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Going Global: Does UPI’s 11-Nation Rollout Offer Better Exchange Rates Than Cash & Forex Cards?

While UPI's international expansion across 11 countries offers unprecedented convenience for Indian travellers, a loaded forex card remains the most cost-effective option for large expenses due to locked-in conversion rates and lower forex markups.

Nilakshi Barman | | 1 min read

Going Global: Does UPI’s 11-Nation Rollout Offer Better Exchange Rates Than Cash & Forex Cards?
Image courtesy: NDTV

In Brief:

  1. UPI is now operational across 11 countries—including Singapore, UAE, France, Nepal, and Sri Lanka—allowing direct INR debits at participating overseas merchants.
  2. Forex cards generally remain cheaper for planned spending as they lock in exchange rates upfront and charge lower markups (0–1%) compared to UPI’s real-time bank conversion markups (1–3.5%).
  3. Physical cash and forex cards are still essential since UPI acceptance abroad remains limited to specific tourist hubs and select merchant QR codes.

Unified Payments Interface (UPI) has officially expanded its global footprint to 11 countries—including key tourist destinations like the UAE, Singapore, France, and Sri Lanka—allowing Indian tourists to scan QR codes and pay directly from their bank accounts. However, financial analysts note that convenience does not always equate to lower costs.

While UPI apps charge zero platform fees, individual Indian banks apply a foreign exchange markup of 1% to 3.5% embedded into the real-time conversion rate at the moment of payment.

In contrast, multi-currency forex cards allow travellers to lock in exchange rates prior to departure with lower conversion spreads, protecting them from market fluctuations and high hidden markups. While UPI serves as an excellent, hassle-free option for small daily expenses like food and taxis in supported hubs, financial experts advise keeping a forex card or local cash as a primary budget tool due to varying merchant coverage and conversion costs.

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