UPI has firmly established itself as a remarkably seamless payment system, and it is here to stay. Since its inception in 2016, it has made significant strides to become the foundation of monetary transactions and payments in the Indian landscape. While UPI new apps have become the most sought-after payment mechanism domestically, does this success indicate global adoption?
The National Payments Corporation of India (NPCI), the creator of UPI, is now working towards taking it global. It is in talks with foreign countries to set up systems like UPI or integrate it with pre-existing payment systems like Singapore’s PayNow. In this article, we shall discuss the expansion of UPI internationally.
What would Borderless UPI Look Like?
The RBI already aims to internationalise the Rupee. With tech-driven initiatives like UPI, it will be possible to make transactions globally without currency exchange or international cards. UPI new apps going global would be exceptionally beneficial for a high remittance-receiving nation like India, with a large diaspora living abroad.
- When visiting a foreign country, you wouldn’t need an international credit card or foreign currency, you could simply scan a QR code and pay with your UPI app linked to your Indian bank account.
- Once integrated with international payment systems, UPI can be used to receive or send money abroad to any international number linked to that system, eliminating expensive wire transfers.
- Small and medium businesses would easily expand their operations internationally with streamlined cross-border transactions and domestically with innovations like UPI Lite payment apps.
- With trade and remittances becoming rupee-based, reliance on foreign currency will be reduced, aiding India’s overall economic development.
Current Progress in the Globalisation of UPI
NPCI International Payments Limited (NIPL), a wholly owned subsidiary of NPCI, is at the forefront of promoting UPI adoption worldwide. Some noteworthy steps have already been taken in this direction.
- BHIM UPI QR payments have already come into use in countries like Singapore, the UAE, Mauritius, Nepal, and Bhutan. This makes it easy for Indian travellers to pay for retail purchases at foreign mercantile establishments.
- PayNow, Singapore’s rapid payment system, is now integrated with UPI. For instant cross-border fund transfers between the two countries, you need only a mobile number, UPI ID, or a Virtual Payment Address (VPA).
- Non-resident Indians with international numbers and accounts in select Indian banks can also use some UPI new apps.
- Foreigners visiting India, having a valid visa and passport, can use the UPI One World Wallet, a pre-paid wallet, to make payments.
- The NPCI is entering into agreements with Peru and Namibia to initiate UPI-modeled systems by 2026–2027.
The Way Forward for a Cross-border UPI
Substantial work has been done to forge a path towards a global UPI. With respect to its worldwide adoption, the future holds the following.
- Engaging in International Talks: India would need to build bilateral partnerships with foreign banks and payment systems and secure regulatory approvals from participating nations.
- Facilitating Global Trade through UPI: Increasingly, countries in emerging markets will implement UPI-like systems to enhance digital payment accessibility. India should encourage merchant integration while incorporating features such as UPI credit for global acceptance.
- Simplifying Money Transfer: UPI’s instant and affordable remittance features will ease the process for millions of Indians abroad, making it simpler for them to send money back home.
- Less Reliance on Third-party Currencies: Thanks to regulatory support, we could soon see the Indian Rupee used more widely in international trade, reducing dependence on conventional reserve currencies.
Conclusion
A globalised UPI would benefit India, its genesis, and the nations that adopt it. It would facilitate multi-currency support, integrated forex rates, QR-code-based borderless transactions and real-time exchange rate updates.
Bajaj Finserv is actively engaging in the UPI expansion movement. It is making transactions quick and seamless with its UPI new app, Bajaj Pay. Facilitating the wider acceptance of UPI in the nation is the first step towards making it a global digital payment powerhouse.