It is anticipated that PM Narendra Modi's trip to France will mark a crucial turning point in their bilateral ties. While India and France's defense cooperation will be the main topic of the two-day visit, both nations intend to deepen their relations in fields including the digital economy, manufacturing, and renewable energy.
According to a report in the Hindustan Times, India and France would also likely discuss the potential introduction of the digital payment technology known as the Unified Payments Interface (UPI) in France. The agreement is anticipated to be similar to the quick payment connectivity between Singapore and India.
By signing a contract in 2023, India's UPI and Singapore's PayNow made it possible for users in any nation to conduct cross-border transactions.
According to the agreement, customers of the two fast payment systems in any country can send money across borders using their respective mobile applications in a rapid, safe, and affordable manner.
A UPI-id, phone number, or Virtual Payment Address (VPA) can be used to transfer or receive money from India for funds stored in bank accounts or e-wallets. If the Macron administration in France chooses to connect UPI and Lyra, it will be the first such connection in all of Europe.
According to the source, PM Modi would announce the connectivity from a famous spot in Paris if all agreements are completed on time.
A Memorandum of Understanding (MoU) for the adoption of UPI and Rupay in France was signed in 2022 between the international branch of the National Payments Corporation of India (NPCI) and the Lyra Network.
Additionally, the UPI payment system from India has already been embraced by nations including the UAE, Bhutan, and Nepal. To expand UPI services in the US, Europe, and West Asia, the NPCI International is in negotiations.
According to data from the National Payments Corp. of India (NPCI) and the Reserve Bank of India's (RBI) May 30 annual report, total UPI transactions in FY23 were Rs 139.2 trillion. The platform, which was introduced in 2016, accounted for 73% of all non-cash retail payments in India in the year leading up to March. According to a recent PwC research, UPI transactions are expected to grow steadily and reach 1 billion per day by 2026–2027, making up 90% of all retail digital payments in the nation.
