Good news, UPI users! You can now make payments in this country too

NPCI International, the international arm of the National Payments Corporation of India (NPCI), has partnered with Cambodia's ACLEDA Bank Plc to launch UPI acceptance in that country. NPCI is the umbrella organisation that operates retail payments and settlement systems in India. The rollout of UPI in Cambodia marks the completion of the first phase of a cross-border QR payment linkage between the two countries through Bakong's KHQR, Cambodia's national QR code system (similar to UPI in India).

The development comes at a time when UPI is already accepted in eight foreign countries. These are Singapore, the UAE, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka. This makes Cambodia the ninth country where Indian travellers will be able to use UPI for seamless payments abroad.

The move is aligned with broader efforts to improve the speed, convenience and interoperability of cross-border digital payments between countries. It also supports the wider G20 objective of making international payments faster, cheaper and more accessible.

The June 3 launch was formalised in Phnom Penh and forms part of India's broader push to expand the global footprint of UPI, which has emerged as one of the world's largest real-time payment systems. The initiative is also expected to strengthen digital connectivity and financial ties between India and Cambodia.

How will the partnership benefit users?

The project is set to offer benefits such as easier payments for travellers and reduced reliance on cash and currency exchange. It is also expected to support tourism and business travel by making transactions more convenient for visitors from both countries. Cambodian merchants are set to benefit from greater access to Indian tourists, higher transaction volumes and real-time digital payment settlements.

While the first phase prioritises incoming Indian travellers, the partnership is designed to scale, with a planned bi-directional corridor in the subsequent phase, the ministry noted.

Under Phase 1, Indian travellers will be able to make UPI-based QR payments at more than 4.5 million merchants across Cambodia, according to a statement by India's Ministry of Finance.

In the next phase, a two-way payment corridor will be established that will enable Cambodian travellers to use their domestic banking and payment apps to scan and pay through UPI QR codes in India. "Cambodian citizens visiting India will soon be able to use their domestic banking and digital payment applications to scan millions of UPI QR codes throughout India, completing a highly advanced, two-way interoperable financial network through Bakong's KHQR," the ministry noted.

Timeline of UPI-like rollouts outside India

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Why the new UPI payment link matters for tourists and businesses

The ministry said that this digital payment corridor "represents a major shift in how commerce operates between the two countries". Key benefits include:

• Easier payments for travellers: Indian visitors can pay directly through UPI without worrying about currency exchange, carrying large amounts of cash, or dealing with foreign exchange charges
• More business for local merchants: Cambodian businesses get access to a large and growing base of Indian travellers, helping them attract more customers and increase sales
• Smoother day-to-day operations: Digital payments reduce dependence on cash, simplify collections, and enable faster and more secure settlements for merchants