NPST and Cosmos Bank Partner to Enable QR-Based UPI Merchant Acquiring for Co-operative Banks
Network People Services Technologies Ltd. (NPST), a leading provider of digital payments and banking technology, has announced a strategic partnership with Cosmos Cooperative Bank Ltd to expand digital payment acceptance infrastructure for co-operative banks across the country.
With over 11,000 branches, cooperative banks serve as the first financial touchpoint for small and micro businesses nationwide. Despite these deep-rooted relationships, most cooperative banks remain excluded from the digital payments ecosystem due to legacy systems and the operational complexities of merchant acquiring.
Through this partnership, cooperative banks can offer UPI QR code and Soundbox-based payment acceptance without needing to build digital backend infrastructure. Cosmos Bank will act as the acquiring Sponsor Bank, extending its services to partner banks. NPST, through its offline payment acceptance platform Qynx, will manage the entire merchant lifecycle, from device logistics and onboarding to field operations, technical integration, and compliance management.
The NPST-Cosmos model eliminates these barriers by providing a ready-to-deploy framework, enabling cooperative banks to roll out merchant acceptance services quickly and with minimal friction.
Elaborating on the partnership, Arti Dhole, Joint Managing Director, Cosmos Bank, said, "QR and Soundbox form the core of India’s offline digital payment acceptance infrastructure, yet achieving scale and operational excellence remains a challenge. Partnering with NPST, a proven leader in merchant acquiring, allows us to extend these capabilities to cooperative banks across the country. NPST’s expertise in managing the entire merchant lifecycle ensures that our partner banks can confidently offer seamless and secure digital payment solutions, expand financial inclusion, and strengthen India’s digital economy."
This initiative enables cooperative banks to offer QR codes starting at Rs.1.20 per day and soundbox devices starting at Rs.5 per device per day, making digital payment solutions more affordable and accessible for their merchant partners. This, in turn, helps banks strengthen merchant relationships, drive CASA deposit growth, and expand their reach through cross-selling of financial products. The initiative positions cooperative banks to remain competitive and relevant in a rapidly evolving digital payments ecosystem.
Deepak Chand Thakur, Chairman and Managing Director of NPST, stated, “Cooperative 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. Through our partnership with Cosmos Bank, we are delivering a scalable, technology-driven solution that empowers cooperative banks to overcome these barriers, accelerate their digital adoption, and enhance their capacity to serve underserved communities and drive inclusive growth across India.”
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