UPI International Transfer: How It Works, Charges & Supported Countries

UPI is one of India's most successful financial services, and this innovation single-handedly positioned the country as a global leader in real-time payments. In India, UPI is used widely for both P2P(person-to-person) and P2M(person-to-merchant) transactions and is preferred for its speed, reliability and high success rates. 

The most recent development with UPI is the introduction of various international payment features that allow both Indian and non-Indian users to make real-time payments with ease. 

In this article, we discuss what UPI international payments are, what type of payments they allow for, how they work, and most importantly, which countries they are valid in and what charges to expect along the way.

A UPI international payment is a system that extends the convenience and speed of India's domestic Unified Payments Interface (UPI) to cross-border transactions. It's not a single service but rather a set of interconnected initiatives designed to enable seamless, real-time payments between India and other countries.

The versatility of the entire UPI international payment system allows it to function in three primary ways:

1. For Indian Travellers

If you're an Indian citizen traveling abroad, you can use your existing UPI-enabled app (like Google Pay, PhonePe, or BHIM) to make payments at foreign merchant locations. The payment is made by scanning a local QR code, and your Indian bank account is debited in Indian Rupees (INR) after an on-the-spot currency conversion. 

This works only in countries that have established a partnership with NPCI International Payments Limited (NIPL).

2. For Cross-Border Remittances

This feature allows an Indian user in India to send money directly to a person or business outside the country, and vice versa. However, this is currently limited to specific bilateral agreements. 

The most prominent example is the linkage between India's UPI and Singapore's PayNow, which enables instant, low-cost P2P (person-to-person) remittances between the two countries.

3. For Foreigners and NRIs Visiting India

This is a major recent development that allows non-Indian residents to make UPI payments while in India. The UPI One World initiative enables foreign nationals and Non-Resident Indians (NRIs) to link their international mobile numbers to a Prepaid Payment Instrument (PPI) wallet. 

After a simple KYC (Know Your Customer) process, they can load the wallet with Indian Rupees and use it to make merchant payments anywhere a UPI QR code is accepted in India. This is especially useful for tourists as it removes the need to carry cash or exchange foreign currency.

The seamlessness of UPI international transfers is made possible by a sophisticated web of players and technologies working together. 

Here are the core components that enable the system to function:

1. NPCI International Payments Limited (NIPL)

NIPL, a subsidiary of the NPCI, is the driving force behind the global expansion of UPI. It is responsible for forging partnerships and signing agreements with foreign payment networks, central banks, and financial institutions to enable cross-border UPI transactions.

2. Bilateral Payment Networks

UPI does not operate in a vacuum. Instead, it relies on agreements to link with other countries' domestic real-time payment networks. 

The UPI-PayNow linkage with Singapore is a prime example of such a bilateral network that creates a direct remittance corridor for P2P and P2M (person-to-merchant) transfers. 

Similar partnerships with networks like Nepal's Fonepay allow Indian users to make payments at local merchants.

3. UPI Apps (Google Pay, PhonePe, BHIM, etc.)

These are the front-end applications that the user interacts with. To make international payments, these apps must be enabled with the "UPI International" feature. They act as the interface, facilitating the QR code scan, showing the real-time currency conversion, and processing the transaction request through your linked Indian bank account.

4. Indian Banks

Indian banks must support UPI International transactions and be integrated into the NIPL-partnered network. The bank is responsible for debiting your account in INR and handling the foreign exchange conversion as per the prevailing rates.

5. Foreign Merchant and Acquirer Network

On the other end of a P2M payment, the foreign merchant must have a payment terminal or QR code that is part of a local payment network that has an agreement with NIPL. 

For example, a merchant in France might be enabled to accept UPI through a partnership with Lyra Group, a French payment service provider. This network receives the payment in the local currency and settles it with the merchant.

The UPI international transfer limit is generally aligned with the domestic UPI limits, but with some specific nuances. The standard per-transaction limit for most UPI payments is ₹1 lakh (INR 100,000). This limit typically applies to UPI international payments made by Indian residents to foreign merchants.

However, there are a few important exceptions and details to consider:

Higher Limits for Specific Categories

NPCI has increased the transaction limits for certain high-value categories, and these changes can also apply to international transactions where relevant. For example, for certain categories, ₹2 lakh is the limit for foreign remittances. 

As of September 15, 2025, NPCI has further increased the per-transaction limit to ₹5 lakh for categories like travel, insurance, and credit card bill payments, and a daily cumulative limit of ₹10 lakh. 

Bank-Specific Limits

While NPCI sets the overarching limits, individual banks and UPI apps have the discretion to impose their own, often lower, transaction limits. Always check with the bank and your specific UPI app (e.g., Google Pay, PhonePe, etc.) for their exact limits, as they may differ from the general guidelines.

The list of countries that support UPI international payments is continuously growing as NIPL forges new partnerships. The countries where you can currently use UPI for merchant payments (P2M) or for remittances (P2P) are:

Countries with live UPI acceptance

• Bhutan
• France
• Mauritius
• Nepal
• Singapore
• Sri Lanka
• United Arab Emirates (UAE)

Countries in progress or with signed agreements

NIPL has signed Memorandums of Understanding (MoUs) with several other countries and is in the process of being launched or integrated with their domestic payment systems. These include:

• United Kingdom
• Oman
• Malaysia
• Qatar
• Thailand
• Cyprus

Unlike domestic UPI payments, which are largely free for the end-user, international transfers typically incur costs related to currency conversion and network fees. Here are some of the charges to expect: 

1. Currency Conversion Charges

While the UPI apps themselves (like Google Pay, PhonePe, etc.) do not levy a separate transaction fee, your bank will charge a foreign exchange markup. This is a small percentage added to the wholesale exchange rate, and it is how the banks and payment networks make a profit on the conversion. 

The exact percentage varies by bank, but it's typically more competitive than traditional credit card foreign transaction fees.

2. Bank Charges 

The banks involved in the remittance will apply a fee for the service. While this is often a small, fixed fee to promote low-cost transfers, it is not zero.

Benefits for Indian Businesses

UPI international transfers open up new opportunities for Indian businesses that deal with foreign clients, travelers, or partners.

1. Direct acceptance from global customers: Indian merchants can receive payments from international tourists or foreign buyers using UPI-linked wallets or apps, reducing reliance on cash or costly POS terminals.

2. Reduced transaction costs: Compared to international card networks or PayPal, UPI offers lower fees, which means higher profitability.

3. Instant settlements in INR: Payments are credited in Indian Rupees without long waiting periods, helping businesses manage working capital more efficiently.

4. Stronger remittance corridors: With corridors like UPI-PayNow, Indian service providers, freelancers, and exporters can get paid faster by international clients.

5. Expanded market access: By aligning with NPCI International Payments Limited (NIPL) partnerships, Indian businesses can easily tap into growing remittance networks across Asia, the Middle East, and Europe.

Benefits for Individuals

1. Ease of travel: Indian travelers can pay at foreign merchants directly using UPI apps instead of relying on forex cards.

2. Low-cost remittances: Families can send or receive money across supported corridors at lower fees.

3. Convenient payments for NRIs and tourists: UPI One World enables seamless digital payments in India without foreign exchange hassles.

Cross-border payments come under a stricter regulatory environment than domestic ones, and UPI international transfers are no exception. 

1. Oversight by NPCI and NIPL

The National Payments Corporation of India (NPCI) governs UPI, while its subsidiary, NPCI International Payments Limited (NIPL), is responsible for expanding UPI globally. NIPL signs Memorandums of Understanding (MoUs) with foreign payment networks and central banks, and also sets the technical and compliance standards for cross-border interoperability.

2. Foreign Exchange Management under FEMA

All outward and inward remittances through UPI are subject to India's Foreign Exchange Management Act (FEMA). This means transfers must follow prescribed categories such as personal remittances, business payments, or trade settlements. 

Exporters and service providers must submit supporting documents like invoices to ensure proper classification and avoid regulatory scrutiny.

3. FATF and AML/CTF Compliance

International payments must comply with Financial Action Task Force (FATF) standards, which form the basis of anti-money laundering (AML) and counter-terrorist financing (CTF) rules. Both Indian and foreign banks involved in a transaction are required to apply robust KYC (Know Your Customer) and transaction monitoring processes to reduce risks of fraud or illicit use.

4. Bilateral and local regulations

Each partner country sets its own legal and regulatory framework for allowing UPI transactions. For example:

• Singapore: The UPI-PayNow corridor is regulated jointly by the Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI).
• UAE and France: Merchant acceptance requires partnerships with licensed local acquirers, who ensure compliance with regional payment regulations.
• Nepal: Integration with Fonepay comes under the supervision of Nepal Rastra Bank.

5. Data privacy and security rules

Since payments involve cross-border data transfer, participating banks and networks must comply with both India's Data Protection laws and the host country's privacy regulations. Payment data has to be localized or processed within secure frameworks to meet these obligations.

At Xflow, we know how challenging cross-border payments can be with high FX costs, hidden fees, endless compliance checks, and long settlement cycles. That's why we built our platform to make international transfers faster, simpler, and completely transparent for you.

Why businesses choose Xflow

• Transparent FX & savings: Always know the exact INR amount that reaches your account before sending. Our FX rate lock helps you avoid currency risks, and our pricing saves you up to 50% on foreign exchange costs.
• Faster access to funds: Don't wait days for your payments to clear. With Xflow, funds are typically settled in your account within 24 hours.
• No transaction limits: Collect large international payments on a single invoice, no need to split or restrict amounts.
• Safe & compliant: Every transaction is secure with our ISO 27001 and SOC 2 certified platform, and you get one-click eFIRA within 24 hours to stay audit-ready without chasing banks.

If you're running a platform, our white-labeled APIs let you:

• Embed international payments directly into your product.
• Keep your brand front and center while we handle settlement and compliance in the background.
• Go live fast with integrations that take less than two weeks.

We're trusted by 7,000+ businesses, including exporters, startups, fintechs, freelancers, and enterprises across 140+ countries, to move money globally with speed and confidence.

Get started with Xflow today and simplify your international transfers without limits, delays, or hidden fees.