Travel Smarter, Not Harder: Your Comprehensive Guide to Using UPI International 2024

UPI international adventure and wondering how you can leverage Unified Payments Interface (UPI) to simplify your financial transactions? Look no further! In this detailed guide, we’ll walk you through everything you need to know about using UPI International, from understanding where it works to activating UPI international payments on popular platforms like PhonePe and Google Pay.

Countries Where UPI Works

Before you set off on your journey, it’s essential to know which countries support UPI transactions. While UPI is primarily used in India, its reach is gradually expanding to other countries, especially those with significant Indian expatriate communities or strong business ties with India. Currently, countries like the United Arab Emirates (UAE), Singapore, the United States, and the United Kingdom have started accepting UPI payments at select merchants and establishments.

Enabling Foreign Payments

When using UPI international transactions, it’s crucial to ensure that your UPI account is enabled for foreign payments. Not all UPI accounts are automatically configured for international use, so you may need to contact your bank to activate this feature. Banks typically offer this service upon request and may require you to undergo additional verification steps to enable international transactions securely.

Role of Banks

Banks play a pivotal role in facilitating UPI transactions abroad. As the custodians of your UPI account, banks ensure the seamless transfer of funds between your account and the recipient’s account, regardless of geographical boundaries. Additionally, banks collaborate with international payment networks and regulatory authorities to ensure compliance with cross-border transaction regulations and safeguard the integrity of UPI transactions.

What You Need to Do

To use UPI on your next trip abroad, follow these simple steps:

1. Activate UPI International Payments: Contact your bank and request activation of international payments on your UPI account.
2. Verify Your Identity: Complete any identity verification or documentation required by your bank to enable international transactions securely.
3. Update Your UPI App: Ensure that you have the latest version of your UPI-enabled mobile app installed on your smartphone to access international payment features.
4. Check Exchange Rates: Before initiating a transaction, check the prevailing exchange rates to understand the cost of converting your home currency into the local currency of the destination country.
5. Locate UPI-Friendly Shops: Upon arrival at your destination, look for merchants and establishments that accept UPI payments. Many businesses display signage indicating UPI acceptance, making it easier for travelers to identify UPI-friendly shops.
6. Initiate Transactions: Use your UPI-enabled mobile app to initiate transactions by entering the recipient’s UPI ID or scanning their QR code. Follow the prompts to complete the transaction securely.
7. Monitor Transactions: Keep track of your UPI transactions and account balances to stay informed about your financial activities while traveling. Most UPI apps provide real-time transaction updates and notifications for added convenience.

Exchange Rate Calculation

When using UPI international transactions, it’s essential to understand how exchange rates are calculated. Exchange rates represent the value of one currency relative to another and fluctuate based on various factors, including economic conditions, geopolitical events, and market sentiment. Banks and payment service providers typically apply exchange rates that include a markup or margin to cover transaction costs and generate revenue. Therefore, it’s advisable to compare exchange rates offered by different providers and choose the most favorable option to minimize currency conversion fees.

RBI Enlists NPCI to Support Paytm App’s UPI Operations Continuity

Reporting of Transactions by Banks

Banks are responsible for reporting UPI transactions, including international transfers, to regulatory authorities as part of their compliance obligations. These reports help regulatory agencies monitor cross-border fund flows, detect potential money laundering or terrorist financing activities, and ensure the integrity of the financial system. By adhering to regulatory requirements and maintaining transparent transaction records, banks contribute to the overall security and stability of the UPI ecosystem.

Tax Considerations

When using UPI international transactions, tax implications may vary depending on the nature of the transaction and the tax laws of the countries involved. In some cases, cross-border payments may be subject to withholding taxes, value-added taxes (VAT), or other levies imposed by the respective jurisdictions. It’s advisable to consult with tax advisors or financial experts to understand the tax implications of international transactions and ensure compliance with applicable tax laws.

UPI for Online Transfers

In addition to in-person transactions, UPI can also be used for online transfers, allowing you to make payments conveniently from anywhere in the world. Whether you’re booking flights, accommodations, or shopping online, UPI offers a secure and efficient payment option that eliminates the need for credit cards or traditional banking channels. Simply select UPI as your preferred payment method at checkout, enter your UPI ID, and authenticate the transaction to complete the payment instantly.

How to Activate UPI International on PhonePe ?

To activate UPI international payments on PhonePe, follow these steps:

1. Open the PhonePe app on your smartphone.
2. Go to the “My Money” section and select “Bank Accounts.”
3. Find your linked bank account and tap on “Manage Account.”
4. Scroll down and look for the option to enable international payments.
5. Follow the on-screen instructions to complete the activation process, which may include verifying your identity or providing additional information as required by your bank.
6. Once international payments are enabled, you can use PhonePe to make UPI transactions abroad seamlessly.

How to Activate UPI International on Google Pay ?

To activate UPI international payments on Google Pay, follow these steps:

1. Launch the Google Pay app on your device.
2. Tap on your profile icon or initials in the top right corner to access your account settings.
3. Select “Settings” from the menu options.
4. Navigate to the “Payments” section and choose “UPI IDs.”
5. Find your linked bank account and tap on it to view account details.
6. Look for the option to enable international payments and follow the prompts to activate this feature.
7. Once international payments are enabled, you can use Google Pay to initiate UPI transactions internationally with ease.

Conclusion

In conclusion, UPI offers a convenient and secure payment solution for international travelers, allowing you to make transactions abroad with ease and confidence. By understanding where UPI works, enabling international payments, and following simple steps to initiate transactions, you can unlock the full potential of UPI on your next trip abroad. Whether you’re exploring new destinations, meeting business associates, or simply enjoying leisure activities, UPI empowers you to manage your finances seamlessly while on the go. Activate international payments on your preferred UPI app today and embark on a hassle-free journey filled with unforgettable experiences.