A recent incident at Singapore's Changi Airport has brought the reliability of India's Unified Payments Interface (UPI) for overseas transactions into sharp focus. Nikhil George, an Indian tourist, attempted to use UPI at a store within the airport, only to be met with a payment failure and a cashier's pre-warning that UPI "almost never works" there.
Inconsistent Acceptance Abroad
George's experience, shared widely online, highlighted a critical discrepancy. While India has actively linked UPI with international payment systems like Singapore’s PayNow and enabled cross-border merchant payments in countries such as France, the UAE, and Mauritius, practical acceptance remains uneven. Officials have previously stated that Indians can use UPI at participating merchants in popular destinations, including Changi Airport itself.
However, many users report mixed results. Transactions can fail due to various factors, including issues with merchant-side setup, limitations within the payment apps themselves, or foreign-exchange rate complications. The message George received, "Could not get conversion rate. Try scanning again," points to a potential currency exchange hurdle.
Hidden Costs and User Feedback
Beyond acceptance issues, travelers using UPI overseas may also encounter additional costs. Banks can levy foreign-exchange markups and processing fees, potentially making the final transaction amount higher than anticipated. While NPCI has clarified that recent domestic MDR (Merchant Discount Rate) changes do not apply to international UPI transactions, standard foreign-exchange charges are still applicable.
NPCI International Payments Limited acknowledged George's post, offering assistance via direct message. Social media users have since shared a spectrum of experiences. Some reported smooth transactions in various countries, while others echoed George's frustration. PhonePe was mentioned by some as a more successful option for international UPI payments. A user noted that at specific locations like Mustafa in Singapore's Little India, UPI often works, sometimes even with discounts that help offset exchange rate markups.
Conversely, concerns about unfavorable exchange rates were frequently raised, with one user commenting, "Even if it works, the exchange rate kills it."
Traveler's Prudence Advised
The collective sentiment among frequent travelers is clear: while UPI offers a convenient option, it should not be treated as a sole payment method when abroad. Many now advise carrying traditional payment cards as a reliable backup. The consensus is that despite UPI's impressive domestic success and international ambitions, its overseas functionality is still not a universally seamless "plug-and-play" solution for every Indian traveler.