India’s UPI Emergence: The rise of Cross-border Linkage

Posted On - 2 May, 2025 • By - Antony Shyam Sundar

Introduction

The Unified Payments Interface (UPI) has been a game-changer for India’s digital economy, making instant, low-cost transactions an everyday reality for millions. India has topped among the countries for its digital payment. More digital payments were made in India last year than in the US, China, and Europe all together[1]. Originally designed to streamline domestic payments, UPI has now emerged as a powerful tool for cross-border payments.

Global Expansion of UPI: Recent Developments

NPCI (National Payments Corporation of India) is a non-profit organization set up by Reserve Bank of India (RBI) which introduced UPI ensuring it as a highly secured payment mechanism. One of the most significant milestones in UPI’s international journey is Project Nexus, launched in collaboration with the Bank for International Settlements (BIS). Nexus aims to connect domestic Fast Payment Systems (FPSs) for instant cross-border retail payments. India, along with Malaysia, Philippines, Singapore and Thailand, will be among the platform’s founding members, with Indonesia joining as an observer[2]. The system is expected to go live by 2026 and could potentially impact over 1.7 billion people.

In parallel, the NPCI, through its international arm NPCI International Payments Limited (NIPL), has actively facilitated the expansion of UPI. In July 2021, Bhutan became the first country to allow UPI transactions through the BHIM (Bharat Interface for Money) App, and other countries like Nepal, Bhutan, Mauritius, Singapore, and France followed subsequently.[3] By 2025, NIPL plans to onboard at least four to six additional countries, including popular travel destinations for Indians such as the UAE, Qatar, and Thailand. 

Strategic Collaborations and Partnerships

In a strategic move, NIPL has signed agreements with central banks in Peru and Namibia to help them develop local payment systems modeled on UPI, aiming to replicate its success in their domestic markets[4]. Moreover, India is in discussions with over 20 countries in Africa and Latin America, with Rwanda being one of the key focus areas[5]. These developments reflect India’s commitment to promoting digital public infrastructure (DPI) globally and positioning UPI as a benchmark for low-cost, secure, and inclusive digital payments.

Conclusion

The cross-border expansion of UPI reflects India’s hands-on role in global fintech leadership. Through innovative projects like Project Nexus, bilateral partnerships, and regulatory advocacy, UPI is not only empowering Indian users abroad but also helping other countries advance into the digital economy. As more nations explore collaborations with NPCI and adopt UPI-inspired models, India’s vision of digital payment ecosystems is gradually becoming a global reality.

[1] Asian News International, India’s Digital Transactions More Than That Of US, China, Europe Combined: Trade Official, NDTVPROFIT, https://www.ndtvprofit.com/business/indias-digital-transactions-more-than-that-of-us-china-europe-combined-trade-official-3860293 ( last visited April 23, 2025)

[2] Bank for Int’l Settlements, Project Nexus: Connecting Fast Payment Systems for Cross-Border Payments (Nov. 5, 2024), https://www.bis.org/about/bisih/topics/fmis/nexus.htm  (Last visited April 23, 2025)

[3] Business Standard, RBI, ASEAN Countries to Create Platform for Retail Cross-Border Payments, BUS. STANDARD (July 1, 2024), https://www.business-standard.com/finance/news/rbi-asean-countries-to-create-platform-for-retail-cross-border-payments-124070100585_1.html (Last visited April 23, 2025)

[4] ABP News Bureau, NPCI Arm Plans to Expand UPI to 4-6 New Countries in 2025, ABP NEWS (Mar. 13, 2024), https://news.abplive.com/business/npci-international-arm-plans-to-expand-upi-to-4-6-new-countries-in-2025-1738395

[5] Munsif Vengattil, India Eyes Africa, Latin America for UPI-Style Payments Push, REUTERS (Sept. 24, 2023), https://www.reuters.com/technology/india-payments-authority-eyes-africa-s-america-digital-payment-push-official-2024-09-24/ (Last visited April 23, 2025)