India Advocates for Eased Compliance to Expand UPI in International Payments
India is intensifying its push to globalize the Unified Payments Interface (UPI) by seeking regulatory support to ease cross-border compliance requirements. The goal is to position UPI as a credible global rival to entrenched payment systems like Visa, Mastercard, and SWIFT by simplifying international transaction frameworks and promoting broader adoption.
UPI’s Domestic Triumph and Global Ambitions
Since its launch in 2016, UPI has transformed India’s digital payments ecosystem. By 2024, it accounted for 83% of all digital transaction volume in the country—a massive leap from 34% in 2019. Its success has been driven by ease of use, real-time processing, and wide accessibility. With this momentum, India now aims to replicate its success on the global stage by making UPI a preferred mode of payment for international travelers and cross-border remittances.
Barriers to Global Rollout
Despite UPI’s robust domestic performance, its international expansion faces challenges. Current global financial regulations impose heavy compliance checks on small cross-border transactions—an area where UPI typically operates. These constraints create an uneven playing field, favoring legacy networks like Visa and Mastercard, which benefit from existing frameworks tailored to their operational models.
India’s real-time, low-cost UPI system finds itself at a disadvantage when navigating these rigid compliance structures, especially under anti-money laundering and terrorism financing norms.
Seeking a Level Playing Field
To address these challenges, India has initiated high-level discussions with global regulatory bodies to advocate for a technology-neutral compliance environment. The country has urged that digital-first platforms like UPI be given equitable consideration alongside older systems. The move seeks to ensure that innovative solutions aren’t held back by rules built for legacy models.
Officials are pressing for reform that allows secure, low-value, person-to-person payments to move seamlessly across borders without the same level of friction applied to high-risk financial activity.
Expanding Through Partnerships
Alongside diplomatic efforts, India is building partnerships with several countries to enable UPI-based transactions. Agreements with France, Singapore, and others are allowing Indian travelers to make UPI payments abroad in local currency. These early tie-ups represent proof of concept and could pave the way for UPI’s broader international acceptance, pending regulatory adjustments.
By addressing compliance bottlenecks and expanding bilateral cooperation, India aims to present UPI as a modern, scalable, and secure solution in the global payments ecosystem—challenging the dominance of legacy players and giving consumers more choices.
