Prime Minister Narendra Modi has declared that France will soon adopt India’s native
Unified Payments Interface (UPI), which is a big development for the country’s fintech
sector. The UPI platform’s global reach is increased by this action, which also denotes the
strengthening of India and France’s bilateral relations. The statement was made while the
prime minister was on his official visit to France, emphasising the significance of this
partnership.
Benefits for Indian Tourists:
Indian tourists visiting France will now have the convenience of making rupee payments
using UPI. The renowned Eiffel Tower in Paris, France will serve as the inaugural launch
location for this service.
The National Payments Corporation of India (NPCI), the entity behind UPI, and France’s
quick and secure online payment system, Lyra, have agreed to implement UPI in France. This
collaboration intends to promote closer economic connections and improve coordination
between the payment platforms of the two countries.
Expanding UPI’s International Reach:
Following successful implementations in other nations like the UAE, Bhutan, and Nepal, UPI
has now been adopted in France.
Additionally, a contract was signed with PayNow in Singapore and UPI, allowing for
cross-border transactions between the two nations. The expansion of UPI’s services to other
regions, including the United States, more European nations, and West Asia, is also being
discussed.
Reduced Remittance Charges:
One of the main advantages of utilising UPI in France is the decrease in international
remittance charges. Traditional overseas payments made using credit or debit cards frequently
come with transaction and conversion fees that can cost anywhere between 0.99% and 3.5%
of the total payment.
However, using UPI avoids or reduces these fees because payments are conducted in rupees
thanks to a partnership between France’s Lyra Network and India’s NPCI. It’s crucial to
remember that there can still be certain transaction and exchange rate costs related to
cross-border forex transactions. These costs can change depending on banks, payment service
providers, and regulatory requirements.
Conclusion:
In addition to enhancing bilateral ties between France and India, the implementation of UPI
in France gives Indian tourists a practical and affordable payment alternative. As UPI
expands internationally, nations are seeing the benefits and effectiveness of this Indian rapid
payment system.
UPI’s cross-border features enable both consumers and companies to send money abroad
more quickly and inexpensively. UPI’s potential for widespread acceptance and financial
inclusion is becoming more and more promising as it expands.
