India's Unified Payments Interface (UPI) is set to debut in Japan, marking a significant step in expanding its global footprint. This move is facilitated through a partnership between the National Payments Corporation of India (NPCI) and Japanese IT services firm NTT Data, with trials planned for the financial year 2026. The primary goal is to provide a seamless and familiar payment experience for the increasing number of Indian tourists visiting Japan.

UPI, launched in India in 2016, has revolutionized digital payments within the country. Its interoperability, allowing any UPI app to scan a single QR code for payments, has been a key factor in its widespread adoption. The system enables instant money transfers from Indian bank accounts via mobile apps, typically at no cost to the user. In September 2025 alone, UPI processed 19.63 billion transactions, totaling ₹24.9 trillion.

The increasing number of Indian tourists visiting Japan is a key driver behind this initiative. In 2025, Japan welcomed 315,100 visitors from India, a 35% increase compared to the previous year. This trend aligns with projections from McKinsey, which estimate that outbound trips from India could grow from 13 million in 2022 to 90 million by 2040, fueled by rising incomes and a growing middle class.

Under the agreement, Indian tourists will be able to use their UPI apps to scan QR codes at merchant locations managed by NTT Data. This will allow for direct debiting of their Indian bank accounts, simplifying the transaction process and enhancing their overall travel experience. NTT Data, which already provides payment terminals and processing services to numerous businesses in India and Southeast Asia, will promote UPI adoption among Japanese merchants. The partnership aims to connect the Indian and Japanese payment systems, exploring broader opportunities for UPI integration across the Japanese market.

NPCI International Payments Ltd (NIPL), the global arm of NPCI, signed a memorandum of understanding (MoU) with NTT Data on October 7, 2025, to facilitate merchant transactions nationwide. This collaboration marks NIPL's first formal entry into East Asia, expanding UPI's international presence to approximately 20 partners across nine countries, including Singapore, France, Nepal, and Bhutan.

Ritesh Shukla, MD & CEO of NIPL, stated that the MoU establishes a strategic alliance that will enhance the payment experience for Indian tourists and reflects NIPL's ambition to establish UPI as a globally trusted system. Masanori Kurihara, head of payments at NTT Data Japan, added that the initiative aims to make shopping and payments more convenient for Indian tourists while attracting new customers to Japanese merchants.

This expansion of UPI is not an isolated event. China's Ant Group is also rolling out cross-border QR-based payments, indicating a broader trend toward integrating international payment systems. This move by UPI is expected to lower transaction friction for Indian travelers and offer Japanese merchants a cost-effective way to tap into tourist spending.

For NIPL, the partnership signifies a strategic approach to incremental international rollouts, delivering cross-border convenience without requiring full-scale localization, and setting a precedent for similar partnerships in other markets.