India and New Zealand Explore Adoption of Unified Payments Interface (UPI) for Enhanced Bilateral Trade

India and New Zealand are engaged in discussions regarding the potential introduction of the Unified Payments Interface (UPI) in New Zealand. This move is anticipated to significantly bolster ease of doing business, trade, and tourism between the two nations, according to an official statement from the commerce ministry.

The commerce ministers from both countries have welcomed the early stages of dialogue between the National Payments Corporation of India (NPCI) and Payments NZ concerning the implementation of the UPI system in New Zealand. The ministers have mutually agreed to continue deliberations on this initiative.

The introduction of UPI in New Zealand holds the promise of streamlining business operations, fostering seamless trade, and enhancing tourism activities between the two nations. It follows in the footsteps of other countries like the UAE, Bhutan, and Nepal, which have already adopted the UPI payment system.

The NPCI, the apex organization responsible for UPI services in India, has been actively forging international collaborations. In 2022, the NPCI signed an MoU with France’s Lyra, an online payment system. Subsequently, in 2023, UPI joined forces with Singapore’s PayNow, facilitating cross-border transactions between the two countries.

While the NPCI International is engaged in discussions to extend UPI services to countries like the US, European nations, and West Asia, the current talks with New Zealand emphasize the significance of cooperation between the two countries as members of the Indo-Pacific Economic Framework for Prosperity.

In addition to discussions about UPI, both commerce ministers acknowledged collaborative efforts to address trade facilitation challenges. The ministers are actively exploring viable alternatives to enable the import of wooden logs from New Zealand. Moreover, the recent commencement of Indian mango exports to New Zealand and the progress on India’s request for additional Vapour Heat Treatment facilities for mango exports were also welcomed during the discussions.

This strategic engagement between India and New Zealand underscores the commitment to enhancing bilateral trade relations, exploring innovative financial solutions, and promoting seamless business interactions in the Indo-Pacific region.