India in Talks to Link UPI with Alipay+ for Cross-Border Payments
India is in discussions with Singapore-based Ant International to integrate its Alipay+ network with India’s Unified Payments Interface (UPI), potentially enabling seamless cross-border digital payments for Indian travelers. Government and central bank officials are evaluating the proposal, which would allow Indian users to pay overseas merchants connected to Alipay+ using UPI. The move is aimed at reducing friction and costs in international transactions while expanding the global footprint of India’s fast-growing digital payments ecosystem.
Alipay+, operated independently but originally founded by China’s Ant Group, connects around 1.8 billion user accounts with more than 150 million merchants across over 100 markets. Meanwhile, UPI — developed by the National Payments Corporation of India and regulated by the Reserve Bank of India — processes nearly 18 billion transactions monthly, making it one of the world’s most active real-time payment systems. Indian authorities have been pushing to internationalize UPI to support travelers and the diaspora, enabling payments in rupees abroad and lowering dependence on traditional card networks.
However, security and geopolitical sensitivities remain central to the decision. Officials noted concerns linked to Alipay’s Chinese roots, particularly regarding digital infrastructure security and data governance. India tightened scrutiny of Chinese-linked investments following the 2020 border standoff, affecting deals such as BYD’s proposed investment in India. Still, ties have cautiously improved, with Prime Minister Narendra Modi and President Xi Jinping engaging in diplomatic outreach, and recent steps including the resumption of direct flights and eased visa norms signaling a gradual thaw in relations.
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