Discover how India’s UPI system is going global in 2025. Learn about countries using UPI International, its benefits, challenges, and future potential.
🌍 Introduction: The Rise of India’s Digital Payment Revolution
In the last few years, India has transformed into one of the world’s fastest-growing digital payment markets — and at the heart of this revolution is the Unified Payments Interface (UPI).
What started as a simple, India-only payment system in 2016 has now evolved into a global digital payment model, inspiring countries around the world.
As of 2025, UPI is no longer limited to domestic transfers. It’s going international, enabling Indians to pay globally and foreign users to transact with Indian merchants seamlessly.
This article will walk you through:
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How UPI International works,
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Which countries have adopted it,
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The benefits of global UPI payments,
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India’s vision for a cashless global economy, and
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What the future of UPI looks like in 2025 and beyond.
💡 What Is UPI International?
UPI International is an extended version of India’s UPI (Unified Payments Interface) that allows users to make cross-border payments directly from their Indian bank accounts using UPI apps like PhonePe, Google Pay, or Paytm.
It eliminates the need for currency exchange, international cards, or complex banking intermediaries.
In simple terms — imagine paying for your coffee in Dubai, Singapore, or France using your regular Indian UPI app. That’s exactly what UPI International makes possible.
🔧 How Does UPI International Work?
Here’s how the system functions behind the scenes:
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Interconnected Payment Networks:
The National Payments Corporation of India (NPCI) has partnered with global networks like PayNow (Singapore) and Mashreq (UAE) to enable real-time transactions. -
Currency Conversion at Source:
When a user pays abroad using UPI, the app converts INR to local currency instantly using dynamic Forex rates. -
International Merchant Integration:
Foreign merchants who partner with local banks supporting UPI QR codes can accept payments from Indian users directly. -
NPCI’s Subsidiary – NIPL:
NPCI International Payments Limited (NIPL) manages UPI’s overseas expansion, signing partnerships with payment systems in multiple countries.
🌐 Countries Where UPI Is Accepted in 2025
As of 2025, UPI has expanded across multiple continents. Here’s a list of countries where UPI International is either active or under implementation:
1. Singapore 🇸🇬
UPI-PayNow integration allows instant transfers between India and Singapore. Users can send money using mobile numbers linked to bank accounts.
2. United Arab Emirates (UAE) 🇦🇪
Mashreq Bank and NPCI have partnered to let Indian tourists and NRIs make payments using UPI QR codes at select merchants.
3. Nepal 🇳🇵
The first foreign country to adopt UPI infrastructure. Nepal’s payment system is powered by the same backend as India’s.
4. Bhutan 🇧🇹
Bhutan became one of the earliest adopters of the UPI QR system, promoting tourism and cross-border payments.
5. France 🇫🇷
NPCI and Lyra Network launched UPI payments at popular tourist spots and retailers across France in 2024.
6. Sri Lanka 🇱🇰 & Mauritius 🇲🇺
Both nations joined the UPI family in early 2024 through agreements signed during G20 collaborations.
7. Oman, Qatar, and Saudi Arabia 🇴🇲🇶🇦🇸🇦
These Gulf countries are in advanced talks with NIPL to enable UPI-based merchant payments and remittances for the large Indian diaspora.
8. United Kingdom & Europe 🇬🇧🇪🇺
Pilot projects have started with UK’s Paysend and several European fintechs to accept UPI payments online and offline.
💰 Benefits of UPI International
1. Instant and Low-Cost Transactions
Unlike international cards that charge 2–5% per transaction, UPI International transfers are almost zero-cost and processed instantly.
2. Currency Flexibility
The system supports real-time forex conversion, meaning users know exactly how much they’re paying in INR and foreign currency.
3. Empowering Indian Tourists & NRIs
With millions of Indians traveling abroad every year, UPI International simplifies spending — no need for foreign cards or travel cash.
4. Boost to Indian Fintech Ecosystem
Global expansion means more innovation opportunities for Indian fintechs like PhonePe, Paytm, and Razorpay.
5. Digital India Goes Global
It strengthens India’s brand as a leader in digital finance, showcasing the success of the “Make in India” and “Digital India” initiatives.
🧩 Challenges in UPI’s Global Expansion
Despite its success, UPI International faces several challenges:
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Regulatory Differences:
Each country has unique financial rules that can delay integration. -
Currency Exchange Risks:
Managing real-time forex rates adds technical complexity. -
Merchant Awareness:
Many global merchants are still unaware of UPI’s benefits, slowing adoption. -
Security Compliance:
UPI must comply with international standards like GDPR and AML laws to ensure trust.
📈 UPI’s Impact on Global Remittances
India is the world’s largest recipient of remittances, with over $125 billion received in 2024 (World Bank data).
With UPI International, remittance transfers are becoming:
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Cheaper — by bypassing costly SWIFT or card networks.
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Faster — money reaches instantly instead of days.
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Simpler — just link mobile numbers between India and the other country.
This could transform the global remittance market and save billions in transfer fees every year.
💼 Major Fintechs Driving UPI’s Global Reach
Several Indian fintech giants are powering this revolution:
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PhonePe – Partnered with UAE-based networks for QR code payments.
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Google Pay – Expanding UPI functionality in Singapore and the US.
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Paytm – Working with NPCI to bring UPI acceptance to Gulf nations.
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BHIM App – NPCI’s official app, testing cross-border interoperability.
Each of these apps is optimizing user interfaces for global transactions — so that users can pay abroad as easily as they do in India.
🔮 The Future of UPI International in 2025 and Beyond
Looking ahead, UPI International is expected to expand to more than 25 countries by the end of 2025.
Key upcoming goals:
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Integrate with Visa/Mastercard global gateways for hybrid transactions.
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Enable foreign tourists in India to use their home-country UPI-linked wallets.
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Introduce UPI credit lines, allowing global micro-credit and EMI payments.
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Adopt blockchain-based transparency for high-value transactions.
The ultimate vision is to make UPI a global standard, just like Visa or Mastercard — but simpler, faster, and owned by the people.
🏁 Conclusion
India’s UPI journey — from a domestic payment tool to a global financial innovation — is a proud achievement.
As UPI International expands worldwide, it not only makes life easier for Indian users abroad but also strengthens India’s position as a fintech superpower.
The next few years will determine whether UPI becomes a truly universal payment language, connecting billions across borders.
❓ FAQ – UPI International 2025
1. What is UPI International?
UPI International is an extended version of India’s UPI system that enables users to make cross-border digital payments using their existing UPI apps.
2. Which countries accept UPI payments in 2025?
As of 2025, UPI is accepted in Singapore, UAE, France, Nepal, Bhutan, Sri Lanka, Mauritius, and is expanding to the UK and Gulf countries.
3. Can I use UPI abroad while traveling?
Yes, you can pay at international merchants that support UPI QR codes through partner banks. Just ensure your UPI app is updated and linked to an Indian bank account.
4. Are UPI International payments free?
Most transactions are either zero-cost or carry minimal charges depending on the bank and partner network.
5. Who manages UPI’s international expansion?
The expansion is handled by NPCI International Payments Limited (NIPL), a subsidiary of NPCI, in partnership with global payment systems.
6. What’s the future of UPI International?
By 2025–2026, India aims to make UPI a global payment model, expanding to 25+ countries with seamless currency conversion and merchant acceptance.
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