UPI to Become India’s Digital Soft Power

Since the launch of the UPI service in India in 2016, payments have become hassle-free. In less than 10 years, this unassuming digital framework has gone global from Bhutan to the UAE, from France to Singapore. This isn’t just about scanning codes or tapping screens, but more about India offering its digital backbone to the world and now positioning digital finance as geopolitical currency.

The concept of UPI as soft power represents India’s digital leadership for global influence building. UPI now handles more than 13 billion monthly transactions and has extended to foreign countries. Let’s dive into UPI’s journey - from its Indian roots to becoming a global fintech model shaping digital diplomacy.

The UPI Story: A Brief Origin

Before earning worldwide credibility, UPI started as a game-changing solution in India’s digital journey. Its low cost, simplicity and broad reach expanded its footprint countrywide. Post-COVID, UPI's adoption soared, becoming the nation’s top payment method. Today, UPI has become a global fintech benchmark.

2016: Launch Year

National Payments Corporation of India (NPCI) introduces UPI to simplify and digitise peer-to-peer banking.

2017:  Major App Integration

UPI enters the daily life of smartphone users with BHIM, PhonePe and Google Pay onboard.

2018-2019: Widespread Merchant Adoption

Local vendors to e-commerce giants begin accepting UPI. Retail adoption explodes.

2020: COVID-Driven Surge

COVID-19 accelerates the digital shift. UPI usage multiplies due to contactless preferences.

2021-2023: Digital Framework Strengthens

Driven by Aadhaar, Jan Dhan and mobile networks, UPI scales to rural India.

2023-2025: International Expansion

Countries like Singapore, UAE, France, and Bhutan adopt or collaborate on UPI frameworks.

2025: Over 13 Billion Transactions Monthly

UPI becomes India’s most-used digital payment method due to being a trusted digital payment system and speed.

From Domestic Success to Global Expansion of UPI

India’s UPI goes international beyond just transactions; it stands as a symbol of trust and digital inclusion. From Southeast Asia to the Middle East and Europe, countries are adopting UPI systems. Here’s a quick look at where UPI is already functioning and continuing to grow.

Singapore

• India’s UPI is now interoperable with Singapore’s PayNow system.
• UPI enables instant international payments between India and Singapore.
• NPCI, RBI and MAS (Monetary Authority of Singapore) came together in a joint initiative to enable these systems.

UAE (United Arab Emirates)

• UPI is enabled by teaming up with Mashreq Bank’s NEOPAY.
• Supports Indian visitors and local citizens to pay via UPI across various stores.

France

• UPI integration at the Eiffel Tower, spreading to major tourism hubs.
• Tie-up with Lyra, a French payment service provider.
• Makes digital payments more effortless for Indian travellers in France.

Bhutan

• The first neighbouring country to adopt UPI.
• Bhutan’s RMA (Royal Monetary Authority) enabled UPI acceptance.
• Empowers BHIM UPI for seamless QR-based payments.

Nepal

• First non-Indian country to integrate UPI as a digital transaction system.
• NPCI global collaboration with Gateway Payments Service and Manam Infotech.
• Supports regional UPI-based digital payments in Nepal.

Sri Lanka & Mauritius

• Launched UPI services in February 2024.
• Enables person-to-person and merchant payments via QR codes.
• First step toward building digital public infrastructure with India’s support.

Oman (In Progress)

• Deliberate partnership initiated by NPCI International and the Central Bank of Oman.
• The goal is to ensure effortless UPI-based money transfers for Indians living in Oman.

Expanding Outreach: Africa & Latin America

As UPI expands beyond Asia, India is deepening digital ties with Africa and Latin America. From boosting remittances to offering tech partnerships, India’s digital public infrastructure, led by UPI, is becoming a key bridge to boost financial inclusion across borders, tech diplomacy and cross-border innovation. This section explores how India’s fintech model is shaping new collaborations across continents.

Africa

NPCI and African bank alliance

• India is in talks with multiple African nations (e.g. Kenya, Nigeria, Rwanda) to introduce UPI infrastructure.
• The Primary agenda is extending financial connectivity to improve fund transfer speed, and localised platforms like M-Pesa.

Digital Public Infrastructure (DPI) Diplomacy

• UPI acts as a framework for creating sovereign, collaboratively built payment networks.
• Via the G20 and Global South forums, India offers DPI support to African economies.

UPI Integration Pilots

• Nations like Kenya and Namibia have shown interest in launching UPI-based systems with India’s technical guidance.

Remittance Market Focus

• UPI may significantly reduce international money transfer charges for the African diaspora, making it a strategic tool for building stronger ties between nations.

Latin America

Initial Engagements with Brazil & Mexico

• UPI collaboration discussions initiated by India with Latin American fintech authorities.
• Brazil’s PIX system is considered a potential interoperability candidate with UPI.

Interest in Interoperability & Open Source Framework

• Countries like Mexico, Colombia, and Chile are exploring India's Digital Public Infrastructure model for secure, scalable payment systems.

India-LAC Fintech Dialogues

• During high-level summits and G20 engagements, UPI is discussed as a replicable success story for low-cost, inclusive payments.

Tech Diplomacy: Exporting India Stack

• India’s offer to share the India Stack (UPI, Aadhaar, etc.) with Latin American countries positions UPI as a tool for digital sovereignty and fintech modernisation.

UPI Powers India’s Global Reach

Driven by self-developed digital solutions, UPI has evolved into a bridge connecting global economies. Going further than just enabling payments, UPI reflects India’s position as a trusted tech partner who delivers trust, transparency, and scalable digital solutions.

Nations across Asia, Europe, Africa, and Latin America are deploying UPI-based frameworks. By exporting code over commodities, India is forging partnerships through the open-source infrastructure of UPI as a symbol of digital sovereignty and a model for global Digital Public Infrastructure (DPI).