UPI Goes Global: How India’s Digital Payment System is Reshaping Cross-Border Transactions

India’s booming digital payments ecosystem, built on the Unified Payments Interface (UPI), has made its international debut. What began as a domestic payment option is now upending the cross-border transaction, allowing for speedier, cheaper, more transparent international money transfers for millions of Indians who live outside their home country, and global merchants who deal with Indian customers.

What is UPI and Why It Matters?

Launched in August 2016 by government-controlled National Payments Corporation of India (NPCI), UPI enables account holders to send and receive money using their mobile phones. With its 24x7 availability, low transaction costs and instant settlement, UPI soon became the fulcrun of the country’s digital economy.

UPI, now processes over 12 billion transactions a month and its simplicity has become a global gold standard for digital payments by 2025.

Recent Global Expansion Moves in 2025

Here are some key developments that have taken UPI global:

1. UPI-Eurobank Cyprus Partnership: In June 2025, NPCI International Payments Ltd (NIPL) collaborated with Eurobank Cyprus to offer UPI QR code-based payments for Indian visitors and NRI's in Europe. That enables people to pay for goods in local stores while traveling abroad using Indian UPI apps like PhonePe, Google Pay, and Paytm, among others.
2. UPI-Bank of Thailand Integration: UPI was introduced in Thailand in early 2025, bringing real-time cross border payments for tourists from India and Thailand.
3. UPI-Link with Singapore’s PayNow: Existing AUSIIE – The India-Singapore UPI-PayNow linkage, in effect from 2023, supports seamless person-to-person (P2P) remittance at affordable charges and it is also expanding with time.
4. Other Countries Adopting UPI or Mulling It: UAE ,France,Nepal,Sri Lanka

NPCI is also in the process of a few partnerships in these markets.

Impact on NRI's, tourists and businesses

• For NRIs and Indian Tourists: They can now use their UPI apps that they already have and make payments in Indian currency and receive real-time currency conversion rates when in abroad.

• For Global Merchants: Now, merchants across the globe can reach out to Indian consumer spending power by accepting UPI payments directly.

• For Indian Businesses and Exporters: Cross-border trade settlements now have the potential to be faster, cheaper and less reliant on intermediaries.

Challenges and Future Roadmap

The growth for UPI overseas is significantly promising, however regulations apprehensions and KYCs are certain issues along with the interoperability with overseas banks.

NPCI aims to expand the UPI footprint to over 20 countries by 2027 and has foreign tie-ups lined up in Europe, the Middle East and Southeast Asia.

Conclusion

UPI’s internationalisation is a landmark for India’s digital economy. It’s no longer just a domestic payment mechanism but a significant force in revamping global cross-border transactions. This is not only India helping the world, it also becomes the foundation for NPCI to extend partnerships abroad so that common Indian and international people can send money in real-time at low cost.