PhonePe launches support for cross-border UPI payments in select countries: report

PhonePe, an Indian digital payments and fintech company, has launched support for cross-border UPI payments, under UPI International. App users can now use their Indian bank accounts to pay at outlets in the United Arab Emirates, Singapore, Mauritius, Nepal and Bhutan, The Bhutan Live reported.

Previously, Indian users had to use foreign currency in cash or through a forex card.

With this, the digital payment platform became the first in its class to integrate UPI International.

According to PhonePe, users could now make foreign currency payments directly from their bank accounts, similar to international debit cards.

UPI International, introduced by the cross-border branch of the National Payments Corporation of India (NPCI International Payments Limited), facilitates UPI transactions for the Indian diaspora abroad.

NPCI plans to roll out UPI International to more countries in 2023.

Rahul Chari, CTO and co-founder of PhonePe, quoted by The Bhutan Live, said, “UPI International is the first major step in enabling the rest of the world to experience UPI as well. I am sure this launch will prove to be a game-changer and completely transform the way Indians traveling abroad pay at overseas outlets.”

According to NPCI figures from December 2022, PhonePe processed 367.42 crore transactions worth Rs. $6.39 million. The figures represented 47% of all UPI transactions and 50% of total transaction value in December 2022, according to The Bhutan Live.

The recent developments come amid growing international interest in the government payment network. According to Union Electronics and IT Minister Ashwini Vaishnaw, India is already in talks with about 30 countries for UPI.

Given the popularity of the UPI payment system, the Reserve Bank of India recently said that it has proposed to allow all travelers entering India to use UPI for their merchant payments while in the country.

RBI Governor Shaktikanta Das made the announcement while deliberating on the outcome of the just-held three-day monetary policy committee meeting.

“To begin, this facility will be extended to travelers from G-20 countries arriving at select international airports,” Das said.

The UPI payment system has become extremely popular for digital retail payments in India, and its adoption is growing at a rapid pace.