UPI expands its acceptance in French retail

UPI, the Indian instant payment system, is rolling out in French retail. Galeries Lafayette has announced that the solution is now available in its stores. The National Payments Corporation of India's (NPCI) globalization ambitions have motivated UPI's acceptance abroad, and the Indian solution has been able to rely on players such as Lyra to ensure that the project runs smoothly.

FACTS

• Following the launch of UPI at the Eiffel Tower in January, the Indian means of payment is now making its debut at Galeries Lafayette.
• Indian tourists visiting Paris will now be able to pay with their UPI instant payment system directly at the brand's in-store payment terminals.
• In concrete terms, the payment method has been integrated directly into the Galeries Lafayette checkout software. When a customer wishes to pay via UPI, the sales assistant simply clicks on a button. A QR code is then displayed, and the customer scans and validates the payment.
• This integration of the payment system was made possible thanks to the collaboration of several players.
• Lyra, an international payments company, handled acceptance of the payment solution.
• Lundi Matin, a management software group, was responsible for the accounting aspects.
• Finally, NPCI International took charge of the solution's deployment.
• Lyra has already identified several locations and sectors for developing the Indian solution. For example, the French company has begun discussions with SCNF, Lagardère Travel Retail for airports, and hotel chains.

CHALLENGES

• UPI's international vision: The success of the solution in its home country has prompted NPCI to establish a partnership with Google with the aim of internationalizing UPI. The aim is to extend the solution's acceptance abroad and then develop similar systems in other countries. The stakes linked to UPI usage volumes have also prompted Lyra to invest in the deployment of the Indian solution. France is the first European country to accept UPI.
• A major potential gain for the retail sector: Retailers like Galeries Lafayette are counting on an increase in Indian tourism, and are preparing to accept their means of payment in the best possible way. Indian tourists account for around one million visits to France every year, a figure that is rising steadily. Major retailers such as Galeries Lafayette are obligatory stops for tourists, who will all be able to pay thanks to UPI.
• Record growth: The nationwide rollout of the instant payment solution has been an unprecedented success. Even though its deployment was strongly encouraged by the government, UPI has grown rapidly and is now used by over 420 million Indians. UPI will account for 40% of global instant payment volume by 2021, and will record almost 100 billion transactions by 2023.

MARKET PERSPECTIVE

• Payment solutions are heading towards globalization. In India, UPI has established itself as the local benchmark, and its users are now using it internationally.
• The model in question is EPI, which launched its Wero wallet in Germany last week. The challenge is clear: to offer a global European solution in the long term, and to ignore the dissidents (players already well established in Scandinavian and Southern European countries, for example).