Game-changer: Using UPI abroad is just as easy as you’d expect

The National Payments Corporation of India (NPCI) has been expanding UPI's global footprint since its first international collaboration with Singapore in 2020. Countries that now accept UPI payments include Singapore, the United Arab Emirates, Sri Lanka, Mauritius, Bhutan, Nepal and France. 

Arun Panicker, a 56-year-old traveler from India, recently experienced this firsthand during a trip to Colombo. On arrival, he noticed a sign at the airport that said UPI payments were now available in Sri Lanka. 

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When he visited a local coffee shop, he saw a QR code with the UPI logo and decided and give it a try. "At the counter, I scanned the QR code, and the first thing it asked me to do was activate UPI International on my Google Pay app. That was very simple—requiring just a few taps and entering my passcode," he said.

The payment process mirrored the familiar experience of domestic UPI transactions. Arun said, “The actual payment process was smooth, exactly like I would do a UPI transaction back home. Payments are made in real-time, too.” The app displayed the currency conversion rate and a conversion fee charged by his bank, which typically ranges from 2.5% to 2.95%.

No need to exchange currency

Panicker said UPI International offers a valuable payment alternative for Indian travelers in Sri Lanka. He said, "This was so much more convenient than using cash or my credit card. There was no need to worry about exchanging currency or getting the correct change. I just scanned the code, entered my passcode and the payment went through instantly." 

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The daily transaction limit for international UPI transactions is the same as the domestic cap, typically up to ₹1 lakh, though this varies between banks. While there are no additional charges for using UPI International, users should be aware that their bank may charge a foreign exchange conversion fee, which varies by bank and country.

In comparison, debit and credit cards often incur fees ranging from 2% to 4% on international transactions. Credit cards may offer cashback rewards that can offset these fees, but such benefits vary by issuer. Forex cards, like those from Axis Bank or BookMyForex, may offer zero forex charges but they are accepted only in certain developed countries.

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