National Payments Corporation of India (NPCI) International Limited says strengthening Malawi’s payment infrastructure could reduce the cost of printing money and lower digital transaction charges.
Speaking during a visit to Malawi, NPCI managing director and CEO Ritesh Shukla noted growing concerns among consumers about high digital payment fees. He said a robust system—similar to India’s Unified Payments Interface (UPI), which his organisation developed—can drive efficiency and economic savings.
Shukla explained that Malawi could save up to two percent of its gross domestic product (GDP), currently spent on printing and handling cash, by shifting toward digital payments. Faster and more transparent money movement, he added, would not only reduce costs but also free up resources for infrastructure, education and healthcare.
He also highlighted benefits for small businesses, saying digital transaction records improve access to credit.
“If transactions flow through bank accounts, it becomes easier for banks to assess and lend to small enterprises,” he said.
At a dinner hosted by the Indian High Commission, High Commissioner Amararam Gurjar said Malawi’s push toward digital payments aligns with government priorities. He referenced Arthur Peter Mutharika’s emphasis on digitising the economy to enhance efficiency, transparency and growth, describing potential adoption of UPI as a “game changer” for Malawi’s fintech sector.
Private sector players echoed similar sentiments. Mount Meru country manager Ketan Kotecha said digital platforms like UPI could significantly reduce transaction costs, which remain high for both consumers and businesses. Lower costs, he said, would improve business efficiency and financial inclusion.
Meanwhile, the Reserve Bank of Malawi (RBM) has launched its 2026–2030 National Payments Systems Strategy, targeting lower charges and improved network reliability. Deputy Governor Kisu Simwaka acknowledged public concerns over high fees and poor connectivity, especially in rural areas, and pledged regulatory action to improve affordability and service delivery.
Industry stakeholders, including mobile money operators and the Digital Financial Services Association, attribute high transaction costs to infrastructure challenges such as unreliable electricity and limited data coverage. They have called for closer collaboration between RBM and the Malawi Communications Regulatory Authority to address these issues.
Globally, UPI has demonstrated significant scale. As of 2025, it accounted for about half of the world’s digital transaction volume, with over 250 billion annual transactions worth $3.4 trillion. By March 2026, 705 banks were connected to the platform, processing 22.64 billion transactions valued at $317 billion in a single month—highlighting its potential relevance for emerging markets like Malawi.
