UPI Goes Global — What Startups Should Know

In 2016, UPI made cashless payments simple for Indians. In 2024, it started showing signs of global ambition. And in 2025, it’s officially crossing borders.

But what does that mean for startups? Is it just a fintech flex, or is there something more to learn, build, or act on?

Let’s decode.

UPI: From Local Disruptor to Global Export

India’s Unified Payments Interface (UPI) has gone from QR-code chaos to becoming the world's most seamless real-time payment system. According to NPCI data, UPI processed over 14 billion transactions in June 2024 alone.

Now, countries like France, UAE, Singapore, Sri Lanka, and Mauritius have signed agreements to accept UPI payments. Indian tourists can now pay in Indian Rupees abroad, without converting currencies. That’s huge.

But this isn’t just about paying for croissants in Paris using PhonePe. It's about India exporting digital infrastructure — and that opens up a whole new playground.

Why Startups Should Pay Attention

UPI going global isn’t just a news item. It’s a signal.

Here’s why:

1. Cross-Border Commerce Just Got Easier

If you run a D2C startup that ships to international markets, UPI could make payments smoother for your Indian customers and potentially even for NRIs.

Startups in travel, edtech, and e-commerce can now tap into Indian customers abroad without forcing them to use international cards or face currency exchange headaches.

Imagine this:A Bangalore-based edtech sells courses to Indian students studying in Singapore. With UPI now live there, payments become frictionless. That’s one less reason for a cart to be abandoned.

2. The Fintech Stack is Getting a Reputation

India isn’t just a growth market. It's now a global product exporter — not in steel, but in code. If UPI can scale globally, other pieces of India Stack (like Aadhaar, DigiLocker, and ONDC) could follow.

Startups can now think about building solutions that plug into Indian infra and solve global problems. You don’t have to build Stripe to go international — maybe, just maybe, you can build the Stripe for Bharat that goes international with UPI.

3. UPI is Free — and That’s Not Normal

Here’s what people abroad are waking up to: real-time, zero-fee digital payments are not common.

If you’re a SaaS founder looking to expand into countries that now accept UPI, you’re walking in with an edge. UPI makes microtransactions viable. That unlocks a new pricing model for your services — especially for digital products or subscription services.

Imagine monthly plans for ₹15, ₹30 — things PayPal or Stripe would kill with fees. UPI changes the unit economics.

Who's Already Riding the Wave?

Some startups are already moving fast:

• PhonePe launched UPI services in UAE and Singapore, letting Indians abroad pay directly from their bank accounts using BHIM UPI.

• Pine Labs is enabling UPI acceptance in retail stores abroad, starting with Southeast Asia.

• NIPL (NPCI’s international arm) is forming partnerships at a rapid pace — think of them as India’s fintech diplomats.

For early-stage founders, this is a classic first-mover moment.

What Founders Should Start Doing

Let’s break it down by startup types:

a) Fintechs

Build APIs, plug-ins, or B2B solutions that help global merchants accept UPI. Think of yourself as a layer between NIPL and the businesses abroad.

There’s also a play in compliance, KYC, and reconciliation tools — international banks and governments will need help understanding the UPI way.

b) SaaS Startups

If you cater to Indian users or Indian diaspora, start offering UPI as a payment method. Also, look into how UPI AutoPay can simplify recurring payments across borders.

c) E-commerce/D2C

Re-evaluate your payment stack. Could you skip card fees by pushing UPI? Could you target Indian tourists abroad more aggressively?

d) Travel & Hospitality

Hotels, tour operators, food delivery platforms in UPI-enabled countries should look at integrating it. There’s also space for B2B travel-tech startups to offer this feature as part of their product suite.

But Hold Up—Challenges Ahead

It’s not all smooth. Here’s what to watch:

• Currency conversion is still a work-in-progress. Some setups allow INR payment, others still convert to local currency. That could confuse users.

• Regulations vary across countries. Fintech founders will need lawyers on speed dial.

• Awareness abroad is low. Indian users might get it, but merchants and foreign users need onboarding.

Also, UPI is still rooted in the Indian banking system. Its global version is being stitched together through bilateral partnerships. That means scale will take time.

Final Word: Think Bigger Than Borders

UPI going global isn’t just a tech story. It’s a mindset shift. Indian startups are no longer just solving for India. They’re exporting solutions.

So if you're building in fintech, commerce, or SaaS — or if your customers are Indian — treat this as more than a footnote. It might just be your wedge into a much larger market.

For Founders:

• UPI now works in UAE, France, Singapore, Sri Lanka, Mauritius (with more to come)

• It’s an unlock for D2C, SaaS, and fintech startups targeting Indian users abroad

• Think cross-border payments, new pricing models, and global partnerships

• It’s early days — and early days are when new players win

Want to write about your fintech startup or your experience with cross-border UPI? Hit us up — we're listening.

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