All you need to know about UPI’s entry in France

“India and France have agreed to use UPI in France. In the coming days, it will begin from the Eiffel Tower, which means Indian tourists will now be able to pay in rupees," PM Modi said in his address.

Apart from France, the UPI system, developed by the National Payments Corporation of India (NPCI), is available for international use in several countries like Bhutan, Singapore, UAE, Nepal and now France. The NPCI has signed Memorandums of Understanding (MoUs) with several countries to adopt the UPI interface for digital payments. Several other countries have shown interest in adopting UPI, including Japan, Bahrain, Australia, Canada, Hong Kong, Qatar, and the United States.

NRIs can access UPI services using their international mobile numbers, eliminating the need for an Indian mobile number. The UPI system is available through non-resident external (NRE) and non-resident ordinary (NRO) accounts.

“International use of UPI will help reduce the dependence of India on Visa/ Mastercard/ American Express for making payments while travelling abroad. Works out simpler for the traveller apart from being more secure. The number of Acceptance points would certainly be an issue initially, but all new systems begin this way only. Though forex conversion (taking place at the back end) cannot be ruled out, the advantage will be in terms of lower transaction fee and simplified grievance redressed process (should there be any transaction failure),” said A.P. Hota, former MD & CEO of National Payments Corporation of India (NPCI).

Indian tourists can use their Indian bank accounts linked with UPI to make payments in these select international countries including France. This eliminates the need to carry cash or exchange currency, making transactions more convenient.

Also, UPI can be accessed using international mobile numbers in select countries, allowing non-resident Indians to transact using UPI without an Indian mobile number. This makes it easier for NRIs to use UPI services while abroad. On the cost front, using UPI for transactions abroad can be cost-effective as it eliminates the need for currency exchange or international transaction fees.

Experts believe that the implementation of UPI has resulted in a significant socioeconomic change in the nation and has been key in the digital payments adoption in the country.

“It is inspiring to witness other countries, including France, embracing India's digital payment innovation. Prior to France, the UPI system has already been adopted by UAE, Nepal, and Bhutan. This development will contribute to enhancing bilateral trade and conserving foreign exchange reserves, as retail payments in France will now be conducted in Indian rupees,” said Ram Rastogi, Digital Payments Strategist and Chairman of the Fintech Association for Consumer Empowerment.

“This will make it easier for tourists while travelling and at the same time, it will function as a boon for Indian students in France, since it will make it easier for them to transact. This is a novel step by the government to establish the internationality of our rupees since tourists will have the convenience of paying in rupees,” he added.

Experts believe that the expansion of UPI to international markets will provide convenience and ease of payment for Indian tourists and expatriate populations in these countries. There are fees associated with using UPI for payments in Europe.

The payments made through UPI in Europe will be charged in the local currency and not in Indian rupees (INR), thus prompting a currency conversion charge levied by the banks. The exact fees may vary depending on the bank and the specific transaction. ​