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In a major step toward expanding India’s digital payments footprint globally, NPCI International Payments Ltd. (NIPL) — the overseas arm of the National Payments Corporation of India (NPCI) — has signed a Memorandum of Understanding (MoU) with NTT DATA Japan to enable Unified Payments Interface (UPI) acceptance at merchant locations across Japan.
Under the agreement, Indian tourists and travelers in Japan will likely be able to pay using their familiar UPI apps by scanning QR codes at partnering merchants managed by NTT DATA. This move is aimed at making cross-border payments seamless and encouraging cashless transactions for Indian visitors to Japan.
According to NTT DATA, this partnership “lays the foundation to enable acceptance of UPI” in East Asia, particularly catering to inbound tourism from India. Ritesh Shukla, MD & CEO of NIPL, said the collaboration is “an important step toward improving the digital payment experience for Indian travellers and simplifying cross-border payments.”
While the MoU signals intent, it will require further integration work — with Japanese regulations, local payment infrastructure, currency conversion, settlement flows, and merchant onboarding — before UPI can be fully live in Japan.
Why Japan?
- Growing Indian tourism to Japan: As more Indians travel to Japan, offering UPI payments reduces friction and encourages spending inside the local economy.
- Strengthening fintech ties: Japan has a mature payments ecosystem; partnering with a well-established Japanese player like NTT DATA helps align UPI with local systems.
- Expanding UPI globally: NPCI has been steadily pursuing international expansion for UPI, and launching in Japan would mark its first major foray into East Asia.
Where Is UPI Already Accepted?
NPCI and its international arm maintain a list of countries where UPI (or related cross-border merchant payments) is live at select merchant locations. Based on current information, here’s a consolidated view:
Countries with UPI-enabled merchant acceptance (select merchants / pilot / rollout stages)
From NPCI’s “UPI Global” live members list:
- Bhutan
- France
- Mauritius
- Nepal
- Singapore
- Sri Lanka
- United Arab Emirates (UAE)
Other independent media tracking suggests additional countries, either already live or under deployment:
- France — UPI was trialed at tourist spots like the Eiffel Tower.
- UAE — UPI acceptance is more mature, with many merchants already accepting it.
- Sri Lanka — Integration via LankaPay, allowing Indian UPI users to pay via QR integration.
- Qatar — Recently added to UPI’s merchant acceptance network.
- Cyprus — Reported as a recent entry (2025) through tie-ups with Eurobank Cyprus.
Media sources sometimes list more countries (e.g. Malaysia, Oman, UK) as being in various stages of integration or testing.
It is important to note that “acceptance” often means select merchants, pilot programs, or QR scan capability — not necessarily full ubiquity across all merchants.
Challenges & Considerations
- Regulatory alignment
Japan’s regulatory and financial infrastructure may differ in settlement rules, currency conversion, anti-money laundering (AML) practices, and merchant onboarding standards. Integrating UPI into local systems will require regulatory coordination. - Back-end integration & interoperability
Merchant POS systems, payment processors, and banks in Japan might use payment rails and standards differing from India’s UPI stack. Ensuring interoperability and real-time settlement across borders will be nontrivial. - Currency conversion & foreign exchange management
Payments will need real-time conversion from Indian rupee accounts to Japanese yen (or local settlement) while ensuring transparency and favorable rates to users. - Merchant adoption & incentives
Convincing Japanese merchants to adopt UPI (i.e. install QR readers, accept Indian UPI users) may require incentives or partnerships. - User awareness & trust
Indian users in Japan must be informed about which merchants accept UPI, any additional fees (FX margins), and how to use the service. - Risk, fraud, and compliance controls
Cross-border payment systems have higher compliance and fraud risk. Systems must ensure security, user authentication, and protection.
What It Means for Indian Travelers & India’s Fintech Ambitions
If UPI becomes usable in Japan, it will mean that Indian tourists can more easily transact in local retail, restaurants, and other services without relying entirely on physical cash or foreign cards. This boosts convenience and reduces transaction friction.
Strategically, the Japan deal (if fully implemented) will strengthen UPI’s position in East Asia, helping India’s ambitions to make UPI a globally recognized payment standard. NPCI has already expressed interest and is exploring further expansion in Africa, Latin America, and other regions.
