UPI Powers Malaysian Payments: India-Malaysia Cross-Border Deal Struck

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AuthorSatyam Jha|Published at:
UPI Powers Malaysian Payments: India-Malaysia Cross-Border Deal Struck
Overview

NPCI International Payments Limited (NIPL) has partnered with Payments Network Malaysia Sdn Bhd (PayNet) to integrate India's UPI payment system with Malaysia's DuitNow QR. This phased rollout will allow Indian travelers to use UPI apps for payments in Malaysia and later enable Malaysian travelers to use DuitNow apps in India, enhancing cross-border transactions.

Cross-Border Payment Integration Unveiled

NPCI International Payments Limited (NIPL), the global arm of India's National Payments Corporation of India, has inked a significant agreement with Payments Network Malaysia Sdn Bhd (PayNet). This collaboration is set to bring India's ubiquitous Unified Payments Interface (UPI) to Malaysian merchant terminals, marking a crucial step in expanding UPI's international reach. The partnership is designed to facilitate seamless QR-based transactions for travelers between the two nations.

Phased Rollout for Enhanced Connectivity

The integration will unfold in two primary phases. Initially, Indian tourists visiting Malaysia will be able to employ their existing UPI-enabled applications to scan DuitNow QR codes, Malaysia's national QR standard operated by PayNet, for merchant payments. This move aims to simplify transaction processes for millions of Indian visitors, granting them access to extensive acceptance points across Malaysia, from retail stores to eateries and tourism hubs. In a subsequent phase, the connectivity will be reciprocated, allowing Malaysian travelers in India to utilize their DuitNow apps to scan UPI QR codes and complete purchases. This expansion is expected to boost bilateral trade and tourism, aligning with Malaysia's "Visit Malaysia 2026" campaign.

Strategic Vision for Global Payments

Ritesh Shukla, MD and CEO of NIPL, highlighted the strategic intent behind the partnership, emphasizing the goal of building interoperable, real-time payment ecosystems worldwide. This initiative underscores UPI's evolution from a domestic payment solution to a global infrastructure. Praveen Rajan, CEO of PayNet, echoed these sentiments, stating that the linkage between DuitNow QR and UPI will significantly strengthen payment connectivity for all stakeholders, including travelers, merchants, and financial institutions, amid rising travel volumes between India and Malaysia.

Expanding UPI's Global Footprint

This agreement positions Malaysia among a growing list of countries where NIPL is actively enabling UPI acceptance through cross-border QR interoperability. Incorporated in April 2020, NIPL's mandate is to deploy India's UPI and RuPay systems internationally through various partnership models. The move is anticipated to offer Indian users a familiar and secure payment experience abroad, further cementing UPI's status as a leading real-time payment system.

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