In a significant move to internationalize India's flagship digital payment system, NPCI International Payments Limited (NIPL) has entered into a strategic partnership with Cambodia's leading financial institution, ACLEDA Bank Plc. The agreement paves the way for seamless acceptance of India's Unified Payments Interface (UPI) and Cambodia's KHQR payment system between the two nations.
A Landmark Agreement for Cross-Border Payments
The memorandum of understanding (MoU) was formally signed on Tuesday, marking a pivotal step in financial connectivity. The core objective of this collaboration is to enable travelers and businesses from both countries to make instant, secure, and cost-effective payments using their familiar home-grown QR codes. This means Indian tourists and expatriates in Cambodia will soon be able to pay merchants by simply scanning a KHQR code with their UPI-enabled apps. Conversely, Cambodian visitors to India can use their banking apps to scan UPI QR codes for transactions.
This initiative directly supports the vision of the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to expand the global footprint of UPI. By linking with Cambodia's KHQR system, the partnership eliminates the need for currency conversion hassles and high transaction fees typically associated with international card payments or forex services.
How the UPI-KHQR Integration Will Work
The technical integration will focus on interoperability between the two QR code standards. ACLEDA Bank, which boasts a massive network of over 30,000 merchants in Cambodia, will play a crucial role in deploying the necessary infrastructure. The bank will facilitate the acceptance of UPI payments across its extensive merchant base, significantly enhancing convenience for the growing number of Indian visitors.
Ritesh Shukla, the Chief Executive Officer of NPCI International, emphasized the transformative potential of the deal. He stated that this partnership is a concrete step towards building a robust cross-border payments ecosystem. It is designed not just for tourism but also to foster greater trade and commercial linkages between India and Cambodia by simplifying merchant payments.
ACLEDA Bank's President and Group Managing Director, Dr. In Channy, highlighted the mutual benefits. He noted that the integration will provide a secure, efficient, and familiar payment method for Cambodians traveling to India, while simultaneously offering the same ease to Indians in Cambodia. This is expected to boost economic engagement and people-to-people connections.
Broader Implications and the Road Ahead
This agreement is part of a series of international expansions for UPI. Similar linkages have been established or are in progress with countries like Nepal, Bhutan, Sri Lanka, Mauritius, and France. The Cambodia deal is particularly strategic, given the strong historical ties and increasing bilateral trade between the two Asian nations.
The successful implementation will rely on both entities working closely to ensure technical compatibility, security protocols, and regulatory compliance. Once live, it will set a precedent for other Southeast Asian nations to integrate with India's digital payment infrastructure.
The partnership between NIPL and ACLEDA Bank is more than a technical integration; it's a bridge connecting two digital economies. It promises to enhance the travel experience, reduce dependency on cash or cards abroad, and position UPI as a global player in the fast-evolving landscape of instant cross-border payments. This move is a win for diplomacy, tourism, and commerce, solidifying India's role as a pioneer in exporting its fintech innovations.
