India and Seychelles formalized a partnership to bring India’s Unified Payments Interface (UPI) to the island nation, aiming to facilitate seamless and cashless transactions for increasing Indian tourists, though live payments are yet to launch.
- UPI MoU signed between NPCI International and Central Bank of Seychelles.
- Indian tourists to use UPI for cashless payments in Seychelles once deployed.
- Implementation details and timeline still in technical review.
What happened
During Prime Minister Narendra Modi’s official visit to Seychelles, an important memorandum of understanding (MoU) was signed between NPCI International Payments Limited (NIPL) and the Central Bank of Seychelles. This agreement focuses on introducing India’s Unified Payments Interface (UPI) system in Seychelles, expanding the reach of India’s digital payment infrastructure beyond its borders.
This MoU was among nine bilateral accords signed during the visit covering diverse areas such as defense, maritime security, healthcare, and climate cooperation. However, while the agreement sets the foundation for UPI deployment, live payments using the platform are not available yet, with technical integration and merchant onboarding still underway.
Why it matters
Seychelles is a popular destination for Indian tourists, and tourism is a vital sector contributing significantly to its economy. The introduction of UPI would enable Indian travelers to make instant payments at local merchants by scanning QR codes using any UPI-linked app, eliminating the need for currency exchange and simplifying cross-border payments.
For Seychelles, adopting UPI could catalyze the growth of cashless transactions and strengthen economic ties with India, mirroring successful deployments in other countries like Singapore, UAE, and Mauritius. This also aligns with India’s broader Digital Public Infrastructure (DPI) initiative aiming to export its digital platforms internationally to promote interoperable and inclusive digital ecosystems.
What to watch next
The timeline for rolling out UPI payments in Seychelles remains unclear as the involved parties finalize details concerning local banks’ participation and merchant adoption strategies. Technical integration between NIPL and the Central Bank of Seychelles will play a crucial role in determining when UPI services go live.
Additionally, it will be important to monitor the reception of the system among merchants and tourists, as well as Seychelles’ broader digital payments landscape adapting to this change. The successful implementation could pave the way for other regional and African countries to adopt UPI and related digital public infrastructure platforms initiated by India.