Dutch payments infrastructure company TerraPay has joined forces with India’s NPCI International Payments (NIPL) to facilitate cross-border transactions for Indian consumers and merchants.
As part of the alliance, Indian consumers and merchants who have an active Unified Payments Interface Id (UPI Id) will be able to transfer money abroad.
This service will utilise TerraPay’s infrastructure and the UPI network.
The UPI-enabled QR code-based service will allow Indian customers with active UPI IDs to make transactions through 350 million bank accounts across the globe.
In addition, both the firms seek to expand the use of UPI payments and QR for international transactions by merchants.
The customer-initiated UPI payments and QR transactions require a two-factor authentication, which is capable of minimising disputes and issues related with grievance redressal.
Using the tie-up, TerraPay also expects to create interoperability among different financial instruments it drives as well as offer digital payments solutions to marginalised or underserved communities.
UPI, which is an instant real-time payments (RTP) system developed by National Payments Corporation of India, is designed to provide secure person-to-person (P2P) and person-to-merchant (P2M) payments in India.
Last year, $940bn worth of transactions were done through UPI.
TerraPay president of product and solutions Ritesh Pai said: “Our ambition and aim is to collaborate and develop faster, more innovative, and transparent cross-border payment solutions.
“This effort is with an intent to establish the foundation of a new reality. We will act as a catalyst whether it’s enabling interoperability between schemes or countries by bringing in ubiquity, convenience, scale, transparency, and affordability.
“Our partnership with NIPL is one such strong step to make cross-border payments immediate, cost-effective, accessible for all, and settled in a secure medium thus adding value to the global payments ecosystem.”
Early this month, TerraPay partnered with fintech firm Zai to provide their Australian consumers with cross-border payments service.