Imagine this. You’re in Bhutan, strolling down the cobblestone streets, enjoying the city’s finest delicacies. You decide to pick up a souvenir for your loved ones back home, but when you reach for your wallet, you realise you’re out of Bhutanese Ngultrum (the currency of Bhutan). You’d probably use your credit/card to withdraw cash. Now, wouldn’t it be much easier if you could simply use UPI, just like you do in India, to make payments? Now you can.
NPCI International Payments Limited (NIPL), a subsidiary of the National Payments Corporation of India (NPCI), is building a network for UPI acceptance that will allow Indian travellers to make instant money transfers using online money transfer apps in select foreign countries. In February last year, the Ministry of External Affairs announced that Indians can now use UPI for money transfers in Sri Lanka and Mauritius.
Keep reading to understand how cross-border payments work through UPI, the benefits they offer, and how you can make instant money transfers while travelling abroad.
How Does Instant Money Transfer Work for Global Payments?
UPI Global Acceptance(International Merchant Payments), launched by NPCI, allows you to make QR code-based payments at select international merchant locations directly from your Indian bank account using UPI-enabled apps. This feature makes cross-border transactions as simple as domestic ones.
The system operates through partnerships with local financial institutions to ensure compliance with international banking standards. For instance, in Singapore, UPI works with NETS (Network for Electronic Transfers) to enable seamless transactions.
Currently, UPI payments are accepted in seven countries-
- Bhutan
- Mauritius
- Nepal
- Singapore
- Sri Lanka
- UAE
- France
NPCI is working to add more countries like Qatar and Thailand to this list in the near future.
To make payments abroad, you can use online money transfer apps like BHIM or Indus Pay, without the need for foreign currency. All you need to do is activate the UPI Global/UPI International feature in your app.
Benefits of Cross-Border UPI Money Transfers
Cross-border UPI payments come with numerous advantages- Lower Cost
Traditional international transfers often involve high fees. UPI reduces these costs, making it a more affordable option for users.
Quick and Efficient
Bank transfers can take several days to process. By contrast, UPI ensures instant payments, making transactions faster and more convenient.
User-Friendly
UPI is simple to use. With the mobile app and a QR code, you can make payments instantly without worrying about currency conversion.
Security
UPI uses advanced encryption and two-factor authentication for domestic and international payments, ensuring the security of your transactions.
Convenience
If you travel frequently you can understand the inconvenience of carrying foreign currency and the inherent risk of theft. With UPI Global, you don’t need to carry as much cash. You can make payments using UPI-powered apps at supported merchants in select countries.
How to Make Instant Money Transfers Abroad Using UPI
Before making a payment abroad, you need to activate the UPI Global/UPI International service for your bank account via your online money transfer app. Once this setup is complete, follow these steps-
- Look for the BHIM UPI or network partner QR code sticker/standee at the merchant’s location. Confirm with the merchant whether they accept UPI-based payments.
- Use your UPI-powered application to scan the displayed QR code.
- Carefully verify the payment amount in both Indian and foreign currencies. Check for applicable exchange rates or transaction fees before proceeding.
- Enter your UPI PIN to approve the payment.
Upon successful completion, you and the merchant will receive payment confirmation notifications.
The Bottom Line
As UPI expands globally, it’s transforming how we handle international payments. With its affordability, speed, and simplicity, UPI is making cross-border transactions accessible to everyone while boosting India’s digital economy.
Whether you’re shopping for souvenirs, or managing overseas payments, UPI offers a secure, cost-effective, and hassle-free experience. With its expanding presence worldwide, the future of UPI looks promising, paving the way for a more connected and seamless global payment system.
