UPI International Expansion in 2026 — Singapore, UAE, France and What Actually Works Today
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 · Last updated · 10 min read
UPI has quietly become accepted in a growing list of countries. Here is the practical 2026 state of UPI international — where it works, what the fees are, and how it stacks up against forex cards and credit cards on overseas spend.
The UPI international story in 2026 — from novelty to credible payment option
When NPCI International (NIPL) signed the first overseas UPI acceptance agreements in 2021-2022 (Bhutan, then Singapore via PayNow linkage), the use case was largely symbolic. The transaction volumes were minimal, the merchant acceptance was thin, and most Indian travellers never tried it. Four years later in 2026, UPI international acceptance has expanded to roughly 12 countries with meaningful merchant footprints in Singapore, UAE, France, Sri Lanka, Mauritius, Nepal, Bhutan, and selected coverage in Saudi Arabia, Oman, Qatar, Thailand and Malaysia.
The technology architecture has matured. UPI international acceptance now works in two distinct flavours. The first is direct UPI QR code acceptance at overseas merchants, where the merchant accepts a UPI QR scan from any Indian UPI app (PhonePe, Google Pay, Paytm, BHIM) and settles the transaction in the local currency through NPCI's international rails. The second is bilateral instant payment linkages — UPI-PayNow with Singapore, UPI-RTP with UAE, UPI-FPS with France — where the underlying account-to-account transfer rails are integrated for cross-border bill payment, remittance and merchant settlement.
For Indian travellers, the practical question in 2026 is: does UPI work for me as a travel payment option, and where does it sit alongside my forex card and credit card stack? This article walks through the structured answer by country, the fee structures, the merchant acceptance reality, and the use cases where UPI international is genuinely better than the alternatives.
Singapore — the deepest UPI international footprint
Singapore was the first major international UPI acceptance market via the UPI-PayNow linkage that launched in 2023 and has progressively expanded. As of 2026, Indian travellers in Singapore can use UPI at most retail merchants that accept PayNow QR — which is a wide footprint covering hawker centres, restaurants, malls, taxis, MRT top-ups, and most major retail chains. The QR is universal; you scan the same SGQR or PayNow QR with your Indian UPI app, and the transaction processes.
The mechanics: you open PhonePe, Google Pay or Paytm in Singapore, scan the merchant QR, enter the amount in SGD, and confirm. The app shows the INR equivalent at the live conversion rate, applies the cross-border processing fee (typically 1.5 to 2 percent of the transaction value), and posts the INR debit to your linked Indian bank account. The merchant receives SGD in their PayNow-linked Singapore bank account. Settlement typically completes within minutes. Daily transaction limits are typically capped at SGD 5,000 equivalent (roughly 3.1 lakh INR) per day.
The cost comparison is interesting. UPI international to Singapore costs 1.5 to 2 percent versus 3.5 to 4 percent on a standard Indian credit card with forex markup or zero percent on a Niyo Global or Scapia forex card. The UPI option is competitive with mid-tier premium credit cards (HDFC Diners Black at 2 percent forex markup) and more expensive than zero-markup forex cards. The convenience advantage is significant — UPI works at small merchants who do not accept Visa or Mastercard, particularly at hawker centres and small food vendors. For travellers spending on street food and small purchases, UPI in Singapore is genuinely useful.
UAE — the recent rollout and the merchant build-out
UAE-India UPI acceptance launched in 2024 and expanded through 2025 and 2026. The acceptance is via the NEOPAY (Mashreq Bank-owned payment processor) infrastructure and selected other UAE acquirer integrations. As of 2026, UPI is accepted at a growing set of UAE merchants concentrated in Dubai and Abu Dhabi tourist areas — selected restaurants, retail outlets, taxis (RTA taxi network has UPI acceptance), and tourist attractions including the Dubai Frame, Burj Khalifa observation deck, and Atlantis Aquaventure.
The mechanics work similarly to the Singapore case — open your Indian UPI app, scan the merchant QR, transact in AED, settle in INR. Cross-border processing fees are 1.75 to 2.25 percent. Daily limits typically 5,000 to 10,000 AED equivalent per day (roughly 1.1 to 2.2 lakh INR). The merchant acceptance is more concentrated in tourist-area merchants than across the full UAE retail footprint. Most major hotel chains accept UPI; many smaller restaurants and street merchants do not yet.
The UAE case is genuinely useful for Indian travellers because UAE is one of the highest-volume Indian outbound markets. A meaningful share of Indian visitors prefer UPI's familiarity to using a forex card or credit card. The conversion rate is competitive — at 1.75 to 2.25 percent processing fee versus 3.5 percent standard credit card forex markup, UPI saves roughly 1.25 to 1.75 percent on every transaction. For a typical 50,000 to 1 lakh INR Dubai spend, that is 600 to 1,750 rupees saved versus credit card swipe. Read more in our piece on best zero forex markup cards 2026.
France — Europe's UPI launch and tourist payment integration
France became the first European country to launch UPI acceptance in 2024, with the integration with Lyra (the French payment processor) covering the Eiffel Tower, Louvre Museum, and a growing set of tourist-focused merchants in Paris and selected other French cities. The acceptance is concentrated at tourist attractions, with limited merchant penetration into regular French retail.
The mechanics: open your Indian UPI app at supported merchants in France, scan the QR code, transact in EUR, settle in INR. Cross-border processing fees are roughly 2 to 2.5 percent. Daily limits typically 1,000 EUR (roughly 90,000 INR) per day or higher depending on your bank's UPI international permission. The user experience at the supported merchants is genuinely smooth — the Eiffel Tower ticket counters have well-integrated UPI acceptance with confirmation in seconds.
The France case is positioned more as a tourist-specific payment option than a general-purpose payment vehicle. Indian travellers should expect UPI acceptance at major tourist attractions and selected hotels but not at typical French restaurants, retail stores, or transport networks (Metro tickets, SNCF train tickets typically still require Visa, Mastercard or EU local payment methods). For tourist attraction entry tickets specifically, UPI works well; for the rest of your France trip, default to a forex card or credit card.
Sri Lanka, Mauritius and the broader QR-enabled markets
Sri Lanka has comprehensive UPI acceptance through the LANKAQR system integration with NPCI. Indian travellers in Colombo, Kandy, Galle and other major tourist locations can use UPI at most retail merchants, hotels, restaurants and tuk-tuks. The acceptance is broader than in any other UPI international market beyond Singapore. The cross-border processing fee is 1.5 to 2 percent, with daily limits typically up to LKR 100,000 equivalent (roughly 30,000 INR).
Mauritius launched UPI acceptance in 2024 via the MauCAS system. Coverage is concentrated at tourist-focused merchants in Grand Baie, Port Louis, and major resort areas. Hotels, restaurants and tourist activities increasingly accept UPI; smaller merchants and outside-tourist-zone retail typically do not. Processing fees around 2 percent.
Nepal and Bhutan have the deepest UPI acceptance footprint because of the long-standing cross-border payment integration (NEPS in Nepal, BOB-NPCI integration in Bhutan). Indian travellers in both countries can use UPI at essentially any merchant who accepts QR payments. The fee structure for these markets is often more favourable than other international UPI corridors because of the bilateral arrangements. For Indians visiting Bhutan and Nepal, UPI is often the most convenient payment option, period.
Saudi Arabia, Oman, Qatar, Thailand and Malaysia
Saudi Arabia (mada network), Oman and Qatar have limited UPI acceptance concentrated at specific merchant categories — primarily Hajj and Umrah service providers, tourist attractions, and selected hotels. The acceptance footprint is materially narrower than UAE or Singapore. For Hajj and Umrah pilgrims specifically, UPI acceptance at selected service providers can be useful; for general tourism the acceptance is too thin to rely on. Processing fees 2 to 2.5 percent.
Thailand launched UPI acceptance in 2024 via the PromptPay integration, with acceptance at selected tourist attractions, hotels and a growing list of restaurants in Bangkok and Phuket. The merchant footprint is growing but not yet broad. Malaysia (DuitNow integration) follows a similar pattern with concentrated acceptance at major tourist attractions and selected hotels in Kuala Lumpur and Penang. Processing fees 2 percent.
The general pattern across these emerging UPI markets is that acceptance is real but concentrated at tourist-focused merchants. For Indian travellers, the practical approach is to download the relevant local payment app (often the local app needed to scan some QRs) and check the UPI international support on your primary Indian UPI app before relying on it for a particular trip. Carrying a backup forex card or credit card is essential because UPI acceptance is not yet universal at any non-Singapore international market.
The limits, the fees and the fine print
UPI international has structural limits that travellers should understand. First, the daily transaction limits. Most Indian banks set UPI international daily limits at INR 1 to 3 lakh equivalent per day, with per-transaction limits of INR 25,000 to 1 lakh depending on the bank and merchant category. These limits are tighter than UPI domestic limits and may constrain larger transactions like hotel stay full settlements.
Second, the processing fees. The 1.5 to 2.5 percent cross-border processing fee is charged on top of the conversion rate. The conversion rate itself is typically the live FX rate (no additional markup at the rate layer), but the processing fee is meaningful. The fee structure is generally more transparent than credit card forex markup but the absolute cost on larger transactions can add up.
Third, the merchant acceptance reality. UPI international acceptance is QR-based, which means it requires the merchant to have actively enabled UPI acceptance on their terminal. Not every merchant in a UPI-supported country accepts UPI. Always confirm UPI acceptance before assuming you can pay with it. The major UPI apps (PhonePe, Google Pay, Paytm) have country-specific acceptance maps for UPI international that you can check before your trip.
UPI international versus forex card versus credit card — the choice matrix
For Indian international travellers, the practical choice matrix between UPI international, forex card and credit card depends on transaction size, merchant type and convenience.
For small transactions (under 1,000 INR equivalent) at QR-accepting merchants in UPI-supported countries — UPI international wins. The convenience is unmatched (no card swipe, no PIN entry, no signature), the fee structure is competitive at 1.5 to 2.5 percent versus 0 percent on Niyo Global or Scapia, and the small absolute fee on small transactions is negligible. Hawker centres in Singapore, taxis in Dubai, tourist attractions in France — UPI is the natural payment option.
For medium transactions (1,000 to 20,000 INR equivalent) at any merchant — the choice is closer. Zero-markup forex card (Scapia, Niyo Global) is cheaper at zero markup versus UPI's 1.5 to 2.5 percent processing fee. But UPI may be more convenient for QR-accepting merchants and may avoid the card-decline risk that occasionally afflicts overseas card transactions. For travellers carrying both, the choice is often situational.
For large transactions (20,000 INR equivalent and above) at any merchant — forex card or credit card wins. The percentage fee on UPI international scales proportionally, so a 50,000 INR transaction costs 750 to 1,250 INR via UPI versus zero on Niyo Global or Scapia. For hotel stays, retail shopping, large restaurant bills — use the forex card. The credit card with premium status (lounge access, insurance, EMI option) may also be the right choice for very large transactions where the ancillary benefits matter. Read more in our companion piece on forex cards compared 2026.
The roadmap through 2027 — where UPI international goes next
NPCI International (NIPL) has publicly stated targets to extend UPI international acceptance to 30 plus countries by 2028. The active rollout pipeline through 2026-2027 includes deeper UK acceptance (UPI-FPS integration is in pilot), Indonesia (BI-FAST integration discussions advanced), Vietnam (NAPAS integration in early stages), Australia (NPP integration in evaluation), and selected African markets (Tanzania and Kenya in discussions via cross-NPCI agreements).
The structural drivers are clear. Indian outbound travel is one of the world's fastest-growing tourism markets. Indian remittance corridors are deepening. The Indian diaspora in major markets (US, UK, UAE, Singapore, Australia, Canada) is increasingly transactionally connected to India. UPI international acceptance is a natural extension of these trends, with India able to negotiate from a position of strength because of the massive UPI user base.
The risk factors are RBI regulatory adjustments (FEMA compliance, AML safeguards, foreign exchange management implications) and the operational complexity of multi-country settlement systems. NIPL has navigated these reasonably well so far but the pace of expansion is constrained by the regulatory bandwidth on both sides of each cross-border arrangement. For Indian travellers, the practical implication is that UPI international is genuinely becoming a meaningful payment option but it will not replace forex cards or credit cards as the primary overseas spend vehicle for at least the 2026-2027 horizon. Treat it as a useful supplementary option, particularly for small QR-based transactions in supported markets. Read more in our piece on airport lounge access in India 2026.
Frequently asked questions
Can I really use UPI in Singapore for everyday transactions?
Yes, the UPI-PayNow integration in Singapore is the most mature UPI international market. Most Singapore merchants who accept PayNow QR also accept Indian UPI app scans — hawker centres, restaurants, malls, taxis, MRT top-ups, retail chains. Cross-border processing fee is 1.5 to 2 percent, daily limit typically SGD 5,000 equivalent. The user experience is genuinely smooth and many Indian travellers in Singapore now default to UPI for small-to-medium transactions.
What is the cross-border processing fee on UPI international transactions?
Typically 1.5 to 2.5 percent depending on the destination country and the specific Indian bank acquiring the transaction. Singapore and Sri Lanka are at the lower end (1.5 to 2 percent), UAE and France in the middle (1.75 to 2.25 percent), and other markets at the higher end (2 to 2.5 percent). The fee is on top of the live FX rate (which itself has no additional markup). The fee structure is more transparent than credit card forex markup but on larger transactions the absolute cost adds up.
Do all Indian UPI apps support UPI international or just some?
PhonePe, Google Pay, Paytm, BHIM, and major bank-issued UPI apps (HDFC, ICICI, Axis, SBI) all support UPI international in the major rollout markets. The merchant-side acceptance is what determines whether your specific app works at a specific merchant. The international acceptance has been progressively rolled out by the major UPI apps; all should work in Singapore, UAE, France, Sri Lanka. For newer or smaller-volume markets, check your specific app before relying on it.
What are the daily transaction limits on UPI international?
Most Indian banks set UPI international daily limits at INR 1 to 3 lakh equivalent per day, with per-transaction limits of INR 25,000 to 1 lakh depending on the bank, the merchant category and the specific country corridor. Some banks have lower default limits with higher limits available on request. These limits are tighter than UPI domestic and may constrain larger transactions like full hotel settlements. Check your bank's specific UPI international limits before relying on it for a large transaction.
Does UPI international acceptance work at hotels and tourist attractions?
Yes at major tourist attractions in UPI-supported countries — Eiffel Tower and Louvre in France, Burj Khalifa and Dubai Frame in UAE, multiple tourist attractions in Singapore, Sri Lanka, Mauritius, Nepal and Bhutan have UPI acceptance. Hotel acceptance is more variable — major chains (Marriott, Hilton, Hyatt) in UPI-supported markets often accept UPI; smaller boutique hotels and Airbnb-style rentals typically do not. Always confirm UPI acceptance at booking or check-in before assuming.
How does UPI international fees compare to forex card and credit card overseas charges?
UPI international cross-border processing fee of 1.5 to 2.5 percent compares favourably to standard credit card forex markup of 3.5 to 4.13 percent (including GST) — UPI saves roughly 1 to 2.5 percent versus standard cards. But zero-forex-markup cards (Niyo Global, Scapia) at 0 percent markup are cheaper than UPI international on the same transaction. The choice depends on transaction size, merchant convenience and your overall payment stack.
Can I get reward points or cashback on UPI international transactions?
Generally no. UPI transactions (domestic or international) typically do not earn reward points or cashback in the way that credit card swipes do. Some UPI apps and partner banks offer occasional promotional cashback on specific merchant categories, but the rates are typically 0.5 to 1 percent on selected transactions rather than the structured reward earning of credit cards. For reward-point-maximising travellers, credit card swipe remains the higher-value option despite the higher forex markup; for cost-minimising travellers, UPI international or zero-markup forex card is better.
What happens if a UPI international transaction fails or needs a refund?
Failed UPI international transactions typically reverse to your account within 1 to 7 working days. The reversal usually credits at the original INR debit amount. Refunds from merchants for completed transactions process through the standard UPI dispute and refund mechanism, with the INR credit at the live FX rate at the time of refund (which may differ from the original transaction rate if FX has moved). The dispute resolution mechanism is functional but slower than credit card chargeback processes. Keep transaction records and follow up via your UPI app's support if refund is delayed.