NPCI International Payments Limited (NIPL), the global arm of the National Payments Corporation of India (NPCI), has joined forces with HitPay, a Singapore-based full-stack payments infrastructure firm, for expansion of the Unified Payments Interface (UPI) network in Singapore. This partnership aims to facilitate QR code-based UPI payments across over 12,000 merchants in Singapore, providing Indian travelers with seamless transactions at tourist spots, retail outlets, and restaurants.
With over 1.2 million Indian visitors traveling to Singapore in 2024, this collaboration ensures a cost-effective and reliable payment method. Additionally, the partnership will enable businesses to accept UPI payments for both online and offline transactions, enhancing Singapore’s digital payment ecosystem. This move aligns with UPI’s international expansion strategy, following successful partnerships in countries like the UAE, Canada, and Sri Lanka.
1. Introduction: UPI Expansion in Singapore
Unified Payments Interface (UPI) has revolutionized India’s digital payment landscape, offering a fast, secure, and cost-efficient alternative to traditional banking methods. Now, NPCI is expanding UPI’s reach globally, with Singapore emerging as a crucial market due to its strong financial infrastructure and increasing Indian tourist footfall. The recent partnership with HitPay marks a significant step toward strengthening UPI’s international presence.
2. About NPCI and NIPL
2.1 NPCI’s Background
The National Payments Corporation of India (NPCI) was established in 2008 to create a robust digital payments ecosystem in India. NPCI introduced UPI in 2016, which quickly became the country’s most widely used payment system, processing billions of transactions every month.
2.2 NPCI International Payments Limited (NIPL)
NIPL was launched in 2020 to take UPI beyond India’s borders. The company aims to partner with global financial institutions to facilitate seamless digital payments for Indian consumers traveling abroad.
3. HitPay: A Leading Payment Infrastructure Provider
3.1 Company Overview
HitPay is a Singapore-based full-stack payments infrastructure provider catering to businesses across the Asia-Pacific (APAC) region. It offers integrated payment solutions for e-commerce, point-of-sale (POS), and business-to-business (B2B) transactions.
3.2 Revenue Model
HitPay generates revenue through transaction fees, merchant subscriptions, and value-added services like analytics and fraud prevention tools. It provides cost-effective alternatives to traditional credit card payments, helping businesses save up to 50% on processing fees.
4. Key Features of the NPCI-HitPay Partnership
4.1 Facilitating QR Code Payments
The expansion enables Indian travelers to make UPI payments via QR codes at various establishments across Singapore. This eliminates the need for cash or international card transactions, making payments more efficient.
4.2 Merchant Adoption Across Singapore
The UPI payment network will progressively roll out to over 12,000 merchants, including restaurants, tourist attractions, and retail stores. Businesses can integrate UPI via HitPay’s existing platforms such as Shopify, Wix, and WooCommerce.
4.3 Online and Offline Payment Flexibility
Merchants can now accept both online and in-store UPI transactions, catering to e-commerce and brick-and-mortar businesses alike.
5. Market Insights and Industry Trends
5.1 Growing Demand for UPI in International Markets
Countries like the UAE, Maldives, Nepal, and Canada have already integrated UPI into their financial systems. Singapore, with its thriving digital economy, represents another significant milestone in UPI’s expansion.
5.2 Decline in UPI Transaction Volume in India
Despite global expansion, UPI transactions in India saw a 5% month-on-month drop in February 2024, totaling 16.11 billion transactions. The value of these transactions declined by 6.47% to INR 21.96 lakh crore. This trend highlights the importance of diversifying UPI’s presence beyond India.
6. Future Implications and Expansion Plans
6.1 Strengthening UPI’s Global Presence
Following this partnership, NPCI aims to extend UPI services to more countries, enhancing cross-border digital payments.
6.2 HitPay’s Expansion Strategy
HitPay is expanding its cross-border payment solutions by integrating with regional networks such as PayID (Australia), PromptPay (Thailand), and QRIS (Indonesia). Plans are underway to introduce DuitNow in Malaysia by 2025.
7. Learning for Startups and Entrepreneurs
7.1 Importance of Strategic Partnerships
The NPCI-HitPay collaboration exemplifies how strategic alliances can accelerate global expansion. Startups should explore partnerships to leverage established networks in new markets.
7.2 Digital Payment Trends
With digital transactions becoming the norm, startups must integrate innovative payment solutions to stay competitive.
7.3 Cost-Effective Payment Solutions
Businesses adopting cost-efficient payment methods like UPI can improve profitability by reducing transaction costs and enhancing customer convenience.
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