NPCI International Payments (NIPL), the international arm of National Payments Corporation of India (NPCI) has entered into an agreement with Nepal-based payment network Fonepay Payment Service, for cross-border UPI transactions between India and Nepal.
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The arrangement will facilitate QR-code-based, person-to-merchant (P2M) UPI transactions between the two countries. In the first phase, Indian consumers will be able to make instant, secure and convenient UPI payments across various business stores in Nepal to merchants on the Fonepay Network.
“This cross-border payment solution will significantly improve economic ties, commerce and tourism between the two nations, eventually promoting economic prosperity and progress. The seamless cross-border payment solution aligns with our commitment to drive digital economy to the greatest height and we anticipate a positive ripple effect on both local and regional economies,” said Fonepay CEO Diwas Kumar.
Fonepay is a Payment System Operator (PSO) and a subsidiary of the F1Soft Group. It facilitates inter-bank person-to-person (P2P) and person-to merchant (P2M) transactions through its interoperable network and mobile platforms. Regulated by Nepal Rastra Bank (NRB), FonePay is Nepal’s first mobile payment network to be licensed as a PSO.
The agreement with Nepal comes a week after NPCI International signed an MoU with Greece-based Eurobank S.A. to streamline cross-border payments between Greece to India using UPI rails. The agreement will enable Foreign Inward Remittance transactions from Greece to India and will help manage fund settlement, reconciliation and dispute resolutions in the respective jurisdictions.