PhonePe, one of India's leading digital payment platforms, has become one of the first to support UPI international payments1.
Yes! When activated for international use, you can use PhonePe to make QR code payments from your Indian bank account to select merchants abroad. Here's a guide to using PhonePe to make international payments when traveling abroad.
| 📝 Guide to International Transfers with PhonePe |
|---|
PhonePe International Transfers is a way to make UPI payments to select businesses abroad2. This enables PhonePe account holders from India to use their PhonePe app to scan QR codes and transfer payments from their bank account when they travel outside India.
Currently, UPI international payments through PhonePe is only supported at selected businesses in Bhutan, Singapore, Nepal, UAE, and Mauritius2.
To use UPI International, you must have a supported bank account connected to PhonePe3. Here is the list of banks supporting UPI International 👉.
The activation process for PhonePe International Transfers is straightforward. Here's a step-by-step guide:
UPI International through PhonePe is a new feature that is being gradually rolled out. So you may not see the option to activate UPI International till this feature is available for your account4.
UPI international will be deactivated automatically after 90 days from the activation date, but you can also deactivate it manually.
While UPI transfers within India are generally free, the convenience of international payments through UPI comes at a cost. When you use PhonePe for international payments, you essentially make an international transfer from your bank.
So while PhonePe itself does not charge any fee, the costs come from the international transfers fees associated with your bank5. This fee varies based on your bank, and an important expense to consider before using UPI internationally.
In addition to the international transfer fee charged by your bank, there is another hidden expense with international transfers from a bank: the markup on the exchange rate when converting INR to foreign currency.
The banks publish their own exchange rates that are much higher than the mid-market rate you see on Google — and the one used by Wise for international transfers.
So, while the PhonePe app can be a convenient alternative to making payments abroad, the international transfer fee and currency exchange rate can add up to the fees incurred.
Once you have understood the costs involved and activated UPI international on your PhonePe, here's how to pay businesses when you travel abroad from India6.
PhonePe can be used to make a payment to international businesses by scanning a QR code, as explained above. However, the PhonePe international transfer facility is not intended to be used for outward remittances. So you will need to look into alternatives for sending money abroad. Make sure to check for any hidden fees and markups on the exchange rate when you compare providers!
We cover the popular options in our guide to sending money to a foreign bank account from India 👉
You can receive money transfers from abroad to your PhonePe account as long as the sender uses a service that supports international transfers to UPI accounts in India. One such service is Wise.
Meet Wise: A convenient option to send money to India
Wise is a convenient, easy-to-use app that supports international transfers to UPI id and bank accounts in India, with one low transfer fee and the mid-market currency exchange rate — which is the same as the one you see on Google.
And if you're living abroad, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.
PhonePe also offers a payment gateway for businesses called PhonePe PG to receive payments from major card providers.
For a convenient alternative for receiving international transfers from abroad, check out Wise Business Account.
Wise Business Account provides businesses and freelancers in India with a convenient alternative to get paid from abroad. When you sign up for Wise Business Account, you get local account details in 8 foreign currencies. This means your international customers can pay you with a local transfer in those currencies!
Wise converts the received amount to INR at the mid-market rate and transfers it to your bank account in India - plus, you get the FIRC in your inbox. All this convenience comes with a transparent upfront fee without any hidden markups.
Get Started with Wise Business account 🚀
Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.
Sources used in this article:
Sources verified on 6 November 2023.
Cover photo by Annie Spratt on Unsplash.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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