The Unified Payments Interface (UPI) of India has gone global with its cross-border linkage with Singapore's PayNow, marking a significant milestone for the Indian diaspora.
The move will facilitate seamless financial transactions between the two countries, allowing customers of participating financial institutions to send and receive funds in real-time using their mobile phone numbers, UPI identity or Virtual Payment Address (VPA).
The linkage has been hailed by Prime Ministers Narendra Modi of India and Lee Hsien Loong of Singapore
The linkage was demonstrated by the Reserve Bank of India’s Governor Shaktikanta Das and the Monetary Authority of Singapore’s Managing Director Ravi Menon with live "cross-border transactions".
With this partnership, Singapore has become the first country to launch cross-border Person to Person (P2P) payment facilities.
The move paves the way for cross-border payments between India and ASEAN countries, fostering a favorable environment for digital payments beyond borders.
Moreover, this partnership presents an excellent opportunity for small and medium-sized businesses that operate with partners present in Singapore, offering them a service to optimize cross-border payments or collection.
This development marks a significant step forward for digital payments in the region.
It is expected to have far-reaching implications for the future of cross-border payments.