UPI’s linkage to SG’s PayNow a step closer to global payment brand ambitions: analyst

UPI registered a 75.9% growth in 2022.

The integration of its Indian instant payment platform Unified Payments Interface (UPI) with Singapore’s PayNow will expand UPI’s usage for international fund transfers and position itself as a global payment brand, an analyst said.

UPI registered a 75.9% growth in 2022, reaching S$1.5t (INR126t) in payments value processed during the year. This is a 194.3% compound annual growth rate from 2017, when UPI payments value in India totalled only US$6.9b.

“UPI has revolutionized the entire consumer payment space in India within just few years of its launch and now become a mainstream payment method and is widely used for day-to-day payments,” said Ravi Sharma, lead bank and payments analyst at GlobalData, noting that UPI has emerged as an alternative to cash and other traditional payment tools such as cards and bank transfers.

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Launched by the National Payments Corporation of India (NPCI), UPI allows customers to integrate bank accounts with mobile payment solutions and enables instant transfers between bank accounts from mobile phones using virtual ID, mobile number or QR code. This makes transactions quicker. 

Usage gained momentum during the COVID-19 pandemic, when consumers preferred to use non-cash payment methods, Sharma said.

To further expand its coverage, UPI was officially integrated with Singapore’s instant payment scheme, PayNow on 21 February 2023. Some of the banks that are part of this engagement include State Bank of India, Indian Overseas Bank, Indian Bank, ICICI Bank, and DBS, with others expected to join the list soon.