India, Indonesia to integrate UPI payment systems to boost cross-border transactions

The initiative is expected to make digital transactions easier for travellers, businesses and Indian expatriates, while strengthening economic ties through faster, more secure payment systems.

UPI integration announced during bilateral talks

Addressing a joint press statement with President Prabowo, Prime Minister Modi said that India's UPI will be linked with Indonesia's payment ecosystem, making it easier to conduct business and travel between the two nations.

Union Minister for Electronics and Information Technology Ashwini Vaishnaw later shared details of the announcement, highlighting it as another milestone in India's expanding digital public infrastructure.

President Prabowo also confirmed that both countries will work towards establishing cross-border QR payment linkages, allowing users to make seamless digital payments by simply scanning QR codes in either country.

Wider cooperation across multiple sectors

Apart from digital payments, the two leaders reviewed cooperation in several strategic sectors, including:

• Trade and investment

• Financial technology (FinTech)

• Digital Public Infrastructure (DPI)

• Defence and security

• Energy

• Healthcare

• Space technology

• Critical minerals

The two countries also welcomed the launch of Indonesia Open Network (ION), a digital commerce platform inspired by India's Open Network for Digital Commerce (ONDC). The move reflects growing collaboration in building interoperable digital public infrastructure.

How travellers and businesses will benefit

Once operational, the UPI integration is expected to:

• Enable seamless cross-border QR code payments

• Reduce dependence on cash and currency exchange

• Simplify payments for Indian tourists visiting Indonesia and Indonesian travellers visiting India

• Help businesses receive payments faster

• Lower transaction costs for merchants

• Improve convenience for Indian migrants and professionals living in Indonesia

• Support cross-border e-commerce and digital trade

The initiative is also expected to enhance tourism by enabling visitors to pay directly via UPI-enabled applications, reducing reliance on cash or international cards.

India's global UPI expansion continues

The partnership with Indonesia is part of India's broader strategy to expand UPI globally.

UPI is already operational in several countries, including:

• Singapore

• United Arab Emirates (UAE)

• Bhutan

• Nepal

• Sri Lanka

• France

• Mauritius

• Qatar

• Cambodia

• Greece

In many of these markets, Indian users can make merchant payments using UPI-enabled apps, while some also support person-to-person money transfers.

According to the Ministry of Electronics and Information Technology, India has signed Digital Public Infrastructure (DPI) cooperation agreements with 23 countries, reflecting growing international interest in India's digital payment ecosystem.

Strengthening India's digital leadership

The planned UPI integration with Indonesia is expected to deepen digital economic cooperation between the two nations while reinforcing India's position as a global leader in real-time digital payments.

As more countries adopt UPI and India's digital public infrastructure, cross-border transactions are expected to become faster, cheaper and more accessible, benefiting businesses, tourists and consumers alike while supporting India's vision of making UPI a globally accepted payment platform.