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India’s digital payment infrastructure is making inroads into the United Arab Emirates (UAE), as the country’s leading fintech organisation advances plans to integrate its Unified Payments Interface (UPI) across the Gulf state’s retail and hospitality sectors.
NPCI International Payments Limited, the overseas arm of India’s National Payments Corporation, has detailed its progress in expanding UPI acceptance throughout the UAE, marking a strategic deepening of financial ties between the two economies.
Cross-border payments have traditionally relied on correspondent banking networks that process transactions through multiple intermediaries, often requiring several days for settlement. Real-time payment systems like UPI offer an alternative approach, providing immediate settlement with transparent pricing structures.
UPI processes over 18 billion transactions monthly and operates as a real-time payment system that enables instant fund transfers between bank accounts through mobile applications, according to NPCI International. The platform’s international expansion represents part of a broader trend towards modernising cross-border payment infrastructure.
The UAE represents a significant market for Indian payment services. More than seven million Indians visit annually, making them the country’s largest group of international visitors according to India’s Ministry of Tourism, thereby creating a substantial user base for payment solutions that can bridge the two financial systems.
NPCI International has established partnerships with UAE financial institutions including NeoPay (Mashreq), Network International, and Magnati to enable QR code-based UPI acceptance across merchant networks. Major retailers such as Dubai Duty Free and Lulu Hypermarket have integrated the system, allowing customers to pay directly from their Indian bank accounts.
“Our expansion in the UAE is a testament to the growing global confidence in India’s digital payment innovations,” said Ritesh Shukla, managing director and chief executive of NPCI International.
The regulatory environment in the UAE supports digital payment innovation, with Dubai’s government targeting 90% digital transactions by 2026 as part of its cashless economy vision. This aligns with the expansion of alternative payment platforms in the region.
For merchants, UPI acceptance provides access to a digitally engaged customer base whilst potentially reducing cash handling costs. The system’s architecture incorporates regulatory safeguards including transaction limits and two-factor authentication mandated by the Reserve Bank of India.
