Peru has adopted India’s UPI system to boost financial inclusion.
The Central Bank of the Republic of Peru (BCRP) in an agreement with the National Payments Corporation of India (NIPL) will create a system similar to India's Unified Payments Interface (UPI). The Reserve Bank of India (RBI), which co-founded the National Payments Corporation, has partnered with BCRP in the agreement.
As India's UPI enables offline transactions, the new system will promote financial inclusion in unbanked Peru. It increases the interoperability between domestic and international payment systems.
More payment options for Peru
BCRP governor Julio Velarde said the system will play a role in “supplementing the current payment industry” by allowing new participants to enter the Peruvian ecosystem. No launch date has been announced.
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UPI users can link multiple bank accounts in the mobile app and use virtual payment addresses, phone numbers and QR codes for payments within 24 hours. According to BCPR's official statement:
“BCRP aims to promote greater accessibility, security, repeatability and efficiency as well as facilitate new use cases in digital payments.”
UPI goes around
NIPL was established in 2020. Sri Lanka, Mauritius, France, United Arab Emirates, Singapore, Bhutan and Nepal officially support the UPI system. It is working with the Bank of Namibia to develop a UPI-style payment system, according to an agreement reached in May.
Google Pay and financial institutions in the United States, Japan, China and Singapore have partnered with NIPL. Singapore was the first country where UPI was rolled out in February 2023 in partnership with PayNow.
There are at least two stable coins on the Peruvian Sol. The country is considering introducing a central bank digital currency (CBCC) from 2021. BCRP has partnered with financial authorities in China, India, Singapore and Hong Kong on CBDC development by 2021. Before India officially launched the retail CBCC pilot.
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