PM Modi visit: After Singapore, France likely to have UPI linkage with India for quick payments

PM Narendra Modi's visit to France is expected to be a significant milestone in the bilateral relationship between both countries. While defence cooperation between India and France will be the primary focus of the two-day visit, both countries are expected to strengthen their ties in sectors, like the digital economy, manufacturing, and clean energy.

India and France are also scheduled to discuss the possible launch of the digital payment technology Unified Payments Interface (UPI) in France, a report in Hindustan Times stated. The deal is expected to be along the lines of India-Singapore fast payment linkage.

In 2023, India’s UPI and Singapore’s PayNow signed an agreement, allowing users in either country to make cross-border transactions. Under the deal, the UPI-PayNow integration allows users of the two quick payment systems in either nation to send money across borders quickly, securely, and affordably via their respective mobile apps.

It is possible to send or receive money from India using only a UPI-id, cellphone number, or Virtual Payment Address for money held in bank accounts or e-wallets (VPA).

If the Macron government in France decides to link UPI and Lyra, then the linkage will be the first in Europe.

It is understood that if all agreements are closed in time, the linkage will be launched by PM Modi from an iconic location in Paris, the report said.

In 2022, the National Payments Corporation of India's (NPCI) international arm signed a memorandum of understanding MoU with Lyra Network of France for acceptance of UPI and Rupay in the country.

 "The whole world is watching that India is doing 5.5 billion UPI transactions in a month. This is a big achievement for India. Today's MoU with France is a big step towards the world," Union Communication minister Ashwini Vaishnaw had said after the deal was signed.

Besides, countries like UAE, Bhutan, and Nepal have already adopted India's UPI payment system so far. The NPCI international is in talks to extend the UPI services in the US, European countries, and West Asia.

According to the Reserve Bank of India’s (RBI), May 30 annual report, and UPI transaction data from the National Payments Corp. of India (NPCI), aggregate UPI transactions stood at Rs 139.2 trillion in FY23. Launched in 2016, the platform accounted for 73 per cent of all non-cash retail payments in India in the year to March.

Growing at a steady pace, UPI transactions are likely to reach 1 billion per day by 2026-27, accounting for 90 per cent of the retail digital payments in the country, said a recent PwC report.

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