Expanding QR-Based UPI Payments: A Transformative Partnership in India

In a significant move towards enhancing digital payment infrastructure in India, NPST has teamed up with Cosmos Co-operative Bank Ltd to broaden the scope of QR-based UPI merchant acquisition. This partnership is set to empower co-operative banks across the nation, enabling them to provide digital payment acceptance without the hefty investments usually required for backend infrastructure.

Revolutionizing Co-operative Banking

Co-operative banks hold a substantial presence in India with over 11,000 branches, serving as critical access points for financial services, especially for small and micro businesses. Despite their reach, many of these banks have been sidelined in the burgeoning digital payments economy due to outdated systems and the high costs associated with merchant acquisition.

This innovative initiative sees Cosmos Bank taking the role of acquiring sponsor bank, thus enabling partner co-operative banks to tap into new merchant acquiring capabilities. NPST will handle the entire merchant lifecycle through its Qynx platform, covering aspects like device logistics, onboarding, technical integration, field operations, and compliance support.

A Cost-Effective Model for Digital Payment Adoption

The partnership introduces a pre-built framework that allows co-operative banks to swiftly implement and extend digital acceptance points. Merchants can begin using QR code generator solutions for as little as $0.013 per day, with soundbox devices available from $0.056 per day. This affordable pricing is designed to encourage small businesses to adopt UPI-based payment solutions, thereby widening the digital payments ecosystem.

Key Benefits of the Partnership

• Scalability: The model provides a scalable solution tailored for co-operative banks, facilitating widespread digital payment acceptance.
• Operational Excellence: By leveraging NPST's expertise, partner banks can deliver seamless and secure digital payment solutions.
• Financial Inclusion: The initiative promotes financial inclusion by integrating co-operative banks into the digital payments landscape.

Arti Dhole, Joint Managing Director of Cosmos Bank, highlighted the importance of expanding the nation's offline digital payment infrastructure. The partnership with NPST, she noted, is a strategic step to empower co-operative banks for greater participation in the digital economy.

Strengthening Merchant Engagement and Financial Growth

This strategic alliance also aims to deepen merchant engagement, thereby allowing banks to increase CASA deposits and offer additional financial products. As a result, co-operative banks can maintain their relevance in an ever-evolving digital payments environment.

Deepak Chand Thakur, Chairman and Managing Director of NPST, underscored the critical role that co-operative banks play in advancing financial inclusion. However, their limited resources often hinder their ability to fully embrace digital transformation. Through this partnership, a scalable, technology-driven solution is delivered, enabling these banks to overcome such barriers and accelerate their digital adoption journey.

Looking Ahead

The collaboration between NPST and Cosmos Bank marks a significant step forward in integrating co-operative banks into India's digital payments ecosystem. By offering affordable, scalable solutions, this initiative not only empowers banks but also fuels broader economic growth. As digital payment acceptance becomes more accessible, the benefits cascade down to small businesses and consumers, ultimately strengthening the digital economy.

As this partnership unfolds, it represents a promising future for co-operative banks and their customers, setting a precedent for similar collaborations that could reshape the digital payments landscape across the country.