India’s UPI Could Soon Be Linked with China’s Alipay+, Boosting Global Payments

India’s Unified Payments Interface (UPI) may soon be integrated with China’s Alipay+, allowing Indian tourists to make payments in countries where Alipay+ operates. Currently, Alipay+ is available in over 100 countries, and this integration could significantly strengthen UPI’s global reach.

UPI-Alipay+ Integration Talks

The Indian government and the Reserve Bank of India (RBI) are reportedly in discussions with Alipay+, a product of the Chinese fintech giant Ant Group, to link UPI with the platform. According to Reuters, if the talks succeed, it will make digital payments in China and other countries much easier for Indian travelers.

This collaboration could also help restore trade and diplomatic ties between India and China following the 2020 border tensions.

Benefits for Indian Users

The primary advantage of this integration would be for Indian travelers abroad. Currently, tourists often rely on currency exchange or high-fee international cards for payments. With UPI linked to Alipay+, Indians would be able to make direct payments in local currencies using UPI wherever Alipay+ is accepted.

To enable this, users would simply need to activate UPI Global within their UPI app, a straightforward process. This step could potentially make India’s UPI a globally powerful payment system, enabling seamless transactions in Indian Rupees abroad.

Security and Data Concerns

While the integration seems promising, it raises security and data privacy concerns. Since Alipay+ is a Chinese product, the Indian government is being cautious about the protection of citizens’ data and digital infrastructure.

Sources indicate that before final approval, comprehensive security audits will be conducted to ensure that the integration does not compromise Indian digital systems. Strict regulations on Chinese investments, imposed since 2020, must also be adhered to before the project can proceed.

A Sign of Improving India-China Relations

The talks come at a time when India-China relations are gradually improving. Following meetings between PM Modi and Chinese President Xi Jinping, both countries have taken steps to reopen direct commercial flights and relax visa regulations for professionals.

Linking UPI with Alipay+ is seen as another step toward strengthening economic ties and easing cross-border financial transactions.

This integration, if successful, could mark a significant milestone for India’s UPI, taking it from a domestic payment system to a globally recognized digital payment platform.