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 is aimed at enabling 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 operate more than 11,000 branches nationwide and remain an important financial access channel for small and micro businesses. However, many remain excluded from India’s digital payments ecosystem due to legacy systems and the high cost of merchant acquiring.
Under the partnership, Cosmos Bank will act as the acquiring sponsor bank, extending merchant acquiring capabilities to partnering co-operative banks. NPST will oversee merchant lifecycle operations through its offline payment’s platform, Qynx, covering device logistics, onboarding, technical integration, field operations and compliance support.
The model provides co-operative banks with a ready-to-deploy framework designed to simplify rollout and increase digital acceptance points. Merchants will have access to QR code solutions starting at $0.013 per day and soundbox devices from $0.056 per day, offering affordability for small businesses and supporting wider UPI adoption.
“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.
She added, “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.”
NPST said the initiative will support deeper merchant engagement and help banks drive CASA deposits and cross-sell financial products while maintaining their relevance in a rapidly changing 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.
He noted, “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.”
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