Namibia to Become First African Country to Roll Out Digital Payments System Based on UPI

During the visit of the Prime Minister of India to Namibia, the two countries entered an agreement that involved a license to adopt the UPI system of making real-time digital payments. This transforms Namibia to become the first African leading nation to use Unified Payments Interface (UPI) as an indication of promoting India Digital payment ecosystem internationally.

Key Details:

What is UPI (Unified Payments Interface)?

• UPI was introduced in 2016 by NPCI, which enables having access to multiple accounts in one bank using only a single application, routing funds and making payments to merchants extremely convenient.

International proliferation of UPI:

• The globalization of UPI would be in tandem with the plan of RBI to make UPI operational in 20 nations by 2028-29.

• Other states that have UPI in operation are Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka and UAE.

Internationalization of UPI significance:

• International market growth: Enables international payments, a factor that will enhance the flow of goods between India and the rest of the world.

• Interoperability & Standardization: Facilitates cooperation between payment systems in different parts of the world and establishes more harmonious relations in the field of financial technologies.

• Digital Diplomacy: Amplifies India image, goodwill and international presence due to collaborations with technology.

Internationalization of UPI activities:

• In 2020 NIPL (NPCI International Payments Ltd.) was established in order to market RuPay to international customers and UPI.

• UPI One World: A prepaid payment tool which is pegged to UPI, issued to foreign nationals and NRIs using G20 countries.

The G20 initiatives of India:

• Creating a Global Digital Public Infrastructure (DPI) Repository.

• Establishing a Gracious Social Impact Fund to promote Digital Public Infrastructure (DPI), especially in the Global South.

Conclusion:

The use of UPI in Namibia is a milestone in relations between India and that country in its mission to digitalize payments. It is an initiative that will not only strengthen trade across borders but it will also promote India in matters of diplomacy and technology. India will continue its lead in the field of global financial technology with UPI in the center of the Global Digital Public Infrastructure.