India's UPI Eyes Global Leap: East Asia Targeted for Payment Expansion
Overview
India is aggressively pursuing international expansion for its Unified Payment Interface (UPI) digital payment system, with a strategic focus on East Asian markets. Financial Services Secretary M. Nagaraju confirmed plans to onboard a larger number of countries beyond the current eight. This move aims to facilitate overseas transactions for Indian tourists and bolster India's digital payment infrastructure on a global scale. The success is partly attributed to the PM Jan Dhan Yojana.
UPI Pushes for Global Footprint
India is actively working to broaden the international acceptance of its Unified Payment Interface (UPI), its flagship digital payments system. The government is particularly focusing on expanding UPI's presence in East Asian nations, according to Financial Services Secretary M. Nagaraju.
Currently, UPI is operational in eight countries: Bhutan, Singapore, Qatar, Mauritius, Nepal, the United Arab Emirates, Sri Lanka, and France. This existing network allows Indian travelers to seamlessly make payments abroad using the familiar UPI interface.
Strategic Expansion and Digital Growth
Speaking at the Global Inclusive Finance India Summit, Nagaraju highlighted UPI's significant contribution to India's digital transaction volume, estimating it at 50 percent. "We are trying to expand. To a large number of countries, especially we are focussing in East Asia now," he stated, signaling a key strategic direction.
He also noted that UPI transactions are projected to surpass 21 billion by December 2025. This digital success story is closely linked to the manifold growth in Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts and the increasing average balances held within them, demonstrating a strong foundational support for digital finance.
The National Payments Corporation of India (NPCI), the entity behind UPI, operates as an umbrella organization for retail payments and settlement systems, under the guidance of the Reserve Bank of India and the Indian Banks' Association.
Broader Economic Aspirations
Beyond payment infrastructure, Nagaraju also emphasized the critical need for small micro-units to scale up into medium enterprises. He posited that this transition, crucial for economic growth, requires substantial support including market access and productivity gains through technological advancements.
