UPI Expansion: Now Available in 11 Countries, But Cost Savings Over Forex Cards and Cash Are Debatable

India's digital payments revolution has crossed another border milestone as the Unified Payments Interface (UPI) now operates in 11 countries outside India. The expansion, driven by the National Payments Corporation of India (NPCI) International, marks a significant step in India's fintech export strategy.

The countries where UPI is currently operational include Singapore, the United Arab Emirates, Nepal, Bhutan, Mauritius, France, Saudi Arabia, the United States, Canada, Australia, and Sri Lanka. In each market, the implementation model varies — some countries have direct interoperability with local payment systems, while others require users to link Indian bank accounts or use partner apps.

However, financial experts warn that consumers should not automatically assume UPI is the cheapest option when traveling abroad. While the transaction costs through UPI are indeed lower compared to traditional international card payments — which often carry dynamic currency conversion charges, foreign transaction fees, and markups — the picture is more nuanced.

Forex travel cards, loaded with multi-currency balances, continue to offer competitive rates, especially for travelers who lock in exchange rates before departure. Cash withdrawals at ATMs abroad can also be economical depending on one's banking relationship and the absence of surcharges. UPI transactions, on the other hand, typically involve a conversion at the point of sale using the card network's exchange rate, which may not always be the most favorable.

The Reserve Bank of India has been actively pursuing UPI's international rollout as part of India's broader goal to position itself as a global digital payments hub. The NPCI International has signed Memorandums of Understanding with multiple countries to enable cross-border interoperability.

Travelers using UPI abroad should compare total costs — including any withdrawal fees, currency conversion spreads, and platform charges — against forex cards and cash options for each specific transaction before deciding on their preferred payment method.