PhonePe, the most widely used UPI app in India, has introduced a new feature via 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 pay foreign merchants using UPI.
PhonePe says the feature can be used in all international merchant outlets in the UAE, Singapore, Mauritius, Nepal, and Bhutan that have a local QR code. The company plans to extend the facility to many more countries.
Read More: RBI to Extend UPI Facility for Retail Payments to Inbound Travellers in India
Rahul Chari, co-founder and CTO of PhonePe, in a statement said, “UPI international is the first major step in letting the rest of the world experience UPI, too. I am sure this launch will prove to be a game-changer and will completely transform the way Indians traveling overseas pay at merchant outlets abroad.”
The feature was developed in collaboration with NPCI International Payments Limited (NIPL). Ritesh Shukla, NIPL CEO, had in July last year conveyed his plans to extend UPI services to the overseas market, saying that it can be a home-grown alternative to SWIFT- a Belgium-based cross-border payment system operator.
All you need to know about PhonePe’s new feature:
Under this facility, Indian banks will deduct foreign currency from the user’s bank account, and the receiver will receive the payment in their local currency. The process is similar to international debit card transactions.
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How to activate the facility?
The feature can be activated on the PhonePe app. It can either be done at the merchant location or before the trip. This facility eliminates the need for a credit card or forex card for making payments outside India.
Though the app is available for download on both iOS and Android however the new feature might take some time before it is available on users’ devices as the facility is still rolling out.
