Complete Guide to Making UPI Payments for Foreigners in India

The Unified Payments Interface (UPI) has revolutionized the way people make payments in India. This mobile-based system offers a fast, secure, and convenient way to transfer funds and make purchases, eliminating the need for cash or cards. While initially designed for Indian residents, UPI is now becoming increasingly accessible to foreigners, including NRIs and tourists. This article provides a comprehensive guide to UPI for foreigners, covering everything from how it works to the best UPI apps and wallets available.

We'll also introduce you to Wise - which is not a UPI wallet, but does offer a convenient Indian Rupee travel card to users in supported countries, and offers convenient way to transfer money to UPI or bank accounts in India from abroad.

What is UPI and How Does it Work?

UPI is a mobile-based payment system developed by the National Payments Corporation of India (NPCI). It allows users to link multiple bank accounts to a single mobile application and make instant fund transfers using a Virtual Payment Address (VPA) or a mobile number. UPI transactions are processed in real-time, ensuring that funds are instantly debited from the sender's account and credited to the recipient's account .  

To use UPI, you need to download a UPI-enabled app and link your bank account to it. Once you have set up your UPI profile, you can send and receive money by simply entering the recipient's VPA or mobile number. You can also use UPI to pay merchants by scanning a QR code at the point of sale.

Can Foreigners Use UPI in India?

Yes, foreigners can use UPI in India. Recent initiatives by NPCI and leading banks have made it possible for non-residents, including NRIs and international tourists, to access UPI services.

UPI for NRIs

NRIs from several countries can link their international mobile numbers to their NRE or NRO accounts and use UPI for various transactions. They can send money to other UPI users, scan UPI QR codes to make payments, and even send money to Indian bank accounts.  

UPI for Foreign Tourists

Foreign tourists can utilize UPI through specific wallets designed for international visitors, such as UPI One World. These wallets allow tourists to load funds using their international cards and use UPI for payments across India . To get started, tourists need to complete a full KYC process, providing their passport and visa details, at authorized PPI issuers like airports, hotels, or designated money exchange locations.  

How to Use UPI as a Foreigner in India

Here's a step-by-step guide on how foreigners can use UPI in India:

For NRIs:

1. Link your international mobile number to your NRE/NRO account: Contact your bank to link your international mobile number to your NRE or NRO account. This is a crucial step as UPI apps utilize mobile numbers for verification purposes.
2. Download a UPI-compatible app: Download a UPI-enabled app, such as BHIM, Google Pay, PhonePe, Paytm, or your bank's mobile banking app.
3. Follow the onboarding instructions: Complete the registration process on the app, which may involve verifying your mobile number and setting up a UPI PIN.
4. Create a unique UPI ID: This is a virtual payment address that you can use to send and receive money. It usually follows the format yourname@bankname .  

For Foreign Tourists:

• Download a UPI One World app: Download a UPI One World app like CheQ, IDFC First Bank, or others listed on the NPCI website.
• Complete KYC: Complete the KYC process by providing your passport and visa details at an authorized PPI issuer.
• Load funds: Load funds into your UPI One World wallet using your international debit or credit card.

Once you have set up your UPI, you can use it to:

• Send money to other UPI users: Enter the recipient's VPA or mobile number to send money instantly.
• Scan UPI QR codes to make payments: Scan the QR code displayed at merchant locations to make payments.
• Send money to Indian bank accounts: You can also use UPI to transfer funds to any Indian bank account.

UPI Apps and Wallets for Foreigners

Here are some of the popular UPI apps and wallets for foreigners in India:

• Cheq UPI: Cheq is a UPI payments app specifically designed for NRIs and foreign citizens. It allows users to pay digitally at over 55 million merchants across India, offering a cost-effective alternative to traditional methods or using credit/debit cards with high foreign transaction fees.
• ICICI Bank iMobile Pay: ICICI Bank allows NRIs to link their international mobile numbers to their Indian bank accounts and use UPI through their iMobile Pay app.

Alternative Payment Methods for Foreigners in India

Besides UPI, foreigners can explore these alternative payment methods in India:

• Cash is widely accepted, especially in smaller towns and local markets. Before withdrawing from ATMs in India, check out our guide to avoiding foreign ATM Fees when traveling abroad 👉
• International credit, debit, and forex cards are accepted at most hotels, restaurants, and larger stores. However, some merchants may add surcharges for card payments. In addition, you'll need to be mindful of any foreign transaction fees and markups on mid-market rates on currency conversion.

We would like to introduce you to Wise Card that offers you foreign currency transactions without any marksups on the mid-market rates.

Meet Wise: Your Smart Travel Companion for India

Planning a trip to India? Wise offers a convenient travel card and money transfer services that make managing your finances abroad a breeze. Wise card is not available for residents in India, but for those based in supported countries, the Wise card lets you spend like a local on your travels to 150+ countries — including India.

Guide to using Wise Card in India 👉

Here's why Wise is a great choice for your Indian adventure:

• Excellent exchange rates: Always get the mid-market exchange rate – the same one you usually see on Google – so you get the most out of your money.
• Low, transparent fees: Say goodbye to hidden charges and hefty markups. Wise keeps its fees low and transparent, so you know exactly what you're paying.
• Convenient card and app: Use your Wise card to swipe like a local in supported countries. Manage your money, track spending, and even freeze your card if needed, all through the Wise app .
• Cash withdrawals: Easily withdraw cash from supported ATMs in India with low, transparent fees. But be mindful that ATM providers may charge their own cash withdrawal fees.
• International transfers: Send money to Indian UPI and bank accounts from abroad with the same mid-market exchange rates and low fees.

Get started with Wise 🚀

While Wise isn't a UPI wallet and doesn't support scanning UPI codes for real-time payments, it's a fantastic alternative for managing your travel money and sending money to India.