Kathmandu: PhonePe India on Friday showcased its services powered by the Unified Payments Interface (UPI) platform at a special event held in Nepal.
The event brought together key stakeholders from the Nepalese financial landscape, including senior representatives from Banking sectors, Payment System Providers, UPI-accepting merchants and representatives from business associations. The event was supported by Nepal's largest payment system operator, Fonepay Payment Service Limited, which is also NIPL’s counterpart for Nepal.
The event saw a keynote address from Diwas Sapkota, CEO of FonePay Network, outlining the potential of UPI for Nepal's digital economy. This was followed by an engaging panel discussion on the Influence of cross-border payments on Nepal’s economy and the financial landscape.
The panel included esteemed panellists like Kumari Bank Chief Digital Banking Officer Anish Tamrakar, Nepal Tourism Board Manager Shradha Shrestha, e-Sewa CEO Jagdish Khadka, and Asian Development Bank (ADB) ICT/MIS Consultant Vivek Rana.
The panel discussion addressed a range of issues related to cross-border payments and their impact on Nepal's economy and financial landscape, as well as regulatory hurdles and compliance demands in facilitating international transactions. The panellists highlighted the positive influence of UPI on Nepal's tourism sector, particularly by enhancing the overall tourist experience through convenient cashless payments.
"This gathering has brought together key players from Nepal’s financial landscape, including Fonepay, leading business figures, and representatives from hospitality and tourism. It is a testament to the collaborative spirit that will ensure UPI's success in Nepal," said Ritesh Pai, CEO of International Payments, PhonePe.
"Nepal is a popular tourist destination, particularly for travellers from India. With UPI, Indian tourists can now enjoy the same convenient cashless payment experience they are accustomed to back home, using UPI-powered apps such as PhonePe. This will not only enhance their travel experience but also encourage digital transactions," he added.
The discussion further explored how cross-border payments impact the revenue streams and business models of financial institutions. Additionally, panellists examined the influence of UPI on consumer experience in Nepal, focusing on factors like convenience, interoperability, security, and cost-effectiveness.
Finally, the conversation delved into the broader macroeconomic implications of cross-border payments through alternative payment methods impacting underserved small and medium-scale entrepreneurs.
"Our four-year journey to bring cross-border payments in Nepal is finally successful, and UPI payment is Live in Nepal. As we introduce UPI payments in partnership with NPCI International and welcome PhonePe to Nepal, we see a future where smooth digital transactions boost economic growth and financial inclusion, benefiting merchants and businesses," said Diwas Kumar, CEO of Fonepay Nepal.
"We extend our heartfelt gratitude to the regulators and government agencies for their invaluable support, recognising innovations and supporting private sector efforts in facilitating Nepal’s journey towards digital transformation. We urge authorities to foster an ecosystem that embraces and supports innovations, promote partnership with private sector players in technological advancements and bring state-of-art products and services to Nepalese consumers," he added.
The programme culminated in a product showcase led by Pai. His presentation provided a comprehensive overview of PhonePe's journey, highlighting its evolution. The presentation also delved into how PhonePe, powered by UPI fosters a thriving ecosystem, driving the democratisation of payments across India.
This was followed by a demonstration of solutions that benefit both, the Indian tourists and Nepalese merchants. Drawing parallels with the Indian market success story, the presentation illustrated how PhonePe can replicate this success in Nepal.
Nepal is a very popular destination among Indian visitors who can now use UPI to pay at various tourist spots, retail stores, religious sites, and other popular locations. Users simply need to scan QR codes from their preferred UPI-enabled app at merchant locations that are enrolled in the Fonepay QR scheme in Nepal.
This is facilitated through Fonepay’s partnership with NPCI International Payments Limited (NIPL). Through this partnership, Fonepay has enabled QR-code-based payments across payment service providers, leading banks and wallets, allowing Indian travellers to use UPI for transactions.
Additionally, after a while, tourists and visitors from Nepal travelling to India will be enabled to utilise their financial instruments like wallet-based apps to scan the UPI QR code and make payments effortlessly.