The Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), has revolutionized digital payments within India and is now making waves globally. Let’s delve into the intricacies of UPI’s international capabilities, its benefits, and a step-by-step guide on making cross-border transactions.
What is UPI?
Unified Payments Interface (UPI) is a groundbreaking mobile-centric payment system that enables rapid and secure transactions. Here are some key features:
- Multiple Transaction Methods: UPI allows various transaction methods, including QR code scanning and phone number authentication.
- Direct Bank Account Linkage: UPI connects directly to users’ bank accounts, ensuring smooth transactions.
- No Additional Fees: Transactions across numerous banks incur no extra fees.
- Advanced Security Measures: Phone number linking and PIN authentication protect users’ financial activities.
Countries Accepting Indian UPI
- Bhutan: Bhutan became the first country to implement India’s UPI standards for QR code payments in July 2021.
- Malaysia: In August 2021, Malaysia collaborated with Merchantrade Asia to facilitate UPI remittances to India.
- Nepal: UPI is available in Nepal for both person-to-person (P2P) and person-to-merchant transactions since September 2021.
- Sri Lanka: Sri Lanka entered into a network-to-network agreement for UPI in July 2023 to enhance its payment infrastructure.
- United Kingdom: The UK partnered with TerraPay in August–September 2022 to provide cross-border payments using UPI.
- Europe (Netherlands, Belgium, Luxembourg, Switzerland): Starting October 2022, Worldline partnered to accept Indian payment methods across Europe.
- Oman: In October 2022, a collaboration with the Central Bank of Oman enabled seamless digital transfers through RuPay cards and the UPI platform.
- United Arab Emirates (UAE): In July 2023, an agreement integrated India’s UPI with the UAE’s Instant Payment Platform (IPP), facilitating efficient cross-border transactions.
By embracing UPI for cross-border payments, users unlock convenience, efficiency, and cost-effectiveness in their financial endeavors