Peru Partners with India to Launch Instant Payments System

Peru is set to revolutionise its financial landscape by introducing a UPI-like instant payments system, following a landmark agreement between NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP). This collaboration marks NIPL’s second major partnership with a central bank for the deployment of the Unified Payments Interface (UPI) technology on an international scale. Earlier, in May, NIPL had entered into a similar agreement with the Bank of Namibia to develop an instant payment system in the African nation.

Ritesh Shukla, CEO of NIPL, highlighted the significance of this partnership, stating that it aims to enhance Peru’s financial infrastructure and stimulate economic growth. He noted that once the system is operational, Peruvian citizens would experience unprecedented levels of convenience, security, and efficiency in their financial transactions. This initiative is expected to facilitate instant payments for both individuals and businesses, while also extending the benefits of digital payments to Peru’s unbanked population.

Boosting Financial Inclusion and Innovation

Julio Velarde, Governor of BCRP, emphasised that the support from the Reserve Bank of India (RBI) has been crucial in forming this agreement. He pointed out that BCRP’s goals include promoting financial inclusion, enhancing security and efficiency in financial transactions, and introducing new use cases for digital payments. Velarde also mentioned that this new infrastructure is anticipated to play a fundamental role in fostering innovation and allowing new participants to enter the Peruvian financial ecosystem.

This development aligns with NPCI’s broader strategy to extend UPI technology globally, following successful initiatives in countries such as France, Sri Lanka, Singapore, and Mauritius. In January 2024, NPCI announced the UPI-PayNow linkage, which enables direct remittances between India and Singapore. Furthermore, in February, NPCI partnered with Lyra, an e-commerce and proximity payments company, to facilitate UPI acceptance in France. The same month, UPI services were launched in Sri Lanka and Mauritius, showcasing the global appeal and adaptability of UPI technology.

This collaboration between NIPL and BCRP is poised to significantly transform Peru’s digital payment landscape. By integrating advanced financial technology, Peru aims to bring enhanced financial services to its citizens, support economic growth, and ensure broader financial inclusion. The implementation of this system is expected to not only improve transactional efficiency but also drive technological innovation within the country’s financial sector, positioning Peru as a forward-thinking leader in digital payments.