The National Payments Corporation of India (NPCI) announced on Thursday that its overseas arm, NPCI International Payments Limited (NIPL), has signed an agreement with the Bank of Namibia (BoN) to develop an instant payment system similar to India’s Unified Payment Interface (UPI). This collaboration aims to modernize Namibia’s financial ecosystem by improving accessibility, affordability, and connectivity with domestic and international payment networks, as well as promoting interoperability.
Enhancing Digital Financial Services in Namibia
The strategic partnership between NIPL and BoN is focused on enhancing digital financial services in Namibia. The goal is to bolster real-time person-to-person (P2P) and merchant payment transactions (P2M) in the African nation. By leveraging NIPL’s expertise and technology, BoN aims to create a platform that will benefit the digital welfare of Namibia’s citizens.
Advantages of the Partnership
NPCI International CEO Ritesh Shukla highlighted that this collaboration will enable Namibia to gain sovereignty in the digital payments landscape. The partnership will also lead to enhanced payment interoperability and improved financial access for underserved populations. Bank of Namibia Governor Johannes Gawaxab emphasized that the objective of this initiative is to enhance accessibility and affordability for underserved populations, achieve full interoperability of payment instruments by 2025, modernize the financial sector, and ensure a secure and efficient National Payment System.
Promoting Financial Inclusion and Reducing Cash Dependency
Once the platform goes live, it is expected to facilitate digital transactions in Namibia, driving financial inclusion and reducing reliance on cash among underserved populations. The collaborative effort will focus on providing essential and affordable financial services to all, with particular attention to rural and informal sectors.
This partnership between NPCI and the Bank of Namibia holds great promise for modernizing Namibia’s financial landscape and promoting financial inclusion through the development of a UPI-like instant payment system.