India has taken another major step in expanding its digital payments footprint globally with NPCI International Payments Ltd (NIPL) signing a Memorandum of Understanding (MoU) with NTT DATA Japan to enable Unified Payments Interface (UPI) acceptance in Japan. This collaboration is a strategic move to support Indian tourists visiting Japan by allowing them to make QR code-based UPI payments at merchant outlets acquired by NTT DATA.

The partnership will allow travellers to use their existing UPI applications to pay directly at Japanese merchants without needing international cards or currency exchange. For Indian users who rely heavily on apps like PhonePe, Google Pay, Paytm, BHIM, or other UPI-based platforms, this development offers unprecedented convenience in everyday transactions abroad.

NTT DATA Japan, a major technology and payment services provider in the country, operates CAFIS, which is recognised as Japan's largest card payment processing network. With CAFIS already supporting a vast merchant network, integrating UPI acceptance will significantly broaden the availability of Indian digital payment systems across retail, hospitality, transport, dining, and shopping establishments.

The move comes at a time when travel from India to Japan has been steadily rising. Between January and August 2025, more than 2.08 lakh Indian travellers visited Japan, marking a 36% increase compared to the same period in 2024. This sharp growth has prompted a stronger need for seamless and familiar payment options for travellers who prefer digital transactions over cash.

According to Mr. Ritesh Shukla, Managing Director and Chief Executive Officer of NIPL, the agreement with NTT DATA Japan will transform the digital payment experience for Indian tourists, making their transactions faster, safer, and more convenient. He noted that the collaboration simplifies cross-border payments and reinforces India’s vision of positioning UPI as a global digital payments standard.

For Japan, this collaboration not only supports inbound tourism but also promotes modern payment technologies in line with global trends. By enabling UPI-based QR code payments, Japanese merchants stand to benefit from increased spending by Indian visitors who are more likely to transact when familiar digital payment options are available.

From India’s perspective, extending UPI across borders is an essential part of its digital financial connectivity strategy. The MoU with NTT DATA Japan aligns with ongoing efforts to take UPI to international markets. Similar partnerships have already been signed in countries such as France, the UAE, Sri Lanka, Singapore, Nepal, Mauritius, and Bhutan. Each new pact strengthens UPI’s position as a versatile, scalable, and secure payment system with global adaptability.

The acceptance of UPI in Japan reflects the rapid evolution of India’s fintech capabilities. What began as a domestic real-time payment system has now evolved into a platform with international relevance, accelerating its adoption beyond national borders. The system’s interoperability, low-cost architecture, and QR code-based design make it ideal for tourism and international merchant acceptance.

With the involvement of NTT DATA and its CAFIS network, implementation is expected across major cities and travel hubs in Japan. Merchants who are already accepting digital payments through Japanese systems will be able to add UPI to their existing payment offerings through technical integration.

This collaboration also helps reduce reliance on currency exchange services and international card fees, which are common pain points for travellers. Instead, users can pay directly from their Indian bank accounts through apps they already use, with real-time currency conversion handled within the transaction framework.

The agreement marks a milestone in India-Japan digital cooperation and showcases the role of international fintech partnerships in shaping the future of cross-border digital payments. It also adds momentum to India’s mission to promote UPI globally and reinforces confidence in the platform’s reliability, scalability, and relevance to international commerce.

As travel between India and Japan continues to surge, UPI acceptance is set to provide a more comfortable payment environment for visitors, strengthening people-to-people ties and boosting spending in sectors such as tourism, business travel, retail, transportation and hospitality.

By building such partnerships, NPCI International is accelerating the vision of making UPI a globally recognised payment method, especially in destinations frequented by Indian travellers. The digital payment link between India and Japan is expected to evolve further as more merchant categories adopt UPI and both governments continue to support stronger financial connectivity.

This development symbolises India’s progress in exporting its successful fintech infrastructure to global markets and marks another important milestone in the journey of UPI from a domestic payment platform to an internationally accepted digital payments ecosystem.

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