Peru to get UPI: First South American country to adopt UPI technology, signs agreement with NPCI

Peru to get UPI: First South American country to adopt UPI technology, signs agreement with NPCI:

NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) announced a partnership to deploy a UPI-like payments system in Peru, the payments corporation said in a press statement.

This makes Peru, the first country in South America to adopt the Unified Payment Interface (UPI) technology.

“We consider that this new infrastructure will play a fundamental role in fostering innovation and in allowing new participants to enter the Peruvian ecosystem," said Julio Velarde, Governor of the BCRP. “This will undoubtedly offer new and accessible payment services to everyone, especially the unbanked population in Peru, complementing the existing payments industry,”

Julio Velarde emphasized that the support of the Reserve Bank of India has been a cornerstone of this agreement.

“Our partnership with the BCRP aims to strengthen Peru’s financial infrastructure, to foster economic growth,” said Ritesh Shukla, CEO of NPCI International. “We will be working together to address our common objective of promoting digital payments, financial inclusion, cost optimization, and transparency in the payment landscape, with scope for further scalability and adaptability, to embrace future technological advancements and market demands."

The development follows UPI entering other markets such as France, Sri Lanka, Singapore, and Mauritius, according to a Business Standard report.

In January 2024, NPCI announced the launch of the UPI-PayNow, enabling Indians to receive remittances from Singapore. In February, it announced a partnership with e-commerce and proximity payments company Lyra to enable UPI acceptance in France, and this month, UPI services were rolled out in Sri Lanka and Mauritius, the report read.