India Stalls Alipay+–UPI Link Over Security Concerns

India has stalled a proposal by Alipay+ to link with the country’s Unified Payments Interface (UPI), citing national security and data protection concerns, according to three sources familiar with the discussions. The proposal, submitted in January, aimed to allow Indian travellers to use UPI-linked services at more than 150 million Alipay+ merchants across China, Hong Kong and other parts of Asia.

Indian law enforcement agencies reportedly raised concerns over potential data breaches, cyberfraud and money-laundering risks. The sources said particular scrutiny has been placed on Alipay+ because of its links to China, including questions over how customer and transaction data would be processed, stored and managed. India’s foreign ministry reportedly cited “political grounds” as a reason for stalling the proposal.

The proposed partnership comes as payment networks globally seek to build faster and cheaper cross-border payment systems. Alipay+ and UPI have been expanding regional partnerships, with similar payment-system connections being pursued in countries including Malaysia, the Philippines, South Korea, Singapore and France. However, India’s security concerns have complicated the potential UPI-Alipay+ integration despite its possible benefits for international travellers and cross-border payments.

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