Short Description: India and Malaysia partner to link UPI and PayNet, aiming to revolutionize cheaper, faster, and more efficient cross-border payments between the two nations.
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Main Article:
In a significant move for fintech and cross-border payments, India and Malaysia have backed a landmark partnership between India’s National Payments Corporation of India (NPCI) and Malaysia’s Payments Network Malaysia Sdn Bhd (PayNet). This strategic UPI linkage aims to directly connect India’s Unified Payments Interface and Malaysia’s DuitNow system. The core objective is to facilitate instant, cost-effective, and seamless fund transfers between individuals and merchants in both countries, dramatically reducing the reliance on traditional, more expensive remittance channels.
This collaboration, announced during Indian Prime Minister Narendra Modi’s recent visit, marks a pivotal step in India’s digital payments push on the global stage. For users, the implication is straightforward: an Indian user with a UPI-enabled app will be able to send money to a Malaysian mobile number, and vice-versa, with transaction speeds akin to domestic payments. This not only promises lower transaction fees for the millions of students, tourists, and workers moving between the nations but also strengthens the overall economic corridor by boosting trade, tourism, and business efficiency.
The success of this India-Malaysia payments corridor could serve as a powerful blueprint for similar international integrations. It represents more than just a bilateral agreement; it’s a test case for the scalability of real-time payment systems globally. By establishing a model for secure, interoperable infrastructures, this tie-up challenges the dominance of legacy SWIFT networks and card systems for smaller-value transfers, paving the way for a new era in global fintech connectivity and financial inclusion.
Short Summary:
India and Malaysia’s support for linking NPCI’s UPI with PayNet’s DuitNow is set to transform cross-border payments, enabling instant and cheaper fund transfers. This strategic UPI linkage is a major milestone in India’s digital payments push and a landmark development for global fintech, creating a model for efficient international payment corridors that benefit individuals and businesses alike
