PayNow-UPI Linkage Facilitates International Payments
The tie-up between Singapore’s PayNow and India’s Unified Payments Interface (UPI) has created a cross-border payment system that is now processing nearly 3,000 transactions per month. This partnership has significantly reduced remittance costs for the Indian diaspora. The PayNow-UPI linkage enables instant and cost-effective fund transfers between the two countries using mobile numbers and virtual payment addresses.
The National Payments Corporation of India (NPCI) oversees products such as UPI, Immediate Payment Service (IMPS), National Financial Switch, and BHIM Aadhaar Pay. However, official data on the PayNow-UPI linkage has not been published by NPCI.
The collaboration between RBI, the Monetary Authority of Singapore, NPCI, and the Singapore-based Banking Computer Services has established scalable cloud infrastructure to accommodate future increases in remittance traffic through the PayNow-UPI linkage.
Revamping Cross-Border Flows
Indian authorities have been actively pursuing cheaper ways to facilitate cross-border remittances. The RBI signed a memorandum of understanding with the central bank of the UAE regarding mutual payments and messaging. Additionally, NPCI has formed partnerships with several countries including Malaysia, UAE, Oman, Nepal, Bhutan, France, Thailand, Hong Kong, and Japan to enable real-time remittances to India.
Last year saw a record $100 billion worth of remittances to India, marking a 12% increase from the previous year.
Hot Take: Expanding Opportunities for Cross-Border Transactions
The partnership between Singapore’s PayNow and India’s UPI has revolutionized international payments by offering a more affordable and efficient solution for cross-border transactions. With close to 3,000 transactions processed monthly and growing acceptance among users, this innovative linkage is set to benefit both the Indian diaspora and workers staying in Singapore. The scalable cloud-based infrastructure ensures that future increases in remittance traffic can be accommodated seamlessly.
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