NTT Data Payment Services to Connect India’s UPI Across Asia via Hub Network
NTT Data Payment Services is developing a hub-based architecture to link India’s Unified Payments Interface (UPI) with fast payment systems across Asia. The initiative is designed to streamline cross-border retail transactions by replacing individual bilateral connections with a shared interoperable network.
What Happened
Senior executives at NTT Data Payment Services revealed plans to construct a shared-switch layer alongside central banks and switching firms in key Asian markets, including Japan, Thailand, Malaysia, and India. The hub-based framework aims to integrate local domestic systems into a unified network operating at scale.
Alongside the infrastructure strategy, the company launched Adaptis, its unified service brand for its digital payment suite across global markets. NTT Data initially established its presence in India’s payment ecosystem in 2018 when it acquired Atom Technologies from 63Moons, subsequently developing a unified platform for merchants and aggregators.
Key Highlights
- Hub-Based Model: Transitioning away from one-to-one bilateral links to a hub arrangement that connects local payment systems directly.
- Adaptis Brand Launch: Unveiled Adaptis as the unified service brand for NTT Data’s cross-market digital payment suite.
- Regional Integration: Building a shared-switch layer in collaboration with central banks or switching entities in India, Japan, Thailand, and Malaysia.
- Overcoming Bottlenecks: Addressing current cross-border payment delays caused by settlement gaps and regulatory differences across borders.
- Market Background: NTT Data entered the Indian digital payments market through the acquisition of Atom Technologies from 63Moons in 2018.
Why This Matters
Existing cross-border payments rely heavily on individual country-to-country arrangements. These bilateral connections are often slowed down by regulatory hurdles and settlement gaps across different jurisdictions. A shared-switch layer eliminates the necessity for multiple bilateral setups by allowing domestic payment networks like UPI to function together within a single unified framework.
Shinichiro Nishikawa, head of global payments strategy at NTT Data, stated that moving from bilateral connections to a hub-based model is aimed at connecting local payment systems so merchants and consumers can conduct cross-border transactions seamlessly.
What to Watch Next
As NTT Data Payment Services rolls out Adaptis across its operational regions, execution will involve working with central banks and payment switching firms across participating Asian countries to integrate local systems into the shared-switch layer.
Frequently Asked Questions
What is NTT Data Payment Services building for UPI?
NTT Data Payment Services is building a hub-based network that links India’s UPI with other Asian fast payment systems via a shared-switch layer.
What is Adaptis?
Adaptis is the newly introduced unified service brand for NTT Data Payment Services’ digital payment offerings across international markets.
Which markets are mentioned as part of this payment network?
The network strategy involves central banks or switching entities across Japan, Thailand, Malaysia, and India.
How did NTT Data establish its presence in India’s payment sector?
NTT Data entered the Indian market in 2018 by acquiring Atom Technologies from 63Moons, after which it built a unified merchant and aggregator platform.
Source: Based on reporting by The Times of India.