UPI-PayNow Integration

Table of Contents

Context: India’s Unified Payments Interface (UPI) and Singapore’s PayNow have been recently integrated.

More on UPI-PayNow Integration News

UPI Integration: To enable faster remittances between India and Singapore, India’s retail payment system, UPI, and its equivalent network in Singapore, PayNow, have been integrated.
- Singapore has now become the first country with which cross-border Person to Person (P2P) payment facilities have been launched.
Process: The PayNow-UPI linkage is the world’s first such linkage featuring cloud-based infrastructure and participation by non-bank financial institutions.

It will allow users of the two quick payment systems in either nation to send money across borders quickly, securely, and affordably via their respective mobile apps.
It is possible to send or receive money from India using only a UPI-id, cellphone number, or Virtual Payment Address for money held in bank accounts or e-wallets (VPA).
Additional information such as bank account number, IFSC code are not required.
Benefits: This linkage will allow users from both countries to access faster and more cost-efficient cross-border remittances.
Eligibility for Remittances: Currently, participating banks in India for receiving remittances through the UPI-PayNow interlinkage are:

UPI: UPI or Unified Payments Interface, developed by National Payments Corporation of India (NPCI), is a quick payment method that enables the instantaneous transfer of funds through a mobile phone.

Through the creation of a Virtual Payment Address (VPA), the risk of sharing bank account details is eliminated.
The real-time system supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments.
PayNow: It is a fast payment system in Singapore.

It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.

Low- Cost Money Transfer: The UPI-PayNow Linkage will enable users of each of the two fast payment systems to make instant, safe, convenient, quick, low-cost fund transfers on a reciprocal basis without a need to get on board the other payment system.
- This linkage will reduce the remittance cost by 10%.
- This move will also bolster the trade and remittance flow between the two countries.
Facilitate Indian Diaspora: This Linkage will help the Indian diaspora in Singapore, especially migrant workers/students.
Interoperability: There will be interoperability of the two digital payment networks, allowing seamless remittances between the two countries at a highly competitive rate.
Boost Tourism and Business: This integration will also help Indian tourists pay in Singapore using UPI. It will benefit the individuals and businesses in both the countries.
Digital Connectivity: The link between the two systems also paves the way for establishing more comprehensive digital connectivity between the two countries.
Less Dependence on SWIFT: A global real-time linkage of the payment systems reduces the dependency on the SWIFT network, thereby optimizing time and resources and enhancing cross-border remittance.
Incentive for Innovators: This Linkage will create an enabling environment for innovators and regulators to accelerate the delivery of effective digital payments solutions.

Financial Inclusion: This is a testimony to India’s growth as the digital payments superpower, further it fosters an ecosystem for financial inclusion and digital India goals.
Aid India’s FinTech Growth: RBI’s partnership with the Monetary Authority of Singapore (MAS) brings together extensive resources which will aid India’s FinTech growth.
India and ASEAN: This will also establish a significant foundation for cross-border payments between India and ASEAN countries, creating a favorable environment for digital payments beyond borders.

India’s Unified Payments Interface (UPI) and Singapore’s PayNow have been recently integrated.