Unified Payments Interface (UPI) has emerged as the most popular mode of payment for a variety of transactions, from shopping and paying taxes to loan EMIs. Throughout 2024, UPI added several new features to further simplify payments, broaden its global reach, and enhance user experience. As we step into 2025, these new UPI updates are set to significantly impact how people transact online both in India and abroad.
In December 2024, the National Payments Corporation of India (NPCI) removed the UPI user onboarding cap on WhatsApp, enabling the app’s entire Indian user base—approximately 596.6 million users as of December 2024, to use WhatsApp Pay. This marks a significant expansion from previous limits, where only a portion of WhatsApp users could avail of the service. The move is expected to make UPI transactions via WhatsApp a common feature for users in India, further simplifying digital payments for millions.
In an exciting update for international travellers, RuPay JCB credit and debit cardholders can now avail 25% cashback on Point-of-Sale (PoS) transactions in countries like Japan, Singapore, Indonesia, and the Philippines. There is no minimum transaction amount required to earn cashback, which is credited in Indian Rupees. However, the cashback is capped at ₹3,000 per transaction, and the maximum cashback a cardholder can receive within the eligible period (October 30, 2024, to January 29, 2025) is ₹15,000.
UPI’s international reach continues to grow, making it easier for Indian travellers to make payments without worrying about local currencies. In 2024, France became the latest addition to the list, with the Eiffel Tower in Paris becoming the first French merchant to accept UPI. Along with France, Nepal and Qatar also introduced UPI payments, allowing Indians to make reservations and payments abroad seamlessly. Other countries like Bhutan, Mauritius, Singapore, Sri Lanka, and the UAE have already been accepting UPI payments, making it increasingly convenient for Indian travellers worldwide.
Non-resident Indians (NRIs) can now use UPI to conduct transactions seamlessly, even with international mobile numbers. UPI applications like iMobile (ICICI Bank), BHIM, and PhonePe support international mobile numbers, allowing NRIs with NRE/NRO accounts to onboard and transact with ease. The list of countries whose phone numbers are eligible for UPI linkage includes Australia, Canada, France, Hong Kong, Malaysia, Singapore, the UAE, the UK, and the USA.
In a significant boost for international tourists visiting India, UPI introduced the UPI One World Wallet. The app allows travellers to make payments at merchant locations across India by scanning QR codes. The wallet also ensures compliance with forex regulations, allowing unused balances to be transferred back to the original payment source. Travelers can complete the KYC process with just a valid passport and visa, simplifying the onboarding process.
A new feature, UPI Circle, allows primary UPI users to delegate transaction rights to their immediate family members. Introduced in 2024, this feature lets users authorise up to five secondary users to make transactions from their account, with set transaction limits. Fully delegated users are allowed to spend up to ₹15,000 per month and ₹5,000 per transaction. In partial delegation, the primary user must input the UPI PIN to approve transactions initiated by secondary users. This feature can be particularly helpful for users who travel abroad and want to ensure family members can manage domestic payments on their behalf.
RuPay cardholders now enjoy additional benefits with the introduction of a personal accident policy offering worldwide coverage. RuPay Platinum cardholders are eligible for a sum insured of ₹2,00,000, while RuPay Select cardholders can receive up to ₹10,00,000. To qualify for this benefit, cardholders must conduct at least one successful financial transaction using their RuPay card within 30 days of the accident.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 8, 2025, 4:10 PM IST
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