Is India's UPI Set to Launch in Japan After NTT Data Trials?
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Synopsis
India's UPI is set to expand into Japan, aiming to facilitate payments for Indian tourists. With a surge in travel and increasing partnerships, this initiative could redefine the payment landscape for cross-border transactions, enhancing convenience for travelers.
Key Takeaways
- UPI is expanding globally to enhance payment options for Indian tourists.
- NTT Data is partnering with NPCI for trials in Japan.
- India saw a 35% increase in tourist visits to Japan in 2025.
- UPI transactions skyrocketed by 42% in fiscal 2024.
- UPI is projected to dominate 76% of in-store payments by 2030.
New Delhi, Jan 24 (NationPress) India’s QR-code payment system, the Unified Payments Interface (UPI), is making strides beyond its domestic market, with Japan being one of the nations testing the system to accommodate the increasing influx of Indian tourists, as per a report.
The report from Nikkei Asia indicated that NTT Data, a Japanese IT services firm, is collaborating with the National Payments Corporation of India (NPCI) to conduct a trial in Japan in FY26. This initiative would enable Indian tourists to make payments via UPI, directly debiting their Indian bank accounts.
According to the report, the companies are exploring methods to link Japanese and Indian payment frameworks.
This initiative seeks to tap into the growing number of Indian travelers, as Japan welcomed approximately 315,000 visitors from India in 2025, marking a 35% increase year-on-year.
McKinsey forecasts that the number of outbound trips from India will soar from 13 million in 2022 to 90 million by 2040, driven by rising middle-class incomes that fuel a desire for international travel.
Introduced in 2016 as a government-backed initiative, UPI has now become integral to daily transactions, allowing a single QR code for use across major payment applications.
In fiscal 2024, UPI transactions surged by 42%, reaching 185.8 billion, and an IMF report in June 2025 labeled it the “world’s largest real-time payment system”.
Since 2021, NPCI and the Indian government have successfully expanded UPI to eight nations, including Bhutan, Singapore, France, Sri Lanka, and the UAE, and are assisting countries like Peru and Namibia in developing similar infrastructures.
The report highlighted that UPI's rapid domestic acceptance is attributed to its shared-platform design, alongside banks and fintech firms creating their payment applications based on UPI as a standard.
In 2024, UPI accounted for 58% of in-store payments in India, anticipated to rise to 76% by 2030, while cash transactions are projected to drop from 15% to 7%, according to US payments firm Worldpay.
NTT Data is expected to promote UPI among Japanese merchants, having already established payment terminals for businesses in India and Southeast Asia. Approximately 6 million Indian stores, including e-commerce platforms, utilize its services.
Point of View
I believe this initiative represents a significant step forward in enhancing the global payment landscape. By collaborating with NTT Data, India is not only facilitating easier transactions for its citizens abroad but also establishing a model for future international payments. This development reflects India’s commitment to innovation in financial technology and its role in the global economy.
NationPress
24/01/2026
Frequently Asked Questions
What is UPI?
The Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India, enabling instant money transfers between bank accounts using mobile devices.
Why is UPI expanding to Japan?
UPI is expanding to Japan to cater to the increasing number of Indian tourists, facilitating easier and more efficient payment options for them.
What are the benefits of UPI for travelers?
UPI offers convenience by allowing travelers to pay directly from their Indian bank accounts using QR codes, eliminating the need for currency exchange.
How many countries have adopted UPI?
Since 2021, UPI has been exported to eight countries, including Bhutan, Singapore, and the UAE, with ongoing efforts in others like Peru and Namibia.
What is the projected growth for outbound trips from India?
McKinsey projects that outbound trips from India will increase from 13 million in 2022 to 90 million by 2040.
