International UPI Payments: How They Work and Where They’re Accepted

What Are International UPI Payments?

International UPI payments allow Indian users to pay selected overseas merchants through supported UPI apps. Instead of using a forex card, credit card, or cash, users can scan a supported QR code abroad and approve the payment with their UPI PIN. The payment starts in Indian Rupees. The amount is then converted into the local currency based on the payment network, bank, and applicable forex rate. NPCI says UPI Global Acceptance lets users scan a QR code with a UPI-powered app and make payments at international merchants. This feature works only in countries and merchant locations where UPI International is enabled. The user’s bank and UPI app must also support international UPI payments.

How Does the UPI International Payments System Work?

UPI international payments work through a link between India’s UPI network and payment networks in supported countries. NPCI says UPI Global Acceptance allows users to make QR-based payments at selected international merchants through UPI-powered apps. Here is how the payment flow works:

1. The customer scans a UPI-enabled QR code at an overseas merchant.
2. The UPI app shows the payable amount, usually with the local currency and INR value.
3. The customer approves the payment using their UPI PIN. The amount is deducted from the customer’s Indian bank account in INR.
4. The payment network handles currency conversion and routes the transaction to the overseas merchant.
5. The merchant receives the payment in the supported local currency.

This process works only where UPI acceptance has be enabled through NPCI International and local payment partners. The customer’s UPI app and bank must also support international payments.

Key Components of UPI Payments

1. UPI App

The UPI app is where the user starts the payment. Apps like BHIM, PhonePe, Paytm, and Google Pay allow users to scan a QR code, check the amount, and approve the transaction with a UPI PIN.

2. Linked Indian Bank Account

International UPI payments are deducted from the user’s linked Indian bank account. The user does not need to load money into a separate wallet.

3. UPI PIN

The UPI PIN is used to approve the payment. Without PIN confirmation, the transaction cannot be completed.

4. QR Code

Most international UPI payments happen through QR codes at supported merchant locations. The user scans the QR code and sees the payable amount before confirming.

5. Currency Conversion

The payment starts in Indian Rupees and is converted into the local currency based on the bank, payment network, and applicable forex rate.

6. Merchant Settlement

After the user approves the payment, the merchant receives the amount through the local payment network or acquiring partner in that country.

How to Make an International Transaction Using UPI

UPI International allows Indian users to make payments outside India in countries where UPI acceptance has been officially enabled. Instead of using a card or withdrawing foreign currency, customers can simply scan a supported QR code and complete the payment using their existing UPI app. Here is how the process works:

1. Visit a merchant or payment point in a country where UPI International is supported.
2. Choose the UPI option or scan the UPI-compatible QR code displayed at the store.
3. Open your UPI app, such as BHIM, PhonePe, or Paytm, and scan the QR code.
4. The amount will appear in the local currency, along with the INR equivalent for your reference.
5. Approve the payment using your UPI PIN.
6. The amount is deducted in Indian Rupees and paid to the merchant in their local currency.
7. You receive instant confirmation in your UPI app.

This process works only in partner countries and only if your issuing bank has enabled UPI International. It offers a fast, secure, and convenient way for Indian users to make cross-border payments.

Apps for International UPI Payment

Only selected UPI apps currently support international transactions in countries where UPI International has been enabled by NPCI. These apps allow Indian users to scan supported QR codes, approve cross-border payments and complete the transaction in Indian Rupees, while the backend handles currency conversion securely. The verified UPI apps that support international payments include:

BHIM UPI

The official app from NPCI, BHIM is the primary platform for UPI International. It is the most widely supported app across all active UPI International corridors.

PhonePe

PhonePe supports UPI International in enabled regions such as Singapore, UAE, Mauritius, and Nepal. Users can scan supported QR codes and complete the transaction through their existing UPI account.

Paytm

Paytm allows users to make UPI-based international payments in supported countries. The app displays the amount in local currency and its INR equivalent before confirming the payment.

Note: Support varies by bank. A user’s bank must activate UPI International on their account for these apps to work outside India.

Benefits of Using International UPI Transfers

International UPI transfers offer a familiar and seamless way for Indian users to make payments while travelling or transacting abroad. Instead of relying on cards, currency exchange or bank transfers, users can simply scan a QR code with their UPI app and complete the payment instantly. This makes cross-border spending more convenient and cost-effective. Here are the key benefits:

Fast and Real-Time Payments

UPI international payments are processed instantly. Users do not need to wait for authorisation, OTPs, or complicated verifications, which speeds up checkout at stores, restaurant,s and tourist locations.

Lower Costs Compared to Cards

Traditional international card transactions often involve multiple fees and high forex markups. UPI international payments generally offer more transparent and competitive conversion rates through the bank or payment network.

No Need to Carry Local Currency

Travellers can pay directly in local currency without exchanging cash. This reduces the need to withdraw foreign money or carry multiple cards while travelling.

Simple and Familiar Experience

The process is exactly the same as using UPI in India. Users simply scan a QR code, check the amount and approve the payment using their existing UPI PIN.

Higher Security

UPI international transactions use the same security standards as domestic UPI payments. Sensitive card details or bank information are never shared with merchants.

Instant Confirmation

Once a payment is approved, both the user and merchant receive real-time confirmation, making it suitable for everyday purchases as well as ticketing and travel services. As more countries integrate UPI acceptance, international travellers benefit from quicker payments, fewer fees, and a universally familiar experience.

List of Countries Where UPI Payments Are Accepted

As per NPCI International’s global presence page, UPI acceptance is currently available in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, the UAE, and Qatar. NIPL also marks France with an asterisk, so you can mention that acceptance may be available at selected merchant locations only.

Country	UPI acceptance status	What Indian users can do
Bhutan	Available	Pay at supported merchant locations using UPI-enabled apps
France	Available at selected locations	Use UPI at supported merchants, especially tourist-facing locations
Mauritius	Available	Make UPI payments at enabled merchants
Nepal	Available	Pay through supported UPI QR codes
Singapore	Available	Use UPI for supported merchant payments and selected linked payment flows
Sri Lanka	Available	Pay at enabled merchants using UPI-supported QR codes
UAE	Available	Make UPI payments at selected merchant locations
Qatar	Available	Use UPI at supported merchant locations

Note: UPI acceptance may not be available at every merchant in these countries. The user’s UPI app, linked bank account, and the merchant’s payment setup must support UPI International for the transaction to work.

Charges for International UPI Payments

International UPI payments may include currency conversion charges, bank charges, and forex markup. The exact cost depends on the user’s bank, UPI app, country, merchant setup, and exchange rate used at the time of payment. Domestic UPI payments are usually free for users, but international UPI payments work differently because the transaction involves currency conversion. PhonePe’s UPI terms mention that the payable amount is shown in Indian Rupees based on the forex rate and markup for UPI international payments.

Charge type	What it means
Currency conversion	The payment starts in INR and gets converted into the merchant’s local currency
Forex markup	A small markup may be added to the exchange rate by the bank or payment network
Bank charges	Some banks may charge for enabling or processing international UPI payments
App charges	UPI apps may or may not charge separately, depending on their policy
Merchant-side charges	The merchant or payment provider may bear separate acceptance or settlement charges

Before paying, users should check the INR amount shown in the UPI app. This amount usually includes the exchange rate and applicable markup. The final charge may vary from one bank or app to another, so it is better to confirm the fee structure before using UPI abroad.

How to Receive International UPI Payments

Receiving international UPI payments is now simpler for businesses and individuals operating outside India. Instead of setting up an entity in India or maintaining a local bank account, you can use an RBI-regulated payment platform that handles the entire process on your behalf. These platforms collect money in Indian Rupees, convert it into your preferred currency and settle it into your international bank account securely. Here is how the process works: 1. Integrate with an RBI-approved payment partner You need to onboard with a licensed payment aggregator or cross-border payment platform that supports UPI international collections. These partners include Razorpay Import Flow, Paytm International Gateway, Cashfree Global Collections and others. 2. Share UPI as a payment option with customers Once the integration is complete, your Indian customers will see UPI as a payment method at checkout. They can pay using BHIM, PhonePe, or Paytm. 3. Customers pay in INR through their UPI app Your customer enters their UPI ID or scans a QR code. The payment is processed instantly in Indian Rupees. 4. The payment partner converts the amount into foreign currency After receiving the INR amount, the payment platform converts it to your chosen currency such as USD, EUR or GBP using authorised dealer banks. 5. Settlement is made to your international account The converted amount is transferred to your overseas bank account within the settlement timeline provided by your payment partner, usually within one to three working days. 6. You receive compliance documents automatically You get a Foreign Inward Remittance Advice (FIRA) or equivalent documentation for each payment along with purpose codes, which ensures smooth accounting and regulatory compliance. This model allows businesses, freelancers, and global merchants to receive UPI payments from India without maintaining local infrastructure. It is a fast, compliant, and cost-effective way to unlock the growing Indian customer base.

Can You Accept UPI Payments Without an Indian Entity?

Traditionally, foreign businesses that wanted to collect payments from Indian customers had to establish a local presence. This meant setting up an Indian private limited company, opening a domestic bank account, registering under GST, and handling tax filings. For most international businesses, this created unnecessary cost and legal complexity, especially if the goal was only to accept occasional payments from Indian users. However, that barrier no longer exists. With the rise of regulated payment platforms designed for cross-border use, it is now possible to accept UPI payments without opening a company in India. Solutions like Razorpay’s Import Flow and Paytm’s international checkout allow global businesses to tap into UPI without local incorporation. These platforms work as licensed intermediaries. They hold the required approvals from the Reserve Bank of India to collect payments in Indian rupees and convert them into foreign currency before transferring the settlement to your global bank account. This eliminates the need for a local Indian bank, physical office, or compliance with domestic tax obligations. The customer pays you through UPI payment apps like PhonePe or Google Pay. You receive the funds in your preferred currency, such as USD or EUR. The entire transaction remains compliant with India’s foreign exchange laws, while your business avoids the hassle of setting up a legal structure in the country. This model has made UPI for international payments far more accessible. Today, global SaaS platforms, freelancers, and exporters use it to accept Indian customer payments smoothly, without dealing with local incorporation or regulatory delays.

Compliance Checklist: Legal and Documentation Requirements

To accept UPI payment from Indian customers as a foreign business, you must stay compliant with India’s financial regulations. Here is a detailed checklist of what you need to ensure:

• You must collect payments through a licensed Indian payment aggregator that is authorized by the Reserve Bank of India (RBI).
• Each UPI payment must be tagged with the correct purpose code. This code defines the nature of the payment (e.g., export of services, software development, or consulting).
• After each transaction, you must request or automatically receive a Foreign Inward Remittance Advice (FIRA). This document confirms the receipt of foreign exchange and is needed for accounting and audits.
• The UPI payment gateway integration must support compliant conversion of INR to your preferred currency through an Authorized Dealer Category-I bank.
• GST requirements depend on the type of service (e.g., OIDAR). Many foreign businesses without physical presence are exempt, but classification must be verified.. However, you must ensure the payment platform you use is handling tax classification correctly.
• The payment gateway should offer automatic FIRA generation and purpose code assignment to avoid manual intervention and reduce the risk of errors.
• Maintain a digital or physical record of all UPI international payments for at least five years, as required by FEMA (Foreign Exchange Management Act) compliance.
• Refunds, if processed, should be initiated through the same channel using the original UPI reference ID to ensure transparency and traceability.
• Reconciliation reports should be downloaded regularly from your payment dashboard to keep internal accounting aligned with settlements.
• Before onboarding with a provider, verify their RBI license status and ensure they are allowed to facilitate UPI payment apps for cross-border collections.

Read more: How to Easily Create UPI Payment Links and Streamline Your Collections

Currency Settlement and Forex Fees: What to Expect

When accepting UPI payment from Indian customers, the funds you collect are in Indian Rupees. Since your business operates outside India, the collected INR must be converted into your preferred foreign currency like USD, EUR, or GBP. This currency conversion and settlement process is managed by the payment gateway you use, and understanding its structure is important to avoid unexpected deductions or delays. Settlement timelines vary by provider. Razorpay and Paytm typically settle the converted foreign currency into your international account within two to three business days. Cashfree and EnKash also offer similar timelines, though some platforms like Skydo provide next-day settlements. Fast settlement ensures your cash flow remains steady and helps in planning fund usage without disruptions. Forex fees apply when the INR collected via UPI payment apps is converted to your local currency. Some gateways offer mid-market exchange rates with a fixed markup, while others include variable charges depending on the volume. For example, a small markup of 1 to 1.5 percent is common on each transaction. This is in addition to any transaction fees levied by the platform. The UPI payment gateway integration you choose should offer clear visibility into settlement status, exchange rates used, and total deductions. A proper breakdown in your dashboard is essential for accounting and auditing. Always compare forex terms before onboarding with a provider, since even small percentage differences can impact profitability at scale. Read more: UPI Transaction Limit

Conclusion

Enabling UPI payment is no longer an option for international businesses targeting Indian customers—it is a critical part of doing business in this market. With Indian consumers relying heavily on UPI payment apps for daily transactions, integrating this option into your checkout flow builds trust, improves conversion, and eliminates payment friction. Thanks to advancements in fintech, accepting UPI for international payments no longer requires opening a local office or setting up an Indian bank account. Platforms like Razorpay, Paytm, Cashfree, EnKash, and others have made it simple, compliant, and quick to collect INR and settle in foreign currency. These solutions come with regulatory support, purpose code tagging, and forex settlement—all handled in the background. If your business operates in SaaS, e-commerce, consulting, education, or digital services, integrating a UPI payment gateway is one of the most practical decisions you can make. It opens your brand to millions of ready-to-pay customers who prefer UPI over other options. The opportunity is clear. UPI continues to dominate India’s digital payments landscape, and now global businesses can be a part of it.

FAQs

1. Can UPI be used for international payments? Yes. Indian users can use UPI for payments outside India in countries where UPI acceptance has been enabled. The payment usually happens by scanning a supported QR code through a UPI-powered app. 2. Where is UPI accepted outside India? UPI is live in countries such as the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar. Acceptance may still depend on the merchant location, local payment partner, UPI app, and the user’s bank. 3. How do international UPI payments work? The user scans a supported QR code abroad, checks the payable amount, and approves the payment with a UPI PIN. The amount is deducted from the linked Indian bank account in INR. The payment network then handles currency conversion and routes the payment to the overseas merchant. 4. Which UPI apps support international payments? UPI International works through selected UPI-powered apps and supported banks. Apps such as BHIM, PhonePe, Paytm, and other enabled UPI apps may support international payments, but availability can differ by bank, country, and merchant location. 5. Are international UPI payments free? Domestic UPI payments are usually free for users, but international UPI payments may include currency conversion costs, bank charges, forex markup, or network-related fees. The final INR amount is usually shown in the UPI app before the user approves the payment. 6. What is the limit for international UPI payments? The limit can vary depending on the user’s bank, UPI app, transaction type, and country. Many UPI transactions follow NPCI and bank-level limits, so users should check their app or bank before making a high-value payment. 7. Do I need to enable UPI International before using it abroad? Yes, in most cases. Users may need to activate UPI International or UPI Global for their bank account through a supported UPI app before paying abroad. NPCI also mentions activation of UPI Global or UPI International through UPI-powered applications. 8. Can businesses outside India accept UPI payments? Yes. International businesses can accept UPI payments from Indian customers through regulated payment partners or payment aggregators that support cross-border UPI collections. The customer pays in INR, while the business may receive settlement in foreign currency, depending on the provider and compliance setup. 9. Is UPI safer than using cards abroad? UPI can reduce card-detail exposure because the user approves the payment through a UPI app and UPI PIN. However, users should still pay only at trusted merchants, check the INR amount before approval, and avoid scanning unknown QR codes