Digital convenience: How UPI is winning over foreign tourists in India – Industry News

– By Manish Kumar Shukla

In a sequential spur to innovation, India – the nation has bestowed the world with historic upheavals in the market. It has once again managed to dazzle the world of banking and finance with another masterpiece- The Unified Payment Interface (UPI). In 2016, the disruptive technology was invented, opening doors to a much-awaited digital transformation, thereby changing India’s financial landscape from cash-centric to digitally powered transactions. 

Today, India stands unparalleled as the globally acknowledged player in the digital payment economy, as UPI continues to captivate audiences with its secure, swift, flexible, seamless and convenient features. UPI’s digital public infrastructure supported by NPCI has provided a delta 4  experience to users and merchants both which has led to the massive adoption and has made UPI the most favored payment mode in India. In the fiscal year 2023, UPI expedited transactions worth $1.7 trillion, out of which merchant transactions accounted for $380 billion. 

Furthermore, the monthly transaction count keeps rising, establishing unparalleled records in both worth and quantity, with the aim of reaching 1 billion daily transactions.

India’s indigenous UPI solution has emerged as a global star, aiding in conquering international shores. With countries worldwide including France, United Kingdom, Singapore, Japan, UAE, Nepal and many more expressing their intent to embrace UPI for their digital payment ecosystem, India has become a leader in real-time payments infrastructure. But the story doesn’t just end there, it’s just the beginning. 

UPI and Foreign Tourists

From the backwaters of Kerala to the snow-capped mountains of Kashmir, there’s a lot about India that excites foreign tourists and facilitates the Indian tourism industry. But even in the digital era, foreign tourists are stuck making payments for all these experiences in cash, especially in remote areas due to the inaccessibility of ATMs and in such cases carrying a large volume of cash can be risky. Taking into consideration the struggle faced by foreign tourists while making transactions, India keeping in line with its ‘Atithi Devo Bhava’ ideology has permitted all inbound travellers to India to use UPI for all their merchant payments, making India a desirable tourist destination for all travellers.

Cardless Transactions

The integration of cards with UPI marks a revolutionary step in the digital payment ecosystem, providing foreign tourists with the best of both worlds. It elevates the foreign tourist experience to another level, eliminating the need for carrying physical bank cards, especially in remote areas where the availability of POS terminals is scarce. Additionally, it enhances security by putting the card data in the user’s hand, mitigating risks associated with card skimming at POS terminals. Preventing physical bank card loss, UPI empowers foreign tourist travel experience with enhanced payment options which bolsters transaction security. 

Cash-free Economy

While some establishments in metropolitan and other bigger cities may accept international cards, in most of the smaller establishments as well as for daily expenses of a trifle amount, foreign tourists are forced to acquire local currency endangering their safety and security. On the contrary, QR code powered UPI eliminates the vulnerability of threats like robbery, counterfeit currency being passed on, issues related to loose change of money and unfavourable currency exchange rates with exorbitant fee. Developing an online payment ecosystem prioritises seamless cashless transactions, propelling India towards financial inclusion. 

Minimised Payment Scams

India being a secular nation with more than 20 languages widely spoken, it is possible that a larger chunk of the population may not be fluent in English. The language barrier makes it difficult for foreign tourists to haggle with street vendors, making them prone to overcharging scams. UPI streamlines and optimises the digital payment expense for foreign tourists, eliminating their vulnerability to scams with its simplistic QR-code scan and payment gateway technology. The UPI digital payment gateway also reduces unnecessary OTP verification frauds, ensuring the delivery of a smoother and wholesome journey. 

RBI- Empowering Foreign Tourists

RBI has broadened possibilities for foreign travellers in India, enabling seamless payments across all merchant outlets accepting QR-based UPI payments. With the augment of G-20, foreign tourists from G-20 countries were offered wallets which were accessible at selected Indian airports, providing them with the opportunity to experience digital India. UPI convenience is bound to increase the appeal of India as the go-to travel destination. 

Road Ahead 

Since UPI has become the norm today, be it- a rickshaw puller, fruit vendor or cab driver, everyone has been touched by the pangs of the UPI revolution. UPI is a leapfrogged advancement in the Indian digital financial landscape, demonstrating to the world the power of real-time transactions, driving high commerce from foreign travellers. UPI is continuing to reshape India’s payment landscape and is projected to continue making strides in boosting financial inclusion and accelerating the nation’s progress to a cashless economy.              

(Manish Kumar Shukla is the co-founder & CTO at CheqUPI.)

(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.)