India Pushes UPI Global Reach, Eyes East Asia Expansion
Overview
India is aggressively expanding its Unified Payments Interface (UPI) to new international markets, focusing heavily on East Asia. This strategic push aims to solidify India's position in digital transactions and enhance convenience for Indian travelers abroad, building on UPI's success and its linkage to financial inclusion initiatives.
UPI Aims for Wider Global Footprint
New Delhi - India is actively working to broaden the international acceptance of its indigenous digital payment system, the Unified Payment Interface (UPI), with a strategic emphasis on East Asian nations. Financial Services Secretary M Nagaraju confirmed the government's push on Tuesday, aiming to enhance cross-border transactions for Indian citizens and bolster digital payment infrastructure.
UPI currently facilitates payments in eight countries, including Bhutan, Singapore, Qatar, Mauritius, Nepal, the UAE, Sri Lanka, and France. This expansion allows Indian tourists and expatriates to seamlessly use the UPI network for their daily transactions abroad, reducing reliance on traditional payment methods.
Digital Transaction Growth Fueled by UPI
Speaking at the Global Inclusive Finance India Summit, Nagaraju highlighted UPI's transformative impact on India's digital economy. He stated that digital transactions now account for approximately 50% of India's total financial transactions, a significant portion attributable to UPI's widespread adoption.
The secretary noted that UPI transactions crossed more than 21 billion in December 2025. This milestone, he suggested, is closely linked to the substantial growth in accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme and the subsequent increase in average balances held within these accounts, underscoring the synergy between financial inclusion and digital payment innovation.
Scaling Micro-Enterprises Remains a Focus
Beyond payment systems, Nagaraju also addressed the critical need for supporting small micro-units in graduating to medium and large enterprises. He emphasized that this transition is crucial for India's economic development but requires substantial support, including improved market access and productivity gains driven by technological advancements and hardware enhancements. The National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA), operates the UPI system, facilitating real-time retail payments.
