9641271.html |access-date=2022-12-02 |website=Moneycontrol |language=en |archive-date=2 December 2022 |archive-url=https://web.archive.org/web/20221202181531/https://www.moneycontrol.com/news/business/announcements/in-a-relief-to-phonepe-google-pay-npci-extends-upi-market-cap-deadline-to-december-2024-9641271.html |url-status=live }}</ref> | ||
== Internationalisation == | |||
In 2021, approximately 77.7 crore Indian consumers engaged in cross-border shopping. To facilitate payments, NPCI International Payments Limited (NIPL) signed a memorandum of understanding (MoU) with UK-based PPRO Financial on 17 November 2021 ([[Indian National Calendar|INC]]: 26 saura Kārtika 1943), aimed at expanding the acceptance of the Unified Payments Interface (UPI) in foreign markets, particularly in [[China]] and the [[United States]], which together account for half of all international transactions originating from India.<ref>{{Cite news |last=Shukla |first=Saloni |date=17 November 2021 |title=NPCI takes UPI global, ties up with leading payments provider PPRO |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/npci-takes-upi-global-ties-up-with-leading-payments-provider-ppro/articleshow/87759248.cms |url-status=live |archive-url=https://web.archive.org/web/20211119151146/https://economictimes.indiatimes.com/industry/banking/finance/banking/npci-takes-upi-global-ties-up-with-leading-payments-provider-ppro/articleshow/87759248.cms |archive-date=19 November 2021 |access-date=18 November 2021 |work=The Economic Times}}</ref> On 26 January 2022 ([[Indian National Calendar|INC]]: 06 saura Māgha 1943), UK-based fintech startup Transact365 enabled UPI for global merchants, providing a real-time currency conversion facility that allows them to conduct business in India without needing a local presence.<ref>{{Cite web |date=26 January 2022 |title=Transact365 Launches Seamless Cross Border Payments in India |url=https://financialit.net/news/payments/transact365-launches-seamless-cross-border-payments-india |url-status=live |archive-url=https://web.archive.org/web/20220202070812/https://financialit.net/news/payments/transact365-launches-seamless-cross-border-payments-india |archive-date=2 February 2022 |access-date=2 February 2022 |website=Financial IT |language=en}}</ref> According to mandates from the NPCI and the [[Reserve Bank of India]] (RBI), banks, payment service providers (PSPs), and third-party application providers (TPAPs) in India were required to enable international acceptance of UPI starting from 30 September 2022 ([[Indian National Calendar|INC]]: 08 saura Āśvina 1944).<ref>{{Cite web |last=Surabhi |date=13 April 2022 |title=NPCI to players: Ensure international acceptance of UPI by Sept 30 |url=https://www.thehindubusinessline.com/money-and-banking/npci-to-players-ensure-international-acceptance-of-upi-by-sept-30/article65317287.ece |url-status=live |archive-url=https://web.archive.org/web/20220416062041/https://www.thehindubusinessline.com/money-and-banking/npci-to-players-ensure-international-acceptance-of-upi-by-sept-30/article65317287.ece |archive-date=16 April 2022 |access-date=16 April 2022 |website=BusinessLine |language=en}}</ref> | |||
With the release of the Payments Vision 2025 document on 17 June 2022 ([[Indian National Calendar|INC]]: 27 saura Jyēṣṭha 1944), the RBI aimed to promote the internationalisation of UPI, focusing on collaboration with nations utilising the United States dollar, Pound sterling, and Euro under bilateral treaties.<ref>{{Cite news |date=19 June 2022 |title=RBI payment vision 2025 document will make India a powerhouse of payments |url=https://www.thehindu.com/business/rbis-payments-vision-2025-aims-to-establish-india-as-powerhouse-of-payments-globally-say-experts/article65542561.ece |url-status=live |archive-url=https://web.archive.org/web/20220620061803/https://www.thehindu.com/business/rbis-payments-vision-2025-aims-to-establish-india-as-powerhouse-of-payments-globally-say-experts/article65542561.ece |archive-date=20 June 2022 |access-date=20 June 2022 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref><ref>{{Cite web |date=17 June 2022 |title=Payments Vision 2025 |url=https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/PAYMENTSVISION2025844D11300C884DC4ACB8E56B7348F4D4.PDF |url-status=live |archive-url=https://web.archive.org/web/20220618154340/https://rbidocs.rbi.org.in/rdocs/PublicationReport/PDFs/PAYMENTSVISION2025844D11300C884DC4ACB8E56B7348F4D4.PDF |archive-date=18 June 2022 |access-date=20 June 2022 |website=Reserve Bank of India}}</ref> The [[Ministry of External Affairs]] (MEA) has also been actively advocating for the internationalisation of UPI due to geopolitical considerations. However, several countries, including [[Canada]], have shown reluctance to accept UPI, partly due to resistance from American firms. The MEA is exploring Central Bank to Central Bank transfers using UPI as a conduit, seeking collaborative efforts with countries that have similar systems.<ref>{{Cite news |last1=J |first1=Anand |last2=Sharma |first2=Sandhya |date=18 October 2022 |title=Geopolitics is driving UPI's bid to go global. Here are the game plan and the challenges. |url=https://economictimes.indiatimes.com/prime/fintech-and-bfsi/geopolitics-is-driving-upis-bid-to-go-global-here-are-the-game-plan-and-the-challenges-/primearticleshow/94924524.cms |url-status=live |archive-url=https://web.archive.org/web/20221018070227/https://economictimes.indiatimes.com/prime/fintech-and-bfsi/geopolitics-is-driving-upis-bid-to-go-global-here-are-the-game-plan-and-the-challenges-/primearticleshow/94924524.cms |archive-date=18 October 2022 |access-date=18 October 2022 |work=The Economic Times}}</ref> On 12 October 2022 ([[Indian National Calendar|INC]]: 20 saura Āśvina 1944), India extended an offer of UPI and related technologies to the [[Commonwealth of Nations]].<ref>{{Cite news |date=28 October 2022 |title='Potentially transformational': Commonwealth Secy Gen welcomes India's UPI sharing offer |url=https://economictimes.indiatimes.com/industry/banking/finance/potentially-transformational-commonwealth-secy-gen-welcomes-indias-upi-sharing-offer/articleshow/95133043.cms |url-status=live |archive-url=https://web.archive.org/web/20221028074346/https://economictimes.indiatimes.com/industry/banking/finance/potentially-transformational-commonwealth-secy-gen-welcomes-indias-upi-sharing-offer/articleshow/95133043.cms |archive-date=28 October 2022 |access-date=28 October 2022 |work=The Economic Times}}</ref> | |||
=== Remittance === | |||
In response to the increasing remittances to India, NPCI International Payments Limited (NIPL) is set to integrate UPI with [[Western Union]], facilitating the [[Indian diaspora]] in sending and receiving money internationally with ease. This service is expected to become operational in the second quarter of 2022. [[IndusInd Bank]], in collaboration with Thailand-based financial service provider DeeMoney, will utilise UPI IDs to verify customers in India for cross-border transactions. This initiative is part of the Money Transfer Operator (MTO) partners program established by NPCI. | |||
IndusInd Bank aims to partner with additional foreign entities to enhance the acceptance of UPI in international markets. Furthermore, on 27 January 2022 ([[Indian National Calendar|INC]]: 07 saura Māgha 1943), NIPL signed a memorandum of understanding (MoU) with Netherlands-based Terra Payment Services, which will enable UPI users to receive international payments from around the globe in real time. | |||
To alleviate the costs incurred by Indians living abroad when sending money back home, the National Payments Corporation of India (NPCI) is working towards transitioning 3.2 crore expatriates from the [[SWIFT]] system to UPI. The significance of developing an alternative payment system has become increasingly apparent following the 2022 Russian attack on Ukraine and the subsequent removal of Russian banks from SWIFT, which highlighted vulnerabilities in the existing framework for international transactions. | |||
Starting from 30 April 2023 ([[Indian National Calendar|INC]]: 10 saura Baiśākha 1945), individuals with international mobile numbers from [[Malaysia]], [[Singapore]], [[Australia]], [[Canada]], [[Hong Kong]], [[Oman]], [[Qatar]], the [[USA]], [[Saudi Arabia]], the [[UAE]], and the [[UK]] will be able to access UPI transaction facilities. This service will be available through non-resident external (NRE) and non-resident ordinary (NRO) accounts. As of 11 January 2024 ([[Indian National Calendar|INC]]: 21 saura Pauṣa 1945), customers of [[Axis Bank]], [[DBS Bank]], ICICI Bank, [[Indian Bank]], [[Indian Overseas Bank]], and [[State Bank of India]] are now able to utilise the remittance facility between [[Singapore]] and [[India]] through applications such as [[BHIM]], [[Paytm]], and [[PhonePe]]. Additional banks are expected to join the network soon, including [[HDFC Bank]], [[Bank of Baroda]], [[Bank of India]], [[Canara Bank]], [[Central Bank of India]], [[Federal Bank]], [[IDFC First Bank]], [[IndusInd Bank]], [[Karur Vysya Bank]], [[Kotak Mahindra Bank]], [[Punjab National Bank]], [[South Indian Bank]], and [[UCO Bank]]. | |||
== Acceptance == | == Acceptance == | ||
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==== Nepal ==== | ==== Nepal ==== | ||
On 17 February 2022, NIPL announced | On 17 February 2022 ([[Indian National Calendar|INC]]: 28 saura Māgha 1943), NPCI International Payments Limited (NIPL) announced plans to deploy UPI in Nepal to facilitate person-to-person (P2P) and person-to-merchant (P2M) transactions, as well as to enable cross-border remittances with India. This initiative is being undertaken in collaboration with Nepal's Manam Infotech and Gateway Payments Service.<ref>{{Cite web|date=17 February 2022|title=NPCI to deploy UPI in Nepal, first country outside India|url=https://www.businessinsider.in/business/news/npci-to-deploy-upi-in-nepal-first-country-outside-india/articleshow/89641194.cms|access-date=17 February 2022|website=Business Insider|archive-date=17 February 2022|archive-url=https://web.archive.org/web/20220217124728/https://www.businessinsider.in/business/news/npci-to-deploy-upi-in-nepal-first-country-outside-india/articleshow/89641194.cms|url-status=live}}</ref> However, the implementation of the digital payment system has faced delays due to Indian banks not updating their mobile applications to incorporate Nepal's payment features, pushing the anticipated launch to December 2023.<ref>{{Cite web |last=Prasain |first=Krishana |date=5 December 2023 |title=Nepal-India digital payment system launch delayed |url=http://kathmandupost.com/money/2023/12/05/nepal-india-digital-payment-system-launch-delayed |access-date=23 December 2023 |website=kathmandupost.com |language=English}}</ref> As of that time, banks in Nepal had completed their preparations for the integration. On 22 December 2023 ([[Indian National Calendar|INC]]: 01 saura Pauṣa 1945), Indian Ambassador to Nepal, Naveen Srivastava, announced that the first phase of digital payments between India and Nepal is scheduled to commence in February 2024.<ref>{{Cite news |date=22 December 2023 |title=India-Nepal digital payment gateway likely to start from Feb: Indian Envoy |work=Business Standard |url=https://www.business-standard.com/india-news/india-nepal-digital-payment-gateway-likely-to-start-from-feb-indian-envoy-123122201170_1.html |access-date=23 December 2023}}</ref> | ||
To facilitate cross-border remittances, the [[Reserve Bank of India]] (RBI) and [[Nepal Rastra Bank]] (NRB) have signed the Terms of Reference for integrating India's Unified Payments Interface (UPI) with Nepal's National Payments Interface (NPI).<ref>{{Cite web |last=Tyagi |first=Akshit |date=16 February 2024 |title=India signs agreement with Nepal for UPI integration: List of countries accepting UPI payments |url=https://www.indiatvnews.com/business/news/india-signs-agreement-with-nepal-for-upi-integration-list-of-countries-accepting-upi-payments-2024-02-16-917130 |access-date=16 February 2024 |website=India TV |language=en}}</ref> On 9 March 2024 ([[Indian National Calendar|INC]]: 19 saura Phālguna 1945), NPCI and Fonepay Payment Service announced the launch of UPI for cross-border transactions.<ref>{{Cite news |date=9 March 2024 |title=Now scan & pay with UPI in Nepal |url=https://timesofindia.indiatimes.com/business/india-business/now-scan-pay-with-upi-in-nepal/articleshow/108339712.cms |access-date=10 March 2024 |work=The Times of India |issn=0971-8257}}</ref> | |||
Starting from 27 June 2024 ([[Indian National Calendar|INC]]: 06 saura Āṣāṛha 1946), Nepal Rastra Bank began allowing Nepali citizens to make payments to merchants in India by scanning UPI QR codes. For commercial payments, a daily limit of {{INR|15,000}} and a monthly limit of {{INR|1}} lakh has been established.<ref>{{Cite web |last=Prasain |first=Krishana |date=28 June 2024 |title=Nepal permits QR code payment in India and Bhutan |url=https://kathmandupost.com/money/2024/06/28/nepal-permits-qr-code-payment-in-india-and-bhutan |access-date=2024-07-02 |website=The Kathmandu Post |language=English}}</ref> Since February 2024, Fonepay has processed over 1 lakh UPI transactions in Nepal, accumulating a transaction volume exceeding {{INR|25}} lakh.<ref>{{Cite web |date=25 June 2024 |title=Fonepay processes over 100,000 UPI transactions in Nepal |url=https://kathmandupost.com/money/2024/06/25/fonepay-processes-over-100-000-upi-transactions-in-nepal |access-date=2024-07-02 |website=The Kathmandu Post |language=English}}</ref> | |||
==== France ==== | ==== France ==== | ||