India to Support African Nations in Developing Digital Payment Systems, Inspired by UPI Success

India’s digital payments landscape has seen remarkable growth, largely driven by the success of its Unified Payments Interface (UPI) system. Now, India is extending its expertise, with plans to help several African nations build their own digital payment systems modeled after UPI. The National Payments Corporation of India (NPCI) has initiated discussions with at least 20 countries across Africa and South America, aiming to enhance financial inclusion through digital payments.

Launched in 2016, UPI enables real-time payments, allowing seamless fund transfers between bank accounts for both peer-to-peer transactions and business payments. The system has already been adopted in countries such as Sri Lanka, the United Arab Emirates, and most recently, Namibia. In early 2023, Mauritius also integrated UPI into its financial infrastructure alongside RuPay cards, further validating the system’s versatility and global appeal.

India’s initiative to promote UPI in Africa is driven by its transformative impact on financial inclusion at home. By December 2023, UPI had processed 12 billion transactions in that month alone, contributing to over 100 billion transactions for the year and surpassing $2 trillion in transaction value.

In Africa, where a significant portion of the population remains unbanked, the introduction of UPI-like systems presents an opportunity to drive both digital and economic inclusion. A 2023 report by AfricaNenda revealed that 27 African countries still lack instant payment systems. Meanwhile, McKinsey forecasts that electronic payment revenues in Africa could reach $40 billion by 2025, highlighting the continent’s growing appetite for investment in digital payment infrastructure.

India’s collaboration with African nations marks a significant step towards fostering financial inclusion and innovation through proven digital solutions.

Credit: Samira Njoya