In a significant move to enhance cross-border digital payments, Abu Dhabi-based payment solutions provider Magnati has entered into a partnership with India’s National Payments Corporation of India (NPCI). This collaboration aims to introduce India’s Unified Payments Interface (UPI) to the United Arab Emirates (UAE), enabling seamless transactions for Indian travelers and expatriates in the region.
Unified Payments Interface (UPI): A Brief Overview
Launched in 2016 by NPCI, UPI has revolutionized digital payments in India by allowing instant money transfers between bank accounts through mobile devices. Its user-friendly interface and real-time processing have made it a preferred payment method, with over 16 billion transactions recorded in December 2024 alone.
The Partnership Details
The collaboration between Magnati and NPCI’s international arm, NPCI International Payments Limited (NIPL), focuses on integrating UPI into the UAE’s payment ecosystem. This integration will enable QR-based merchant payments via point-of-sale (POS) terminals, allowing Indian tourists and residents to make payments using UPI at various retail outlets across the UAE.
Benefits for Indian Travelers and UAE Merchants
With over 12 million Indians visiting the UAE annually, the introduction of UPI is poised to significantly enhance their shopping and payment experiences. Travelers can now use a familiar and convenient payment method, eliminating the need for currency exchange or international transaction fees. For UAE merchants, this development opens access to a substantial consumer base, potentially increasing sales and fostering stronger economic ties between the two nations.
Initial Implementation and Future Expansion
The partnership will initially roll out UPI acceptance at Dubai Duty Free, a popular shopping destination for international travelers. Subsequent phases aim to extend UPI services across various sectors, including retail, hospitality, transportation, and supermarkets, thereby broadening the scope of digital payments in the UAE.
Strengthening Economic and Cultural Relations
This initiative not only showcases India’s leadership in digital payment innovations but also sets a benchmark for cross-border payment interoperability. By facilitating seamless transactions, it contributes to building stronger economic and cultural ties between India and the UAE, reflecting a shared commitment to embracing technological advancements for mutual benefit.