Prime Minister Narendra Modi’s recent visits to France and UAE resulted in two major avenues for India’s digital payment system, the Unified Payments Interface (UPI), for international forays.
On July 14, the PM announced in Paris that Indian tourists would be able to make Rupee payments using UPI from atop the Eiffel Tower as an agreement has been made for usage of UPI in that country. A day later in Abu Dhabi, the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUAE) signed a Memorandum of Understanding (MoUs) to establish a framework for promoting the use of local currencies for interlinking their payment and messaging systems. Under the MoU, the two central banks agreed to cooperate on linking their Fast Payment Systems (FPSs) – UPI with the Instant Payment Platform (IPP) of UAE – and this linkage will enable the users in either country to make fast, convenient, safe, and cost-effective cross-border funds transfars. A day later, Indonesia’s Finance Minister confirmed that India and Indonesia are discussing to get their digital payments systems work together.
These international forays for UPI are significant as India engages with the global community to ensure that digital payment systems take the centre stage of payments made to not only ease secure transactions but also stop payment related crimes. Bhutan was the first country to adopt UPI in 2021 when Indian tourists were able to make UPI-based payments in that country. In October 2022, Oman formally embraced UPI for digital transactions across platforms. On February 21 this year, UPI was integrated with Singapore’s PayNow which allowed instantaneous transfer on a reciprocal basis. After Singapore, Bhutan is the second nation to have the UPI acceptance at merchant locations.
Know how UPI revolutionised the financial transactions
UPI system has revolutionised the way financial transactions are conducted in the country. Launched in April 2016 by the National Payments Corporation of India (NPCI), UPI has emerged as a game-changer. simplifying peer-to-peer payments, enabling seamless fund transfers, and promoting financial inclusion. Today it accounts for almost 40 per cent of the global digital payments made in a day and in the last couple of months have been clocking more than 9 billion transactions a month worth Rs 14 lakh crore. A recent report from PricewaterhouseCoopers (PwC) has mentioned that UPI transactions are likely to reach 1 billion transactions per day by 2026-27, accounting for 90 percent of the retail digital payments in the country.
UPI bridges the gap between the banked and unbanked population 
The UPI payment system has played a vital role in advancing financial inclusion in India and has empowered individuals, regardless of their socio-economic background, to participate in the digital economy. This inclusivity has bridged the gap between the banked and unbanked population, enabling even those without traditional banking facilities to engage in digital transactions. UPI has simplified the process of making payments and fund transfers. Users can link their bank accounts to UPI and create a Virtual Payment Address (VPA) that serves as their unique identifier. This eliminates the need to remember complicated bank account numbers and reduces the dependency on cash transactions. The intuitive user interface and real-time transaction processing have made UPI the go-to payment method for individuals and businesses alike
UPI’s open architecture and robust API ecosystem have fostered a thriving FinTech ecosystem in India. The UPI platform allows third-party applications to integrate seamlessly, leading to the development of innovative payment solutions. Numerous FinTech startups have emerged, leveraging UPI’s infrastructure to offer unique services such as bill splitting, expense management, and investment platforms.
Advantages of UPI  while doing transactions globally 
The foreign collaborations for UPI has many advantages. Firstly, collaboration between UPI and foreign payment systems enables seamless interoperability between different countries’ payment platforms. This allows Indian users to transact with individuals and businesses abroad using UPI, reducing the need for multiple payment methods and enhancing convenience.
Secondly, by integrating UPI with international payment systems, foreign collaborations are facilitating cross-border trade for Indian businesses. It is enabling secure and swift payments from customers overseas, eliminating the complexities associated with traditional international transactions and reducing costs.