Recently, India unveiled the Unified Payments Interface UPI–Universal Postal Union (UPU) Integration project at the 28th Universal Postal Congress in Dubai, enhancing cross-border digital remittances.

About the UPI–UPU Integration

• The initiative is a collaboration between the Department of Posts, National Payments Corporation of India International Payments Ltd. (NIPL) and the UPU.
• Purpose: To integrate India’s UPI with the UPU Interconnection Platform.
  • To provide affordable, instant, and secure cross-border remittances using the global postal network
• Technology Involved: Combines UPI’s real-time payment architecture with UPU’s postal interconnection systems.
  • Utilises India Post’s extensive digital and physical reach.
• Potential Impact:
  • Reduces remittance costs and delays supporting UN SDG target of cutting global remittance cost below 3% by 2030.
    • SDG 10 (Reduced Inequalities), specifically Target 10.c, aims to cut global remittance costs to below 3% by 2030 to promote financial inclusion and reduce inequalities.
  • Expands financial inclusion, particularly for migrant families and underserved communities.
  • Generates new revenue streams for postal administrations.
  • Enhances India’s role in global financial architecture and e-governance diplomacy.

About Unified Payments Interface (UPI)

• UPI is India’s instant real-time payment system enabling peer-to-peer and merchant payments.
• Establishment: Launched in 2016 by the National Payments Corporation of India (NPCI).
• Technology Used: Works on Immediate Payment Service (IMPS) rails, using mobile numbers, QR codes, and virtual payment addresses.
  • It ensures 24×7 interoperability across banks and fintech platforms.
• UPI Applications:
  • India: Processes bill payments, retail purchases, government services, and financial inclusion schemes.
  • Globally: Accepted in the UAE, Singapore, France (Eiffel Tower), Sri Lanka, Nepal, and Bhutan; now expanding via UPU.
  • In 2024–25, processed 185 billion transactions worth USD 2.83 trillion, nearly half of global digital payments.

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