By 
India is looking to expand its influence in Africa’s burgeoning digital payments market through its Unified Payments Interface (UPI) system. The National Payments Corporation of India (NPCI), a quasi-regulatory body under the Reserve Bank of India, developed and launched UPI in 2016. Since then, it has grown to become India’s most widely used payment solution, handling over 117 billion transactions in 2023 and operating in seven countries.
UPI is an instant payment platform that allows users to conduct interbank transactions via mobile devices. With a single mobile application, individuals can access multiple bank accounts, transfer funds, and make merchant payments, secured by two-factor authentication.
NPCI’s interest in Africa isn’t new. In June 2024, the Bank of Namibia (BoN) partnered with NPCI International Payments Limited (NIPL), NPCI’s global arm, to develop a national payment system based on UPI’s technology. This followed a similar agreement in May 2024 with Ghana, where UPI will be integrated into the Ghana Interbank Payment and Settlement Systems (GHIPSS) to enable instant, low-cost fund transfers.
India’s push into Africa aligns with the continent’s rapidly expanding digital payments market, which is projected to reach $195.50 billion in 2024. With a compound annual growth rate (CAGR) of 12.65%, the market is expected to hit $314.80 billion by 2028.
However, UPI may face stiff competition from well-established African payment platforms. M-Pesa, a dominant force in Kenya and Tanzania, offers a variety of mobile money services, including transfers, bill payments, savings, and loans. Flutterwave, which operates in over 30 African countries, facilitates cross-border transactions between Africa and the diaspora, while Nigerian fintech company Paystack recently launched its Virtual Terminal in several African countries, including Côte d’Ivoire, Ghana, Kenya, and South Africa.
As India collaborates with African nations to build a robust digital payments infrastructure, it will need to navigate the existing competitive landscape, ensuring UPI’s unique features can thrive alongside popular local platforms.
Comments