Phonepe Now Supports International UPI Transactions, Making It The First Indian Fintech To Do So

Phonepe Now Supports International UPI

PhonePe, which has the largest share of UPI transactions, has now enabled international payments, making it the first fintech platform in India to do so. Indians travelling abroad can now use UPI to pay foreign merchants.

This service deducts foreign currency from the user’s bank account, similar to international debit card transactions. PhonePe stated that all international merchant outlets with a local QR code in the UAE, Singapore, Mauritius, Nepal, and Bhutan are supported. More countries are expected to use the service.

“UPI international is the first major step in allowing the rest of the world to experience UPI as well,” said Rahul Chari, co-founder and CTO of PhonePe. I am confident that this launch will be a game changer, completely changing the way Indians travelling abroad pay at merchant outlets abroad.”

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On the app, the bank account can be activated for UPI international. It can be done either at the location where the user wishes to pay or prior to the trip. Customers will not need a credit card or a forex card to make payments outside of India with this service.According to reports from July of last year, NPCI’s International Payments CEO Ritesh Shukla stated that the unified payments interface (UPI) will be extended to international markets. It could be a homegrown alternative to SWIFT, a cross-border payment system operator based in Belgium.

The domestic UPI market is dominated by four apps: PhonePe, Google Pay, Paytm, and CRED Pay, which account for 96.4 percent of the total UPI market. According to data from the National Payments Corporation of India, PhonePe has the largest share of total UPI transactions in India, accounting for approximately 49% of the pie (UPI). PhonePe was followed by Google Pay (34%), Paytm (11%), CRED Pay (1.8%), and others (WhatsApp, Amazon Pay, and banking apps) with a combined 3.5% share.

According to NPCI data, UPI payments totaled Rs 12.98 lakh crore in January 2023, the same as in December 2022.