PhonePe, the most widely used UPI app in India, has introduced a new feature through which users can make international payments through UPI, making it the first fintech company in India to have such a facility. Now, Indians who are traveling abroad can make payments to foreign merchants using UPI.
PhonePe says the feature can be used at all international merchant outlets in the UAE, Singapore, Mauritius, Nepal and Bhutan that have a localized QR code. The company is planning to expand this facility to many more countries.
Rahul Chari, Co-Founder and CTO, PhonePe, said in a statement, “UPI International is the first big step towards taking the UPI experience to the rest of the world. I am sure this launch will prove to be a game-changer and enable merchants overseas Will completely change the way Indians pay at outlets.
The facility was developed in collaboration with NPCI International Payments Limited (NIPL). NIPL CEO Ritesh Shukla had in July last year conveyed its plans to expand UPI services to the overseas market, saying it could be a domestic alternative to Belgium-based cross-border payment system operator SWIFT.
Under this facility, Indian banks will deduct the foreign currency from the user’s bank account, and the recipient will receive the payment in their local currency. The process is similar to international debit card transactions.
How to activate the feature?
The feature can be activated on the PhonePe app. This can be done either at the merchant’s location or prior to the visit. This facility eliminates the need for a credit card or forex card for making payments outside India.
Although the app is available for download on both iOS and Android, it may take some time for the new feature to be available on users’ devices as the feature is still rolling out.