NPST & Cosmos Bank partner to expand QR-based UPI payments

Network People Services Technologies Ltd. (NPST) has partnered with Cosmos Co-operative Bank Ltd to expand QR-based UPI merchant acquiring infrastructure for co-operative banks across India. The initiative aims to enable small and mid-sized co-operative banks to offer digital payment acceptance through QR codes and soundbox devices without requiring significant investment in backend infrastructure.

Co-operative banks collectively operate more than 11,000 branches nationwide and remain a critical financial access channel for small and micro businesses. However, most remain largely excluded from India’s digital payments ecosystem due to legacy systems and cost barriers associated with merchant acquiring.

Under the partnership, Cosmos Bank will serve as the acquiring sponsor bank, extending merchant acquiring capabilities to partnering co-operative banks. NPST will manage merchant lifecycle operations through its offline payments platform, Qynx, including device logistics, onboarding, technical integration, field operations and compliance support.

The model offers co-operative banks a ready-to-deploy framework designed to streamline rollout and expand digital acceptance points. Merchants will be able to access QR code solutions starting at 0.013$ per day and soundbox devices from $0.056 per day, to improve affordability for small businesses and drive wider adoption of UPI-based payments.

“QR and Soundbox form the core of India’s offline digital payment acceptance infrastructure, yet achieving scale and operational excellence remains a challenge,” said Arti Dhole, Joint Managing Director, Cosmos Bank. “Partnering with NPST allows us to extend these capabilities to co-operative banks across the country. NPST’s expertise ensures our partner banks can confidently offer seamless and secure digital payment solutions, expand financial inclusion, and strengthen India’s digital economy.”

According to NPST, the initiative will also support deeper merchant engagement and enable banks to drive CASA deposits and cross-sell financial products while strengthening their relevance in a rapidly evolving payments landscape.

“Co-operative banks have been pivotal to advancing financial inclusion in India. However, their limited scale often restricts their ability to embark on a comprehensive digital transformation,” said Deepak Chand Thakur, Chairman and Managing Director of NPST. “Through our partnership with Cosmos Bank, we are delivering a scalable, technology-driven solution that empowers co-operative banks to overcome these barriers and accelerate digital adoption.”