Indian Prime Minister Narendra Modi has called for expanding the country’s Unified Payments Interface (UPI) internationally by integrating it with payment networks worldwide. Speaking at a fintech conference in Mumbai, Modi framed the expansion as a key milestone in India's digital payments growth.
What Is UPI?
Operated by the National Payments Corporation of India (NPCI), UPI is the world’s largest retail fast-payment system by transaction volume.
- Massive Volume: In August alone, it processed 24.51 billion transactions worth ₹29.82 trillion ($314.21 billion).
- Global Footprint: UPI is currently operational in 11 countries, including Singapore, the UAE, France, and Nepal.
- Instant Transfers: In 2023, it linked with Singapore’s PayNow system, allowing instant cross-border transfers using just a mobile number or Virtual Payment Address.
Expansion Goals
Modi highlighted connecting UPI to other international payment rails as the essential next step:
- Focus Areas: Prioritizing regions with large Indian expat communities and strong trade connections.
- Lower Remittance Costs: Aims to reduce fees and friction for millions sending money home.
- Seamless Travel: Helps Indian travellers make payments abroad in Indian rupees.
Regulatory Updates
The international push comes alongside recent Indian legislative changes that pave the way to reintroduce merchant fees on UPI transactions.
