Technology for MSMEs: Cross-border payments company TerraPay headquartered in the UK on Thursday announced a partnership with National Payments Corporation of India’s (NPCI) international arm NPCI International Payments Limited (NIPL) to allow merchants in India with Unified Payments Interface (UPI) ID make and accept cross-border payments. According to TerraPay, customers with active UPI IDs (350 million bank accounts) will be able to transact at QR locations enabled by TerraPay globally with the partnership.
While the collaboration will speed up the usage of UPI apps across different geographies and enhance the digital drive for cashless transactions, the disputes and grievance redressal issues will also drastically reduce since UPI payments and QR transactions are customer-initiated with a two-factor authentication which adds an element of non-repudiation, said TerraPay.
“At NIPL, we are aiming to take the solutions that NPCI has built and established in India to international markets and build a truly interoperable global payments system with other participating nations. We are actively engaging with partners across the world to build partnerships in areas of cross-border acceptance and remittances,” said Anubhav Sharma, Head International Business – Partnership, Business Development & Marketing, NIPL in a statement.
“Our partnership with NIPL is one such strong step to make cross-border payments, immediate, cost-effective, accessible for all, and settled in a secure medium thus adding value to the global payments ecosystem,” said Ritesh Pai, President-Product & Solutions, TerraPay. The company said it globally processes payouts into over 4.5 billion bank accounts and more than 1.5 billion mobile wallets.
Importantly, to boost UPI adoption across businesses, the Reserve Bank of India announced the linking of Rupay credit cards with UPI in June this year. According to RBI, the linking will enable the adoption of UPI with multiple use cases for merchants like overdraft facilities, capture and hold facility, and invoicing support, the central bank had said in its August bulletin. The linkage would give a fillip to UPI person-to-merchant (P2M) transactions which stood at Rs 769 per transaction in July 2022, the RBI had noted. Union Bank of India, Punjab National Bank and Indian Bank are the first three banks to launch Rupay credit cards on UPI, said RBI Governor Shaktikanta Das at a Global Fintech Fest event on Wednesday.
According to Statista, the P2M market in India was estimated to reach Rs 84 lakh crore by the financial year 2025 from around Rs 18 lakh crore in FY19 with Paytm, PhonePe, Google Pay, etc., among key players.