Travelling Abroad? Here’s Where Indian UPI Payments Work—and Why It’s Cheaper Than Using Cards
A practical guide to UPI's growing international footprint, live country list, and the real financial advantages for Indian travellers
UPI Goes Global: Why Indian Users and Travellers Should Pay Attention
Unified Payment Interface (UPI), India’s widely used instant payment system, is no longer just a domestic tool. Rolled out internationally through National Payments Corporation of India (NPCI) and its subsidiary NPCI International Payments Ltd (NIPL), UPI now enables Indian tourists, students, and business travellers to make cash-free payments in 13 foreign countries using their regular UPI apps.
What does this mean for Indian users headed abroad? Lower transaction fees, no hassle of credit card approvals or international wallet setups, and a chance to track expenses in real time—all from your usual mobile banking apps.
What Is UPI International and How Does It Work?
UPI is an instant real-time payment system developed by NPCI, connecting multiple bank accounts through a single mobile app. For international acceptance, NIPL partners with foreign banks, payment processors, and merchants to enable Point-of-Sale (P2M) and peer-to-peer (P2P) UPI transactions abroad. Indian users can scan QR codes or select UPI at partnered merchants overseas, pay directly from their Indian bank accounts, and get confirmation within seconds.
Where Is UPI Acceptable Abroad? Complete Country List and Launch Timeline
Below is the country-wise status of UPI acceptance for Indian users (as of August 2026):
| Country | Service Type | Launch Date |
|---|---|---|
| Bhutan | P2M | July 2021 |
| Singapore | P2M, P2P | Aug 2021, Feb 2023 |
| UAE | P2M | April 2022 |
| France | P2M | February 2024 |
| Mauritius | P2M | February 2024 |
| Sri Lanka | P2M | February 2024 |
| Nepal | P2M, P2P | March 2024, June 2026 |
| Qatar | P2M | September 2025 |
| Greece | P2P | May 2026 |
| Cambodia | P2M | June 2026 |
| Uzbekistan | P2M | August 2026 |
Additional: Bhutanese nationals have been enabled to use their apps for UPI payments in India since September 2026.
Notes:
- P2M (Person to Merchant) means Indian users can pay businesses/retailers via UPI QR or other enabled methods.
- P2P (Person to Person) means Indian users can transfer money to individuals abroad through the UPI network.
Why UPI Can Be Cheaper Than Cards for International Transactions
Paying with Indian credit or debit cards overseas often means steep forex markup and high merchant discount rates (MDR)—the fees paid by merchants, but often indirectly passed to customers via higher prices or surcharges. Here’s how UPI stacks up:
- UPI foreign MDR (from 15 Oct): 0.4% of the transaction amount on transactions above ₹2,000, capped at ₹300 per transaction.
- Credit card MDRs: Typically range from 1.5%–2.5% for international payments.
- Debit card MDR cap: 0.9%.
- Comparison: UPI’s MDR is lower than most cards and digital wallets, providing a more cost-efficient option, especially for frequent or high-value purchases.
How to Use UPI Abroad: The Real-World Steps
- Confirm that your destination country and merchants support UPI (see table above).
- Update your UPI-enabled mobile app to the latest version.
- Use the app to scan the merchant’s UPI QR code or select UPI as the payment method.
- Enter the amount and authenticate the transaction as usual—no international wallet or additional setup needed.
- Track your spending instantly: all payments and exchange rates reflect in your Indian bank account.
Key Considerations Before You Rely on UPI Abroad
- Merchant Participation Matters: Not every merchant in a partner country will accept UPI right away. Look for UPI signage.
- P2P/P2M Differences: Some countries offer only merchant (P2M) payments, not peer-to-peer transfers.
- MDR Changes: Starting 15 October, 0.4% MDR applies above ₹2,000 (still much lower than credit card rates).
- Forex Conversion: The INR is converted to local currency at the prevailing bank/partner rates.
- Expense Tracking: UPI offers real-time spend notifications (helpful for budgeting abroad).
Who Stands to Benefit Most?
- Indian tourists and families travelling abroad
- Indian students living or studying overseas
- Indian businesspeople on international trips
- Merchants in participating countries (can attract Indian tourists with seamless payment)
Looking Ahead
With the continual expansion of the UPI network, travelling Indians can expect broader choices and fewer surprises in their payment experiences abroad. For both short trips and long stays, UPI’s internationalisation is set to rival global card networks at a fraction of the usual cost.
Frequently asked questions
Which foreign countries currently accept UPI payments from Indian users?
As of August 2026, UPI is accepted in 13 countries, including Bhutan, Singapore, UAE, France, Mauritius, Sri Lanka, Nepal, Qatar, Greece, Cambodia, and Uzbekistan, for various types of payments.
How does using UPI abroad differ from using a credit or debit card?
UPI enables direct debits from your Indian bank account at a lower MDR than most cards, offers instant notifications, and removes the need for international card approvals or wallet setup.
What charges apply for international UPI transactions?
Transactions above ₹2,000 will attract a 0.4% MDR, capped at ₹300 per transaction. This is typically less than international credit or debit card fees.
Can Indian users send money to friends or family in these countries using UPI?
Peer-to-peer UPI transfers (P2P) are available in select countries, such as Singapore, Greece, and Nepal. Most other countries currently support only person-to-merchant (P2M) payments.
What should an Indian traveller check before relying on UPI at a foreign destination?
Check whether UPI is available in your destination country, confirm that specific merchants accept UPI, and ensure your UPI app is updated before travelling.