Digital payments platform PhonePe on Tuesday said it has launched support for cross-border payments through unified payments interface (UPI), allowing Indian travellers to instantly pay foreign merchants using its network.
The current launch supports UPI payments at all international merchant outlets in UAE, Singapore, Mauritius, Nepal and Bhutan that have a local QR code, PhonePe said in a statement.
This year, NPCI (National Payments Corporation of India) in collaboration with NIPL (NPCI International Payments Limited) plans to roll out UPI International to more countries. The organisation is also working on bringing better merchant acceptance in the international regions where this feature is currently live.
With the newly launched feature, Indian customers can now use their bank account to pay using UPI. Users will be able to make payments in foreign currency directly from their banks in the same way they do transactions with their international debit cards.
PhonePe users can activate their UPI-linked bank account for UPI international at the merchant location, or prior to their international trip, via the PhonePe App. Customers will need to enter their UPI pin in order to activate the service, the statement added.
“Over the past six years, all over India we have been lucky to experience the UPI payments revolution transforming our daily lives. 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 gamechanger and will completely transform the way Indians traveling overseas pay at merchant outlets abroad,” said Rahul Chari, chief technology officer and cofounder of PhonePe.
In terms of monthly UPI transaction volume, PhonePe had a 47% market share in December 2022, according to adata from the National Payments Corp of India (NPCI). While, its rivals rivals Google Pay and Paytm had a market share of 34% and 15%, respectively.
The company has also recently raised $350 million from US private equity firm General Atlantic at a pre-money valuation of $12 billion, becoming the latest decacorn as well as the most valuable homegrown fintech startup.
The investment was the first tranche of PhonePe’s latest fundraising that could see marquee global and Indian investors pour in up to $1 billion in the digital payments platform. Existing investors, including Tiger Global Management, Qatar Investment Authority and Microsoft, are also likely to invest in the company.
