Tech the money & run smoothly
UPI should be charged or be conducted, as it has been since 2020, without a merchant discount rate (MDR) to boost digital transactions. Either way, technology adoption is at the fulcrum of the growth of digital financial services (DFS).
With UPI at the forefront, NPCI has formed strategic partnerships with several countries to enable digital payments and facilitate cross-border transactions. These collaborations not only provide Indian expats with a familiar way to pay but also enhance financial inclusion, while improving cost- and time-efficiency of digital payments in these regions.
By establishing UPI-based payment corridors with banks in West Asian and African countries, these initiatives are building a secure and reliable digital payment infrastructure that supports economic development. As instant payments grow, its influence on the economic landscape of these regions becomes increasingly evident. In India alone, DFS has played a critical role in expanding the digital economy 2.4 times more rapidly than the overall economy.
Outside India, take Kenya's M-Pesa, a mobile money service launched in 2007. Operated by Vodacom and Safaricom across seven African countries, M-Pesa has created a significant impact in the region, revolutionising finclusion.
A recent UNDP report showed that 17.6 mn users in Kenya, Tanzania, Ghana and Mozambique didn't have access to financial services before adopting M-Pesa. In fact, 98% of businesses surveyed said that M-Pesa helped them to do business, facilitating faster and
