UPI International 2026 — 7 Countries Where Indian Travellers Can Pay With UPI (Singapore, UAE, France, Nepal, Bhutan, Sri Lanka, Mauritius)
By Kabir Malhotra (Kabir Malhotra writes about how Indian travel buyers actually pay — UPI vs credit card vs forex card surcharges, reward-point math on the top travel credit cards, RBI tokenisation, EMI-on-flights and the small fees that compound across a year of bookings.) · Published · 9 min read
Indian UPI is now live in 7 countries — Singapore, UAE, France, Nepal, Bhutan, Sri Lanka and Mauritius — with 1.5 million+ international merchants accepting QR-code payments from Indian UPI apps. Cross-border UPI volume has grown 20x year-on-year. For Indian travellers, this is a meaningful payment-options expansion: pay in INR from your Indian bank account, no forex card load, no markup beyond standard FX. This guide covers where UPI actually works abroad in 2026, how to enable international UPI on your app, real merchant acceptance levels country-by-country, and where it's still a backup option vs primary.
Where UPI works abroad in 2026 — the 7-country list
As of May 2026, Indian UPI is operational in seven countries through NPCI International Payments Ltd (NIPL) partnerships with local payment networks:
- Singapore: UPI ↔ PayNow link. Live since February 2023. Indian travellers can pay at any PayNow QR (most retail, restaurants, taxis, hawker centres). Also enables person-to-person remittance between Indian and Singapore bank accounts.
- UAE: UPI ↔ NeoPay (Mashreq Bank's payment network). Live since 2022, expanded substantially in 2024-25. Acceptance at most malls, restaurants in Dubai, Abu Dhabi, Sharjah; coverage thinner in smaller emirates. Also accepted at LuLu Hypermarkets, Carrefour, many petrol stations.
- France: UPI ↔ Lyra payment network. Live since February 2024. First European country to accept UPI. Started at the Eiffel Tower, expanded to Galeries Lafayette Paris ahead of the 2024 Paris Olympics. Acceptance is still tourist-focused (museums, premium retail) rather than general retail.
- Nepal: UPI ↔ Fonepay. Live since 2023. Wide retail acceptance across Kathmandu, Pokhara, Lumbini. The most "Indian-like" UPI experience abroad — works at small shops, taxis, restaurants, similar to using UPI in India.
- Bhutan: UPI integrated with Bhutan's national QR. Live since 2021 (Bhutan was actually the first foreign country to accept UPI). Wide retail acceptance across Thimphu, Paro.
- Sri Lanka: UPI ↔ LankaQR. Live since 2024. Tourist-focused acceptance growing — major hotels, restaurants, retail in Colombo and tourist zones. Still less coverage than Nepal/Bhutan.
- Mauritius: UPI ↔ MauCAS (Mauritius Central Automated Switch). Live since 2024. Tourist-focused acceptance; growing across Port Louis and resort areas.
Cross-border UPI transaction volume grew approximately 20x between FY 2023 and FY 2025. NPCI International (NIPL) is targeting 4-6 additional countries through 2025-2026 with Japan, Thailand, Indonesia and Malaysia in active discussion.
How to enable international UPI on your app
International UPI is not enabled by default on most Indian UPI apps. You typically need to opt in once per app:
- BHIM (NPCI's official UPI app): International UPI works by default — no separate enablement. Strongest international support of all UPI apps. Recommended for travellers.
- PhonePe: Open the app → Profile → Account & Bank Details → "International transactions" → toggle on. Some banks (HDFC, ICICI, Axis) require additional opt-in at the bank-app level.
- Google Pay India: International payments through Google Pay are limited to specific merchants (Google Pay is rolling this out slowly through 2026). For broader international UPI, switch to PhonePe or BHIM while abroad.
- Paytm: Same as PhonePe — Profile → International Transactions → Enable. Bank-app-level opt-in may also be required.
- BharatPe, Cred: International support varies and is generally weaker than the major three.
Once enabled, scanning a Singapore PayNow / UAE NeoPay / Bhutan / Nepal QR code with your Indian UPI app should work seamlessly. The transaction is debited from your Indian bank account in INR; the local merchant receives local currency. Exchange rate applied is the Visa/Mastercard-equivalent wholesale rate set by NIPL, typically tighter than bank forex card rates.
What it costs — forex rate and any fees
The economics of international UPI as of May 2026:
- Forex rate: NIPL applies a wholesale rate (similar to the Visa/Mastercard rate). Typically 0.5-1% above the absolute interbank rate. Comparable to or slightly better than 0%-markup credit card swipes.
- Transaction fees: No transaction fee for the consumer as of May 2026. The merchant pays a small interchange fee to their local network; the consumer is charged the conversion plus a 0-0.5% NIPL fee in some implementations.
- TCS impact: UPI international transactions are currently treated similar to credit card foreign spend — NOT counted toward the LRS ₹10 lakh annual threshold. This is a regulatory grey area that may change; verify before relying on it for high-volume use.
- Per-transaction limits: ₹2 lakh per transaction (default UPI limit). Most international merchants will be well under this.
Net effective cost: roughly equivalent to using a 0% forex markup credit card. The savings vs your regular debit card are real (~3-3.5%) but vs a Scapia or IDFC FIRST Wealth card, UPI is essentially neutral on cost.
Real merchant acceptance — where it actually works
The marketing pages talk about millions of merchants. The reality on the ground varies wildly:
Singapore: Strong acceptance. Hawker centres (Maxwell, Lau Pa Sat, Tekka), most MRT-area restaurants, NTUC FairPrice supermarkets, taxis (via PayLah equivalent QR), tourist attractions (Universal Studios, Marina Bay). Avoid: small independent shops outside CBD, some street vendors.
UAE: Mall acceptance is solid (Dubai Mall, Mall of the Emirates, Yas Mall). LuLu, Carrefour, ADCB ATMs. Petrol stations (ADNOC). Many restaurants in Downtown Dubai. Weaker: smaller independent businesses, taxis (use Careem/Uber instead).
France: Mostly tourist-focused as of 2026. Eiffel Tower, Galeries Lafayette, several Louvre Museum points. Limited acceptance in regular Parisian retail/restaurants — locals don't use Lyra QR widely. Don't rely on UPI as primary; carry a 0% markup credit card.
Nepal: Excellent acceptance. Works at small shops, restaurants in Thamel, taxis, hotels, even mountain trek company offices. The most India-like UPI experience abroad.
Bhutan: Wide acceptance in Thimphu and Paro. Restaurants, hotels, tour operator offices, even some temple-area shops. The Bhutan tourism board has actively promoted UPI to ease Indian-visitor payment friction.
Sri Lanka: Tourist zones (Colombo, Galle, Negombo, Kandy) have moderate acceptance. Major hotel chains, premium restaurants. Local-priced street food, small shops still cash-preferred.
Mauritius: Resort acceptance is solid. Port Louis tourist areas growing. Outside tourism hotspots, cash and cards still dominate.
When UPI international wins vs when to use other methods
UPI international is genuinely useful as a backup or convenience layer, but it's not yet a replacement for a 0% markup credit card on international travel. Specific recommendations:
Use UPI international when:
- You're in Nepal, Bhutan, Singapore or UAE and you want zero friction (no card swipe, no PIN, just scan-and-pay).
- You forgot to enable international transactions on your credit card before departure (UPI doesn't require this pre-trip enablement).
- You need to make a small payment ₹500-5,000 where the credit card is over-engineered (street food in Bhutan, taxi in Singapore).
- You're sending money to a fellow Indian traveller or family in those 7 countries (UPI international P2P is significantly cheaper than wire transfer or Wise for amounts <₹50K).
Use a 0% markup credit card (Scapia, IDFC FIRST Wealth) instead when:
- You're in any country NOT in the 7-country UPI list (62+ countries Indians visit regularly).
- You want fraud protection (credit card chargebacks vs UPI which is immediate-debit irreversible).
- You want to earn rewards on the spend.
- You need to use the card for online bookings or hotel stays (most international online merchants don't accept UPI yet).
Use a forex card (Niyo Global) for cash withdrawals at ATMs. UPI international doesn't help with ATM cash needs.
What's coming next — the 2026-27 expansion roadmap
NPCI International (NIPL) has publicly announced active negotiations or pilots in:
- Japan: Discussions with JCB and selected Japanese banks. Tourist-focused launch likely in 2026.
- Thailand: PromptPay (Thai national QR) integration in pilot. Likely live by late 2026.
- Indonesia: QRIS integration in discussion. Bali tourist focus likely first.
- Malaysia: PayNet integration in discussion.
- Saudi Arabia: SARIE / SAMA national QR integration in early discussion.
- Maldives, Qatar, Oman: All have stated interest; no formal NIPL agreements yet.
- USA, UK, Australia: Limited near-term outlook — these are credit-card-dominant markets where UPI's QR-based model has fewer existing rails to connect into. NIPL has indicated lower priority for these.
The honest 5-year picture: by 2030, expect UPI international to cover most major South/Southeast Asian and Gulf travel destinations + selected European tourist hotspots. Don't expect parity with credit cards / forex cards as a primary international payment method — UPI's international rollout is additive convenience, not yet substitutive infrastructure.
Frequently asked questions
Which countries accept Indian UPI in 2026?
Seven countries: Singapore (via PayNow), UAE (NeoPay/Mashreq), France (Lyra network), Nepal (Fonepay), Bhutan (national QR), Sri Lanka (LankaQR), Mauritius (MauCAS). Total of 1.5M+ international merchants. Cross-border transaction volume up ~20x year-on-year. NPCI International targets 4-6 more countries through 2025-26.
How do I enable international UPI on PhonePe / Google Pay / Paytm?
BHIM works internationally by default. PhonePe: Profile → Account & Bank Details → International transactions → toggle on. Paytm: Profile → International Transactions → Enable. Google Pay India has limited international support; switch to PhonePe or BHIM while abroad. Some banks (HDFC, ICICI, Axis) require additional opt-in at the bank-app level.
Is UPI international cheaper than using a credit card abroad?
Roughly equivalent to a 0% forex markup credit card like Scapia or IDFC FIRST Wealth. NIPL applies a 0.5-1% conversion margin vs the absolute interbank rate. Better than regular debit cards (3-3.5% markup). Worse than no-fee P2P transfers via Wise for large remittances.
Does UPI international trigger TCS?
As of May 2026, UPI international transactions are treated similar to credit card foreign spend — NOT currently counted toward the ₹10 lakh annual LRS threshold for TCS purposes. This is a regulatory grey area. For high-volume international UPI use, verify with your CA / RBI guidance before assuming TCS exemption.
Can I withdraw cash from foreign ATMs using UPI?
No — UPI international is merchant-payment only (scan a QR code at the till). No ATM cash withdrawal capability. For international ATM cash, use a Niyo Global debit card (free unlimited ATM withdrawals worldwide) or any debit/credit card with ATM access.
Will UPI work in the USA, UK, or Australia by 2026?
Unlikely in the near term. NPCI International has prioritised South/Southeast Asian and Gulf markets where QR-based payment infrastructure is already strong. USA, UK, Australia are credit-card-dominant markets with fewer existing QR rails to integrate into. Carry a 0% markup credit card for these destinations.