In a strategic move to bolster its financial infrastructure, the Bank of Namibia has enlisted the expertise of NPCI International Payments to develop an instant payments system modeled after India’s highly successful Unified Payments Interface (UPI).
Drawing on the technological advancements and proven success of India’s UPI, Namibia aims to implement real-time person-to-person (P2P) and merchant payment solutions. The collaboration with NPCI International Payments is expected to modernize Namibia’s financial ecosystem, enhancing accessibility, affordability, and connectivity for both domestic and international payment networks.
Since its inception in 2016, India’s UPI has played a pivotal role in advancing digital payments, facilitating over 100 billion transactions and driving financial inclusion initiatives.
Established in 2020, NPCI International Payments focuses on promoting UPI and the RuPay card network beyond India’s borders. This partnership marks another milestone for the subsidiary, following recent collaborations with Nepal’s major payment network and Google Pay to expand its global footprint.
Johannes Gawaxab, Governor of the Bank of Namibia, underscores the significance of this initiative in aligning with the country’s strategic objectives. He highlights the goal of enhancing accessibility and affordability for underserved populations, achieving full interoperability of payment instruments by 2025, and modernizing the financial sector to ensure a secure and efficient National Payment System.
Gawaxab emphasizes that the central bank-led approach will minimize infrastructure costs for financial institutions, ensuring the sustainability and affordability of instant payment solutions for end-users. The envisioned system aims to foster seamless economic interactions by connecting individuals, businesses, and government entities across Namibia, including facilitating the payment of social grants and supporting digital entrepreneurship.
This collaboration signifies Namibia’s commitment to leveraging innovative technologies to propel its financial ecosystem into the digital age, ultimately fostering inclusive economic growth and empowerment.