Building on Dominance

Integrating with Alipay+ would enable UPI’s approximately 400 million users to more easily access instant payments when traveling abroad. This could substantially lower the costs and reduce settlement frictions often associated with cross-border transactions, keeping customers within the UPI ecosystem.

As the most dominant real-time payments platform in the region, UPI has seen significant growth, leading the Reserve Bank of India to seek ways to broaden its reach. Efforts include increasing transaction limits for higher-value purchases and linking the system with a credit card facilitated by Google Pay.

The inevitable expansion beyond India’s borders became evident when UPI partnered with PayPal World last year. This deal also included Alipay rival WeChat Pay, indicating the growing interest in international cooperation.

Another noteworthy development is the deepening relationship between India and the European Union. Following a successful pilot, the European Central Bank announced plans to connect its TARGET Instant Payment Settlement (TIPS) service with UPI. Additionally, the newly established Free Trade Agreement between the EU and India aims to create interoperability between their payment infrastructures.

Taken together, these initiatives have transformed UPI from a purely domestic digital payments system into a significant cross-border player, potentially reshaping complex and inefficient global payment processes.