UPI Alipay: The Indian government is reportedly considering taking a big step towards making digital payments easier globally. In this regard, talks are going on with China-based but Singapore-based fintech company Ant International so that its platform Alipay+ can be linked to India’s Unified Payments Interface i.e. UPI. If this plan comes true then Indian users will be able to make payments abroad also through UPI.
There will be great convenience for foreign travelers
Indian tourists can get the biggest benefit from this possible partnership. Indian travelers will be able to make payments directly through UPI at shops and service providers in countries connected to Alipay+. With this, there will be neither the hassle of converting foreign currency nor the burden of expensive international transaction charges.
Alipay+’s vast global network
According to the company’s website, Alipay+ connects about 1.8 billion user accounts and more than 150 million merchants worldwide. Its network extends from Asia to Europe, Middle East and Latin America. In such a situation, linking UPI with it can give global recognition to India’s digital payment system.
Strength of UPI in India
UPI has already become the backbone of digital payments within the country. According to Reuters report, about 18 billion transactions are being done through it every month. The government and the Reserve Bank have long wanted the use of UPI to expand beyond borders so that Indian travelers and NRIs can make payments in Indian rupees and make cross-border transactions easier. Security and geopolitical concerns
Signs of softening in relations with China
In the last few years, due to the strain in relations between India and China, the exchange of capital, technology and talent had slowed down. Many big investment proposals were also stuck. But since last year, signs of gradual improvement in relations between the two countries have started showing. Prime Minister Narendra Modi’s visit to China after a long gap, resumption of direct flights and relaxation in visa rules point in this direction.
final decision still pending
At present this conversation is in the initial stages and has not been officially confirmed. No statement has come from the Finance Ministry, RBI and NPCI either. It is clear that the final decision to link Alipay+ with UPI will be taken keeping in mind the security and national interests. If the green signal is given, it can prove to be a historic step for India’s digital payment system.
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