Cross-border UPI payments launched in Cambodia

Why in News?

NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India, has partnered with ACLEDA Bank Plc. to launch Unified Payments Interface (UPI) acceptance in Cambodia, expanding India’s digital payment footprint globally.

About the Initiative

• Under the first phase, Indian travellers visiting Cambodia can make seamless QR-code-based payments at more than 4.5 million Cambodian merchants using UPI-enabled applications.
• The initiative is aimed at facilitating convenient, secure and real-time cross-border digital payments.
• It marks another milestone in India’s efforts to internationalize its digital public infrastructure.

Two-Way Payment Corridor

• Initially, the facility will serve Indian travellers in Cambodia.
• In the second phase, the arrangement will become fully bi-directional.
• Cambodian citizens visiting India will be able to use their domestic banking and digital payment applications to scan UPI QR codes across India.
• The interoperability will be enabled through Cambodia’s Bakong KHQR payment ecosystem.

Benefits

For Indian Travellers

• Seamless payments abroad using familiar UPI applications.
• Reduced dependence on cash exchange and international cards.
• Faster and more secure transactions.

For Cambodian Businesses

• Access to a large and growing Indian tourist market.
• Higher transaction volumes and improved payment efficiency.
• Greater integration with international digital payment networks.

About UPI

• Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India.
• It enables instant fund transfers between bank accounts through mobile applications.
• UPI is one of the world’s largest digital payment platforms and a key component of India’s Digital Public Infrastructure (DPI).

About NIPL

• NPCI International Payments Limited (NIPL) is the international subsidiary of NPCI.
• It is responsible for expanding UPI and other Indian payment systems across global markets.
• NIPL works with foreign banks, payment networks and governments to establish cross-border payment linkages.

Countries Accepting UPI

With Cambodia joining the network, UPI is now accepted in nine countries: Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka and Cambodia.

Source: AIR