Google Pay, the tech giant’s mobile payment system, is set to broaden its reach beyond India through an agreement with the National Payment Corporation of India (NPCI). The collaboration aims to extend the use of India’s United Payments Interface (UPI) for international travelers and establish similar digital payment systems in other countries.
In a joint statement, Google and NPCI announced their partnership to leverage UPI infrastructure for simplifying remittances between countries and expanding the acceptance of UPI globally. Deeksha Kaushal, Director of Partnerships for Google Pay, emphasized UPI’s impact on economies and expressed confidence in its potential to create a transformative digital infrastructure.
The initiative seeks to facilitate seamless digital payments for Indian consumers traveling abroad, eliminating the need for foreign currency, credit cards, or exchange cards. Instead, users can utilize UPI-powered apps like Google Pay for their transactions, providing merchants in other countries access to a vast consumer base.
UPI, launched in 2016, has rapidly gained traction in India, with 55% of Indians using mobile wallets for retail purchases. Moreover, UPI has become the preferred payment method for digital and in-store retail purchases, reflecting its widespread adoption and acceptance among consumers.
NPCI’s data reveals significant growth in UPI adoption, with 522 banks integrated into the system as of December 2023, up from 382 the previous year. The platform handled 12 billion transactions valued at $219 billion in the same month, indicating its robust performance and scalability.
This announcement follows NPCI’s decision to extend UPI access to non-resident Indians in countries like Singapore, the U.K., Australia, Canada, and the U.S. The move underscores India’s commitment to fostering payments interoperability across borders and promoting real-time remittances on a global scale.
As the collaboration between Google Pay and NPCI unfolds, it heralds a new era of cross-border digital payments, leveraging India’s UPI as a blueprint for global expansion.
(Source: Bloomberg | PYMNTS | TipRanks)
