UPI expands globally: 7 nations that accept India’s digital payment system 

On Monday, the Ministry of External Affairs declared that UPI services have been broadened to include Sri Lanka and Mauritius. This expansion has made UPI functional in seven countries, enabling smooth digital transactions for users across borders. UPI, an immediate real-time payment system, allows money transfers across various bank accounts without disclosing sensitive information. Its worldwide expansion over the years signifies its increasing popularity and convenience for global users.

UPI Services in Seven Countries

1. Bhutan: On July 13, 2021, NPCI International Payments Ltd (NIPL) collaborated with Bhutan’s Royal Monetary Authority (RMA) to introduce BHIM UPI QR-based payments.
2. Oman: On October 4, 2022, NPCI, NIPL, and the Central Bank of Oman (CBO) signed an agreement to facilitate RuPay card acceptance and cross-border remittances.
3. Mauritius: UPI connectivity enables Indian visitors to transact with local businesses, while Mauritian tourists can use the Instant Payment System (IPS) app for transactions in India.
4. Sri Lanka: Indian tourists can use their UPI apps to make QR code-based payments at merchant locations in Sri Lanka.
5. Nepal: Nepali users can transfer funds to India via UPI-enabled mobile banking.
6. France: The Eiffel Tower now accepts UPI payments, facilitated by NIPL in collaboration with Lyra, a French payments company.
7. Southeast Asia: NIPL teamed up with Liquid Group to enable QR-based UPI payments in 10 countries, including Malaysia, Thailand, Philippines, Vietnam, Singapore, Cambodia, South Korea, Japan, Taiwan, and Hong Kong.

Overseas Functionality of UPI

• Users must register their bank accounts with a UPI-enabled mobile app to initiate international payments.
• Transactions can be conducted by scanning QR codes or entering recipient details and transfer amount.
• In Paris, UPI service is operational at the Eiffel Tower, allowing Indian visitors to make payments via QR code scanning.
• Users can activate international UPI payments through their UPI app settings, followed by verification with their UPI PIN.
• Transactions are similar to domestic UPI payments, with bank fees and foreign exchange rates applied.
• Payment can be made by scanning the merchant’s QR code, selecting the bank account, and entering the UPI PIN for confirmation.

The Unified Payments Interface, commonly known as UPI, has revolutionized digital payments in India. From purchasing groceries to buying your favorite gadget, one can swiftly make a UPI payment with no additional charges. UPI is no longer confined to India, and the number of countries accepting it continues to increase.

What is UPI and How Does It Work?

UPI is a mobile-first payment system developed in India by the National Payments Corporation of India (NPCI). It simplifies sending and receiving money by just scanning a QR code or using a user’s phone number. Unlike most digital payment systems, the amount gets directly debited to the linked bank account.

UPI can be used on BHIM, a first-party app. It can also be accessed via third-party platforms such as Google Pay, Amazon Pay, PhonePe, BharatPe, and many more. Most banks that officially operate in India support UPI payment, and unlike a credit or debit card payment, there is no charge involved in UPI payment.

To prevent fraudulent activities, NCPI has introduced various features like linking the account directly to the phone number, and if the SIM card is removed, UPI ceases to work, and at times, one might also face downtime due to service issues. To solve that, NCIP introduced UPI Lite, which does not require a PIN or internet to make transactions. However, there is a limit of Rs 500 per transaction and Rs 4,000 limit per day.

Countries That Officially Support UPI Payment

• Sri Lanka
• Mauritius
• France
• UAE
• Singapore
• Bhutan
• Nepal

Bhutan was one of the first countries to adopt UPI payments outside India in 2021, in collaboration with the Royal Monetary Authority (RMA) of Bhutan. It is also one of the first countries to adopt and issue RuPay bank cards.

France is one of the first countries in the European region to access UPI payments at the iconic Eiffel Tower in collaboration with Lyra. The government of France has confirmed that more merchants across France and Europe will soon start accepting UPI payments, which will be a significant development, especially for Indian travelers.

UAE, being the third-largest trade partner of India, recently announced a partnership with the government of India regarding the adoption of UPI payments in the country just a few days ago in collaboration with Mashreq, a major bank in UAE.

Sri Lanka and Mauritius are the latest countries to adopt India’s UPI payment system on February 12, helping Indian tourists to send and receive money in these countries.

Currently, UPI is available in seven countries, and the list is growing almost every month.

How to Use UPI Outside of India?

One must enable international payments on the respective apps to make UPI payments outside India. For example, if you are using UPI via the PhonePe app, the same has to be enabled on the platform from the settings menu. Once enabled, one will be able to make UPI payments with ease in international locations.

However, if you are traveling outside India, we don’t recommend just depending on the UPI payment, as only select locations and merchants can currently receive UPI payment. As these are international transactions, and you will be paying using Indian rupees, there could be a small fee that your bank might charge you to process the transaction.

How to Enable UPI International Payment

To enable UPI international payment on PhonePe, click on your profile picture in the top left corner, go to “payment management,” and select “international.” In the next menu, click on the bank that you would like to activate international UPI payment, and enter your UPI PIN to authenticate. Once enabled, the international UPI payment method will be active for six months, and one has to reactivate the same post that period.

To deactivate international payment, go to the same menu, click disable and enter your UPI pin to authenticate.

On top of that, you can also use a RuPay credit/debit card to make payments in countries like Bhutan, Nepal, Mauritius, Singapore, and UAE. Also note that, depending on the country, there will be a certain limit on how much you can spend per day, and making UPI payments will also need an active internet connection. Right now, only a select number of banks support UPI international payments.

Here is a Complete List of Banks That Support UPI Payments as Per the PhonePe Database

• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• City Union Bank Limited
• ESAF Small Finance Bank Limited
• The Federal Bank Limited
• Indian Bank
• IndusInd Bank Limited
• Karur Vysya Bank Limited
• Punjab & Sind Bank
• Punjab National Bank
• South Indian Bank Limited
• The Cosmos Bank
• Union Bank of India

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