Global: India to Assist African Nations in Developing Digital Payment Systems Based on UPI Model

India’s rapid growth in digital payments, propelled by the success of its Unified Payments Interface (UPI), is now serving as a model for several African nations. India plans to share its expertise by helping these countries develop their own digital payment systems inspired by UPI, with the goal of enhancing financial inclusion across the continent. The National Payments Corporation of India (NPCI) is leading discussions with more than 20 countries in Africa and South America to establish systems that could replicate UPI’s success.

Launched in 2016, UPI facilitates real-time payments, enabling seamless transfers between bank accounts for both peer-to-peer and business transactions. It has already gained international recognition, with countries such as Sri Lanka, the United Arab Emirates, and Namibia adopting the system. In 2023, Mauritius also integrated UPI and RuPay cards into its financial ecosystem, highlighting the versatility and global scalability of the platform.

India’s push to extend UPI to Africa is driven by its transformative impact on financial inclusion at home. By the end of 2023, UPI had processed over 12 billion transactions in a single month, contributing to more than 100 billion transactions for the year and exceeding $2 trillion in transaction value.

Africa presents significant potential for digital payment growth, as a large portion of the population remains unbanked. A 2023 report by AfricaNenda indicated that 27 African nations still lack instant payment systems. Additionally, McKinsey forecasts that electronic payment revenues in Africa could reach $40 billion by 2025, emphasizing the continent’s rising demand for digital payment infrastructure.

India’s collaboration with African nations to implement UPI-like systems marks an important step in fostering financial inclusion and economic development through innovative, proven digital solutions. This initiative holds promise for expanding access to banking services and unlocking new economic opportunities for millions across Africa.