13 February 2024 12:04 am
In a groundbreaking move aimed at enhancing the convenience and security of digital payments for Indian tourists in Sri Lanka, a virtual launch event marked the introduction of the Unified Payments Interface (UPI)
transactions through LankaQR yesterday.
The initiative, spearheaded by a collaboration between NPCI International Payments Limited (NIPL) and LankaPay (Pvt.) Ltd, promises to revolutionise the tourist experience by providing a seamless payment solution.
The partnership between India and Sri Lanka further solidified during President Ranil Wickremesinghe’s visit to India in July 2023 and paved the way for innovative bilateral initiatives. Recognising India’s remarkable strides in digitalisation and its potential to drive economic development, Sri Lanka has committed to leveraging India’s Digital Public Infrastructure to enhance service delivery for its citizens.
Wickremesinghe, during his virtual address, emphasised the technological upgrade represented by LankaQR and NIPL, envisioning their widespread adoption, particularly among the Indian tourists visiting Sri Lanka.
He highlighted the significance of transactions between Sri Lanka and Tamil Nadu as well as Sri Lanka and Mumbai, especially for merchants, contributing to further connectivity between the two nations. With digital payments witnessing a surge in adoption within Sri Lanka, the introduction of the UPI transactions via LankaQR comes at a pivotal moment. LankaQR, already a preferred method for domestic transactions, offers a fast, secure and convenient way for the users to make payments with a simple scan of a QR code. With approximately 350,000 merchants already equipped to accept QR-based transactions, Sri Lanka is well prepared to extend this facility to the Indian tourists.
The collaboration between NIPL and LankaPay ensures that the Indian tourists can seamlessly utilise the UPI-enabled mobile applications to make payments at participating merchants across Sri Lanka. This development not only enhances the tourist experience but also strengthens the economic ties between the two nations.
As part of the initiative, 20 local banks and financial institutions in Sri Lanka have pledged their support, with plans underway to expand coverage to hot-spot tourism areas. State Bank of India’s involvement from the Indian side further underscores the significance of this partnership.
Looking ahead, the initiative aims to rapidly expand its reach, with an estimated 10,000 merchants expected to accommodate the UPI payments for the Indian nationals within weeks of the launch. By the end of March 2024, this number is projected to reach 65,000, encompassing a vast network of merchants catering to the needs of the Indian tourists.