The Central Reserve Bank of Peru (BCRP), with the collaboration of the Reserve Bank of India (RBI), signed an agreement with the National Payments Corporation of that country to implement a retail payments platform in Peru, similar to the Unified Payments Interface (UPI) platform, which currently operates in India.
UPI is a real-time payment platform, available permanently (24/7), that allows users to link multiple bank accounts in their mobile applications and pay through cell phone number, QR codes and virtual payment addresses ( UPI ID).
Through greater interoperability and a better user experience, UPI managed to expand the use of digital payments in India and is currently used by more than 410 million people and 340 million businesses in that country.
Additionally, with more than 117 billion transactions in 2023, UPI processes the largest volume of digital payments in the world.
BCRP: reliable and efficient real-time payments platform
This strategic alliance allows BCRP to establish a reliable and efficient real-time payments platform in the country. This innovative platform facilitates instant payments between individuals and businesses, thereby reducing dependence on cash transactions and expanding the use of digital payments to the large fraction of the unbanked population in Peru, promoting financial inclusion.
UPI’s open banking and collaborative approach enables greater connectivity and interoperability with both domestic and international payment networks, and will greatly foster innovation and resilience of the payments ecosystem in Peru.
The support of the RBI has been instrumental in this agreement. The objective of the BCRP is to promote greater access, security, redundancy and efficiency, as well as facilitate the introduction of new use cases in digital payments.
Furthermore, this new infrastructure will play a fundamental role in fostering innovation and facilitating the entry of new participants into the Peruvian ecosystem, which will undoubtedly offer new and accessible payment services for all, especially the unbanked population. in Peru, complementing existing payment infrastructures.
With this, it is expected to consolidate the rapid growth in the use of digital payments that has been observed in Peru, and make the retail payments ecosystem in the country more resilient and robust.
Source: Larepublica
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