Japan Explores New Avenues to Join India’s UPI Payment System

Japan is considering the possibility of joining India’s UPI payment system and fostering collaboration on the digital identity framework, as stated in an official announcement on Friday. The Unified Payment Interface (UPI) has gained significant traction among various nations, such as Bhutan, Nepal, Singapore, and the UAE. These countries have enthusiastically adopted UPI as a pivotal component of their payment ecosystems.

Japan Explores New Avenues to Join India's UPI Payment System

Wherever we present Prime Minister Modi’s Digital India vision, be it at prominent global forums such as the G20, SCO (Shanghai Cooperation Organisation), or G7, it garners significant attention and appreciation,” expressed Ashwini Vaishnaw, the Union Minister for IT and Telecom. “People recognize how Prime Minister Modi has made digital technology accessible to all. I extend my gratitude to the Japanese Digital Minister for wholeheartedly embracing Prime Minister Modi’s profound and extensive vision of Digital India.”

Earlier today, Japanese Digital Minister Kono Taro, during an interview with a media channel, announced that Japan is contemplating joining India’s UPI system and exploring the possibilities of mutually recognizing digital identities. “Just last month, we convened the G7 Digital Ministers’ meeting, where our Indian counterpart, Minister Vaishnaw, actively participated. Currently, Japan and India are actively working towards promoting digital cooperation.”

“Our organisation is actively exploring the possibility of integrating with the Indian Unified Payment Interface (UPI) system. We are thoroughly assessing the potential benefits and implications of joining this renowned payment ecosystem.Additionally, we are exploring the prospects of mutual recognition of e-IDs. This cooperation will commence with a focus on interoperability, ultimately leading to enhanced collaboration,” Taro elaborated.

A recent report, published last month, highlighted the impressive performance of India’s digital payment landscape. In 2022 alone, UPI, debit and credit cards, as well as prepaid payment instruments such as mobile and prepaid cards, facilitated a staggering 87.92 billion transactions, amounting to Rs. 149.5 trillion. Among consumers, Person-to-Merchant (P2M) and Person-to-Person (P2P) transactions emerged as the preferred payment methods, with a combined market share of 84 percent in terms of transaction volume, according to the India Digital Payments Annual Report by Worldline.

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