PhonePe announced a partnership with LankaPay on Wednesday, May 15, to allow its users to pay across Sri Lanka via a unified payment interface (UPI). At a recent event to commemorate the collaboration, PhonePe announced that its app users traveling to Sri Lanka can use UPI to pay at LankaPay QR retailers.

The transactions will be handled by the UPI and the LankaPay National Payment Network. Users can use the LankaQR code to conduct secure and rapid payments without carrying cash or calculating currency changes. The money will be charged in INR, indicating the currency exchange rate.

Ritesh Pai, CEO of PhonePe International Payments, stated that the relationship with LankaPay provides Indian travelers with exceptional convenience by allowing them to use a familiar and safe payment option when travelling and paying at LankaQR merchant locations.

"We are excited about the potential of this collaboration that would enhance payment experience to Indian tourists and business travellers during their stay in Sri Lanka and also provide the merchants with a cost-effective proposition to card payments," stated Channa de Silva, CEO of LankaPay.

Governor of the Central Bank of Sri Lanka (CBSL), Nandalal Weerasinghe, spoke about the collaboration's ability to open up new prospects, increase competitiveness, and assist Sri Lankan merchants.

Speaking at the occasion, Santosh Jha, India's High Commissioner to Sri Lanka, stated that the UPI launch is a vital step toward both countries' greater goal of collaborating through a digital alliance.

"India is also supporting Sri Lanka in the development of its Unique Digital Identity Program and other components of the Digital Stack that has immense transformative potential for Sri Lanka and the bilateral economic partnership," Jha said.

PhonePe, which launched in August 2016, now has over 520 million registered users and a digital payments acceptance network of 38 million retailers. PhonePe processes more than 230 million transactions every day.

The PhonePe Group has also grown into the financial services and consumer technology sectors. The event also included a panel discussion on 'The Future of Digital Payments in Sri Lanka: Opportunities for Sri Lankan Businesses'.

National Savings Bank GM/CEO Shashi Kandambi, Hatton National Bank PLC COO Sanjay Wijemanne, LOLC Finance PLC Chairman Conrad Dias, and Dialog Finance Chairperson PLC Renuka Fernando discussed how businesses can use digital payment technologies and expand into new markets to remain competitive in an ever-changing economic landscape.

The event was attended by key Sri Lankan players such as banking and tourist sector representatives, payment system providers, and business associations.