Peru becomes the first country in South America to implement UPI technology, finalizes agreement with NPCI
Julio Velarde, the Governor of the Central Reserve Bank of Peru, describes this initiative as a pivotal move towards enhancing and modernizing Peru’s payment systems by broadening the reach of digital transactions.
In an unprecedented development, NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) have announced their joint effort to launch a real-time payment system in Peru, inspired by India’s Unified Payment Interface (UPI). This partnership marks Peru as the first South American nation to adopt UPI technology, showcasing India’s leading role in the digital payment landscape.
The goal of this collaboration is to enable BCRP to develop a dependable and efficient real-time payments platform within Peru. This cutting-edge system will allow for instant transactions between individuals and businesses, decreasing the country’s dependency on cash and expanding digital payment usage, especially among Peru’s significant unbanked population.
Ritesh Shukla of NPCI remarked, “Our alliance with BCRP is geared towards bolstering Peru’s financial infrastructure to drive economic growth. Together, we aim to promote digital payments, enhance financial inclusion, optimize costs, and increase transparency within the payment sector. This partnership is poised for scalability and adaptability, accommodating future technological advancements and market needs. It underscores our dedication to advancing digital public goods worldwide.”
The UPI’s collaborative and open banking model facilitates greater connectivity and interoperability with both local and global payment networks. This will stimulate innovation and resilience in Peru’s payment ecosystem, promoting financial inclusion and improving the efficiency and affordability of transactions across the country.
A New Era in FinTech Cooperation: Indian Embassy
The Indian embassy in Lima (covering Peru and Bolivia) has lauded this collaboration as a new milestone in FinTech cooperation between India and Peru.
Statements from the Central Reserve Bank of Peru Governor
Julio Velarde, Governor of the BCRP, voiced his enthusiasm about the partnership, stating, “We are thrilled by this agreement with our new strategic partner, NPCI International. This marks a crucial step in enhancing and modernizing our payment system, aiming to extend digital payment access in Peru. The Reserve Bank of India’s support has been integral to this agreement. The BCRP is committed to promoting financial inclusion, security, and efficiency, and to introducing new digital payment use cases. We believe this new infrastructure will be key in driving innovation and enabling new participants to join the Peruvian ecosystem.”
This partnership is expected to provide accessible payment services, making financial transactions easier for all Peruvians. It will boost digital payment adoption, enhance financial inclusion, and improve transaction efficiency and affordability, thereby driving economic growth and strengthening Peru’s financial infrastructure.
