Cross-Border UPI transactions have recorded an explosive 20x growth in FY25, reaching 7.55 lakh transactions worth ₹258 crore, according to the National Payments Corporation of India (NPCI). This growth shows the rising global acceptance of India’s Unified Payments Interface (UPI) as a fast, secure, and affordable mode of payment across countries.
What are Cross-Border UPI Transactions?
Cross-Border UPI transactions allow Indian users to make payments overseas directly through their UPI apps, without relying on credit or debit cards. The system enables seamless merchant payments, money transfers, and QR-based transactions across partner countries.
UPI has already become a household name in India, crossing 14 billion monthly transactions domestically. Now, its expansion into international markets is driving adoption at a rapid pace.
20x Growth in FY25: Key Highlights
- 7.55 Lakh Transactions – up from just 37,000 in FY24.
- ₹258 Crore in Value – compared to only ₹12 crore last year.
- Major Contribution from UAE & Singapore – key early adopters of UPI cross-border payments.
- Strong Government Push – partnerships under India’s G20 presidency boosted global integration.
Why Are Cross-Border UPI Transactions Rising?
- Low Transaction Cost – cheaper than using international credit cards.
- Ease of Use – users can pay through their familiar UPI apps like PhonePe, Paytm, Google Pay, and BHIM.
- Wider Acceptance – UAE, Singapore, Nepal, Bhutan, Sri Lanka, and France have already partnered with India for UPI integration.
- Remittance Benefits – Non-Resident Indians (NRIs) can send money home faster and at lower charges.
Global Expansion of UPI
NPCI International Payments Limited (NIPL), the global arm of NPCI, is leading efforts to integrate UPI with international networks. Partnerships with countries like UAE (Mashreq Bank), Singapore (PayNow), Nepal (Fonepay), and France (Lyra) are already live. Talks are ongoing with countries in Europe, Africa, and the US to widen adoption.
This aligns with India’s vision to make UPI a “global digital public good.”
Economic Impact
- Tourism Boost – Indian travelers can pay abroad using UPI without forex hassles.
- Financial Inclusion – small merchants overseas benefit from accepting UPI without costly POS systems.
- Remittance Growth – India already leads the world in inward remittances ($125 billion in 2023). UPI will make transfers even more efficient.
Challenges Ahead
- Regulatory Approvals – each country has its own compliance rules.
- Interoperability Issues – ensuring smooth integration with local banking systems.
- Security Concerns – safeguarding international payments from cyber threats.
Conclusion
The 20x growth of Cross-Border UPI transactions in FY25 marks a turning point in India’s fintech story. From a domestic innovation to a global payment solution, UPI is now transforming how Indians pay abroad and how NRIs send money home. With more partnerships in the pipeline, Cross-Border UPI is set to play a key role in shaping the future of global digital payments.
