Fonepay and NPCI Ready for Nepal-India Cross-Border UPI QR Payment

Both companies have now completed operational preparations and technological integration is in the final process.

Fonepay and NPCI are all set to launch a cross-border QR payment service, enabling QR-based payments for citizens of Nepal and India in both respective countries.

Fonepay Payment Service Ltd., Nepal’s largest payment network, and NPCI International Payments Ltd (NIPL), the international arm of the National Payment Corporation of India, made the announcement at the Global Fintech Fest 2023, a fintech conference, in Mumbai, India. They expressed their readiness to launch the first cross-border QR payment service connecting Nepal and India.

NIPL serves as the international subsidiary of NPCI, an umbrella organization responsible for operating retail payment and settlement systems in India.

This collaboration between Fonepay and NIPL will enable citizens of both nations to make instant payments through QR codes at various stores by using the mobile application certified by Fonepay and NPCI.

In a press release, it was stated that both companies have completed operational preparations, and the final stages of technological integration are in progress. Once this integration is completed, the companies can offer the service to their issuing and acquiring members, thereby enabling consumers and merchants to use this service.

In May, Fonepay also signed an agreement with LankaPay, Sri Lanka’s national payment network, to develop an interoperable digital payment system between Nepal and Sri Lanka.

In June, Nepal Clearing House Limited (NCHL) and NPCI International Payments Limited (NIPL) signed a memorandum of understanding (MoU) for cross-border digital payments. The Kathmandu Post reported that the system is expected to launch by November.

Fonepay is a payment system operator facilitating inter-bank person-to-person (P2P) and person-to-merchant (P2M) transactions through its interoperable network and mobile platforms.

Fonepay is regulated by Nepal Rastra Bank (NRB) and was the first mobile payment network to be licensed by NRB as a payment system operator (PSO).

Chairperson of Fonepay and President of F1Soft Group, Biswas Dhakal, said, “This remarkable launch marks a significant step towards enhancing financial connectivity between Nepal and India by leveraging technology for the benefit of our citizens. I am confident that this initiative will significantly contribute to the growth of trade, tourism, and economic relations between both countries, ultimately fostering prosperity and development.”

NIPL noted, “This initiative signifies our commitment to innovation in the fintech space and strengthens bonds between our nations. Under this partnership UPI-powered apps will be enabled for seamless cross-border merchant payments, to enhance the way people transact. We envision this partnership as a catalyst for greater financial inclusion and economic prosperity in the region and are excited to embark on this journey of transformation together with Fonepay.”