Indian customers will soon be able to use their domestic accounts linked to the United Payments Interface (UPI) to shop from international websites.

Thanks to a tie-up between the National Payments Corporation of India and US-based payments firm PayPal, cross-border UPI transactions will become a reality by the end of the year, expanding the reach of India’s digital payments system.

Indians travelling abroad will be also able to use the UPI-linked digital payments system at cafés, restaurants, stores or hotels.

Once customers click on the PayPal button at checkout after shopping from international websites that ship to India, they will be able to see the UPI logo among other payment options to complete the transaction.

Sources in PayPal said the modus operandi for point-of-sale (PoS) transactions abroad using UPI would be unveiled in the fall of 2025.

Ritesh Shukla, the managing director and CEO of NPCI International Payments Limited, said the integration of UPI on PayPal World’s platform was a significant step in expanding UPI’s global footprint.

“It aligns with our vision to make cross-border payments more seamless, secure and inclusive. This collaboration will enhance convenience for Indian users making payments abroad and enable global businesses and merchants to tap into a growing base of UPI users,” Shukla said in a statement.

Launched in 2016, UPIhas become the preferred choice for Indians for digital payments. In June this year alone, ₹24 lakh crore worthof transactions were processed via 18.39 billion UPI transactions, an increase of 32 per cent in one year.

In contrast, UPI handled only ₹5.47 lakh crore through 2.8 billion transactions in June 2021, testifying to the popularity of the system that allows users to transfer money real time between bank accounts through a mobile application. At present, UPI handles 85 per cent of India’s digital payments and nearly 50 per cent globally.

PayPal’s collaboration with the NPCI is part of a series of global partnerships that will connect many of the world’s largest payment systems and digital wallets on a single platform. The US-based payments company is also tying up with Venmo, Tenpay Global of China and Mercado Pago of Brazil.

Alex Chriss, the president and CEO of PayPal, said PayPal World would bring together many of the world’s largest payment systems and digital wallets on a single platform, with the potential to revolutionise cross-border commerce.

“The challenge of moving money across borders is incredibly complex, and yet this platform will make it so simple for nearly two billion consumers and businesses. We believe the changes we are announcing today have the potential to be a real game changer over time,” Chriss said.