Christopher Waller, a member of the Federal Reserve Board of Governors, indicated that the United States may connect some private banks to India’s Unified Payments Interface (UPI) to create a speedier payment network. Speaking at the Global Fintech Fest in Mumbai, Waller stated that the United States now lacks a complete quick payment system due to risk management and regulatory concerns. Connecting with UPI could be a viable alternative, but it requires a solid value offer.
Waller noted that contemporary global payment systems are purposefully created with some frictions for compliance and risk management, which aid in the prevention of fraud and money laundering. The integration of UPI with US banks would pose more legal and regulatory hurdles than technological ones.
Waller praised the National Payments Corporation of India’s (NPCI) UPI technology, which processes over 10 billion transactions each month and was a driving force behind India’s digital payments revolution.
Furthermore, he emphasised the potential for public-private partnerships to improve cross-border payments, which is outlined in the G20’s roadmap for global payment system improvements. He acknowledged the importance of addressing legal, compliance, and operational issues in such endeavours.
