PhonePe has launched its UPI services in Sri Lanka recently. The Bengaluru-based company has partnered with LankaPay to enable PhonePe UPI payments in the country. It will allow Indian travellers to make UPI payments in Sri Lanka via PhonePe app. All they need to do is scan the LankaQR code to make the payment.
The payments via the PhonePe app in the island nation will be facilitated by LankaPay NationalPayment Network. Indian travellers in Sri Lanka will no longer need to carry cash and worry about currency conversions as the amount will be debited in Indian currency, showing the currency exchange rate.
The launch event was attended by India's High Commissioner to Sri Lanka, Santosh Jha, and the Governor of the Central Bank of Sri Lanka, P. Nandalal Weerasinghe, along with banking sector executives, payments system providers, and business associations.
Prime Minister Narendra Modi, along with Sri Lanka's President Ranil Wickremesinghe, jointly inaugurated the launch of UPI services in Sri Lanka in collaboration with LankaPay on February 12.
Indian tourists have significantly contributed to boosting Sri Lanka's economy, which faced its worst crisis in 2022, resulting in a political change of guard.
Meanwhile, The use of Unified Payments Interface (UPI) for digital and cashless payments is gaining popularity in India. People are using UPI not only for purchasing daily essentials but also for buying expensive home appliances, high-end gadgets, and designer clothing. However, experts caution that the quick and seamless digital transaction process via UPI may lead people to overspend on items they may not need. The convenience of UPI/QR code payments via smartphones is driving this trend.
A recent survey conducted by IIIT Delhi revealed that nearly 74 percent of people in the country are overspending as a result of using UPI and other digital payment methods.
"The convenience and ease of digital transactions through UPI, in comparison to cash, may indeed lead to lower awareness of spending, as transactions are seamless and reduce the tangible feel of money leaving one's possession," Prabhu Ram, Head, Industry Intelligence Group at market intelligence firm CMR, told IANS.
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