PhonePe has announced a partnership with LankaPay, enabling its users to make payments using UPI across Sri Lanka. During an event commemorating the collaboration, PhonePe stated that its app users travelling to Sri Lanka could utilise UPI to pay at LankaPay QR merchants.

These transactions will be facilitated by UPI and LankaPay National Payment Network. Users can conveniently scan the LankaQR code to execute secure and swift payments, eliminating the need to carry cash or perform currency conversions. The amount will be debited in INR, with the currency exchange rate displayed.

Ritesh Pai, CEO of International Payments at PhonePe, expressed that the partnership with LankaPay provides unmatched convenience for Indian tourists. They can now utilise a familiar and secure payment method while travelling and making payments at LankaQR merchant points.

Channa de Silva, CEO of LankaPay, expressed enthusiasm about the collaboration's potential to enhance the payment experience for Indian tourists and business travellers in Sri Lanka. He also noted the cost-effective proposition it offers to merchants compared to card payments.

Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), highlighted the collaboration's capacity to unlock new opportunities, enhance competitiveness, and bring benefits to Sri Lankan merchants.

Santosh Jha, the Indian High Commissioner to Sri Lanka, emphasised the significance of the UPI launch, highlighting its role in fostering a digital partnership between the two nations.

He also mentioned India's support for Sri Lanka's development initiatives like the Unique Digital Identity Program and the Digital Stack, which hold transformative potential for both countries' economic partnership.

Launched in August 2016, the PhonePe digital payments app boasts over 520 million registered users and a digital payments acceptance network comprising 38 million merchants. With over 230 million daily transactions processed, PhonePe has established itself as a prominent player in the digital payments landscape.

The PhonePe Group has diversified into the financial services and consumer tech sectors. A panel discussed 'The Future of Digital Payments in Sri Lanka, Opportunities for Sri Lankan Businesses', exploring strategies for leveraging digital payment tech to remain competitive. Participants included leaders from National Savings Bank, Hatton National Bank PLC, LOLC Finance PLC, and Dialog Finance PLC.

Representatives from Sri Lanka's banking and tourism sectors, along with payment system providers and business associations, were key attendees at the event.

Image source: The Economic Times