UPI enables cross-border QR-based merchant payments through international partnerships, although its usage remains limited by interoperability, currency conversion processes and merchant acceptance.
Unified Payments Interface (UPI), developed by the National Payments Corporation of India, now supports limited cross-border payments through partnerships facilitated by NPCI International Payments Limited. Its international functionality primarily focuses on merchant payments rather than full peer-to-peer (P2P) capabilities.
Although UPI has expanded beyond India, its overseas adoption remains dependent on bilateral agreements, local payment infrastructure and merchant onboarding within each market.
UPI enables QR payments through local interoperability
UPI’s international operations are centred on merchant payment acceptance rather than direct P2P transfers. In Singapore, UPI is integrated with PayNow, allowing users to scan QR codes at participating merchants. However, acceptance depends on merchant participation and system compatibility between networks.
In the United Arab Emirates (UAE), UPI operates through local acquiring partners such as NeoPay and Network International. Payments are accepted at selected retail outlets rather than across the entire banking ecosystem.
Transactions are debited in Indian rupees and settled in the local currency of the destination country. Foreign exchange conversion is managed within the transaction flow, adding an additional cost layer depending on the provider.
UPI functionality varies across markets
In Singapore, UPI users can make payments at participating retail and dining establishments through QR code scanning enabled by PayNow integration. This supports merchant payments and limited transfer corridors, although acceptance remains dependent on network compatibility.
In the UAE, UPI is accepted at selected retail chains, including supermarkets and shopping centres, through partnerships with payment processors. Peer-to-peer functionality remains limited and corridor-specific, restricting broader usage.
Key limitations for retail users
Despite its international expansion, UPI continues to face operational limitations. Currency conversion is handled by settlement partners, and exchange rates may differ from those offered directly by banks or card networks.
Merchant acceptance is not universal, particularly among smaller businesses, and cross-border refunds or dispute resolution processes may take longer due to multiple intermediaries. Travellers are advised to confirm acceptance before relying on UPI for overseas payments.
UPI enables interoperable merchant payments in Singapore and the UAE
Figure 1. Operational scope in Singapore and the UAE
| Area | Singapore | United Arab Emirates |
|---|---|---|
| Merchant QR payments | Yes, via PayNow linkage | Yes, via NeoPay and Network International |
| Peer-to-peer transfers | Limited corridor integration | Corridor-specific |
| Currency conversion | INR debited, SGD settled | INR debited, AED settled |
| Merchant coverage | Participating outlets only | Selected retail networks |
| Refund processing | Subject to partner timelines | Subject to partner timelines |
Source: BankQuality
Greater cross-border payment implications
UPI’s international expansion reflects a broader shift towards QR code interoperability and real-time payment connectivity between countries. Instead of relying on global card issuance, payment systems increasingly integrate through bilateral agreements and local infrastructure linkages.
For retail users, this enables faster, lower-cost and more familiar payment experiences abroad. However, interoperability remains selective and dependent on regulatory alignment, technical integration and merchant adoption within each market.
UPI is available internationally but remains in a developmental phase. Understanding where and how it operates allows users to manage travel spending and cross-border payments more effectively.