India’s PhonePe Debuts in Lanka

PhonePe announced that it has enabled UPI payment acceptance in collaboration with LankaPay….reports Asian Lite News

India’s fintech company PhonePe Unified Payments Interface (UPI) has been launched in Sri Lanka. Central Bank of Sri Lanka Governor Nandalal Weerasinghe and India’s High Commissioner to Sri Lanka Santosh Jha attended the launch event in Sri Lanka.

In a post on X, the Indian High Commission in Sri Lanka stated, “Unlocking new frontiers in fintech connectivity! @PhonePe UPI payments goes live in Sri Lanka with HC @santjha & @CBSL Governor Dr. Nandalal Weerasinghe gracing the launch event. Giving a boost to @UPI_NPCI services, the launch will further strengthen ease for tourists in Sri Lanka.”

On May 15, PhonePe announced that it has enabled UPI payment acceptance in collaboration with LankaPay. In a statement, PhonePe announced that its app users visiting Sri Lanka can now make payments using UPI across LankaPayQR merchants across the nation.

According to the statement, PhonePe users can simply scan LankaQR code to make secure and quick payments without carrying cash or calculating currency conversions.

Earlier in February, India’s instant payment technology service, the Unified Payment Interface (UPI), was launched in Sri Lanka and Mauritius in a virtual event that was attended by Prime Minister Narendra Modi, his Mauritius counterpart Pravind Jugnauth and President of Sri Lanka Ranil Wickremesinghe.

India, which has emerged as a leader in fintech innovation and Digital Public Infrastructure placed a strong emphasis on sharing its development experiences and innovation with partner countries.

Addressing the occasion via video conferencing, PM Modi said it was an important event for three countries in the Indian Ocean region.

“Today is a special day for three friendly countries in the Indian Ocean region. Today we are connecting our historical relations in a modern digital way. This is proof of our commitment to the development of our people,” PM Modi said.

He said fintech connectivity will not only strengthen cross-border transactions but also cross-border connections.

“FinTech connectivity will not only boost cross-border transactions but also connections. India’s UPI (Unified Payment Interface) is now playing the role of ‘Uniting Partners with India’,” PM Modi said.He asserted that Digital Public Infrastructure such as UPI has brought about changes in the smallest of villages in India, as the technology is convenient and fast.In 2023, a record 100 billion transactions valued at Rs 2 trillion were made via UPI, PM Modi said.

“Digital Public Infrastructure has brought about a revolutionary change in India. Even the smallest businessman in our smallest village is making digital payments because it has convenience as well as speed,” he said.

UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer. (ANI)

India Leads in Mobile Wallet Payments

India has emerged as the global leader in mobile wallet payments, with 90.8 per cent of its population using mobile wallets for transactions in 2023, according to GlobalData 2023 Financial Services Consumer Survey.

In April 2024, India’s Unified Payments Interface (UPI) showcased robust performance, with daily product statistics amounting to Rs 19.64 lakh crore. Continuing this trend, the first half of May 2024 has already seen significant transaction volumes, reaching Rs 10.70 lakh crore by May 15th.

This achievement underscores India’s rapid advancement in digital payment solutions, surpassing other nations in mobile wallet adoption.

The report suggests that the trend of increasing mobile wallet usage is also evident across the Asia-Pacific (APAC) region.

The COVID-19 pandemic played a significant role in accelerating the shift from cash to electronic payments, further boosting mobile wallet adoption.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, says the disruptive potential of mobile wallets is also impacting smaller countries like Hong Kong’s consumer payments space, predicting a gradual displacement of cash transactions.

Sharma stated, “Mobile wallet usage is all set to disrupt the consumer payments space in Hong Kong and gradually displace cash. Widespread QR code infrastructure, the availability of mobile-based instant payment systems, and rising consumer and merchant preference all contributed towards mobile wallet usage.”

A high percentage of adults have bank accounts and widespread smartphone usage provides a solid foundation for mobile wallet adoption.

The presence of both domestic and international mobile wallet brands, like Apple Pay, Google Pay, PhonePe, etc offers consumers a variety of choices. The increasing acceptance of mobile payments by merchants further encourages usage.

GlobalData’s 2023 Financial Services Consumer Survey, conducted in Q2 2023, surveyed approximately 50,000 respondents aged 18+ across 40 countries. (ANI)

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