Exclusive: India in Talks to Integrate Alipay+ with UPI for Cross-Border Payments
By Nikunj Ohri, Reuters
NEW DELHI, Feb 2 (Reuters) — India is engaged in advanced discussions with Singapore-based Ant International to connect its domestic instant payment system, the Unified Payments Interface (UPI), with the Alipay+ network, two senior government officials familiar with the matter told Reuters. The potential integration aims to facilitate seamless cross-border transactions for millions of Indian nationals traveling abroad.
If finalized, the agreement would allow Indian tourists and the diaspora to use their preferred UPI apps at overseas merchants already partnered with Alipay+, which spans over 100 markets. This would mark a significant step in India's strategy to internationalize the rupee and reduce reliance on traditional currency exchange and card networks for its citizens abroad.
The talks, involving officials from India's finance ministry, the Reserve Bank of India (RBI), and Ant International, are seen by analysts as part of a cautious but notable warming in economic engagement between New Delhi and Beijing. Ant International, while founded by China's Ant Group, operates as an independent entity headquartered in Singapore.
"This is fundamentally about user convenience and expanding the reach of India's digital public infrastructure," said one of the officials, who requested anonymity due to the sensitivity of the negotiations. "However, a final approval will be contingent upon a comprehensive review of all data security and geopolitical considerations."
The Alipay+ platform currently links approximately 1.8 billion consumer accounts to more than 150 million merchants worldwide. India's UPI, meanwhile, has achieved staggering domestic adoption, processing nearly 18 billion transactions monthly. Bridging these two ecosystems could create one of the world's largest interoperable digital payment corridors.
The discussions occur against a complex backdrop. Following a deadly border clash in 2020, India imposed stringent scrutiny on Chinese investments and banned hundreds of Chinese-linked apps. While those security-driven restrictions remain largely in place, there has been a recent, measured diplomatic thaw, including resumed direct flights and high-level political dialogue.
Officials from India's finance ministry, the RBI, and the National Payments Corporation of India (NPCI) did not immediately respond to requests for comment. Ant International also declined to comment.
Analyst & Public Reaction:
Priya Sharma, Fintech Analyst at Mumbai-based Bharat Insights: "This is a pragmatic move. The UPI's success story is now looking for global chapters. Partnering with an established network like Alipay+ offers a faster route to international relevance for Indian travelers, bypassing the need to build countless bilateral agreements."
Rajeev Menon, Small Business Owner in Delhi: "As someone who travels to Southeast Asia frequently, this would be a game-changer. Not having to worry about currency exchange or carrying multiple cards would make life so much easier. It's a welcome use of our technology."
Colonel (Retd.) Arjun Singh, Security Policy Commentator: "This is a Trojan horse wrapped in convenience. We are contemplating handing over transaction data of our citizens to a platform with ultimate roots in China. Have we forgotten the lessons of 2020 so quickly? The security review must be absolute and transparent, not a rubber stamp."
Chen Wei, Professor of International Trade at Singapore University: "The negotiations reflect a recalibration. Both economies recognize the cost of decoupling. This isn't a return to the past, but a new, more cautious framework for limited economic cooperation where mutual benefits are clear, such as in digital payments and tourism."