Indian tourists planning a trip to Japan will soon have a new, convenient way to pay for goods and services. The Unified Payments Interface (UPI), India's mobile-based fast payment system, is coming to Japan, thanks to a collaboration between NPCI International Payments Ltd (NIPL) and NTT DATA Japan. This partnership will allow Indian travelers to use their existing UPI apps to make payments at merchant locations managed by NTT DATA across Japan.
What the Agreement Entails
The agreement between NIPL, the international arm of the National Payments Corporation of India (NPCI), and NTT DATA Japan, was formalized on Tuesday. It paves the way for UPI to be accepted at a wide range of merchant locations throughout Japan. NTT DATA Japan operates CAFIS, the country's largest card payment processing network, connecting merchants, banks, and ATMs nationwide. This makes them a key player in Japan's payment ecosystem and an ideal partner for introducing UPI to the Japanese market.
Under the agreement, Indian tourists will be able to scan QR codes using their UPI apps – such as PhonePe, Google Pay, or Paytm – to make payments in Indian Rupees (INR). The transaction amount will be instantly converted to Japanese Yen. This eliminates the need for currency conversion or reliance on foreign credit cards, offering a more familiar and seamless digital payment experience.
Benefits for Indian Tourists
The introduction of UPI in Japan offers several advantages for Indian tourists:
- Convenience: Travelers can use their preferred UPI apps, which they are already familiar with, to make payments.
- No Currency Hassles: UPI removes the need to exchange currency or carry large amounts of cash.
- Cost-Effective: By bypassing international card fees, UPI can potentially offer a cheaper payment solution.
- Secure and Transparent: UPI transactions are secure and provide instant transparency, allowing users to easily track their spending.
Growing Tourism and Economic Impact
The timing of this agreement is significant, as the number of Indian tourists visiting Japan has been steadily increasing. Between January and August 2025, over 208,000 Indian tourists visited Japan, marking a 36% increase compared to the same period in 2024. By offering a convenient and familiar payment method, the UPI integration is expected to further boost tourism and strengthen the economic ties between India and Japan.
Masanori Kurihara, Head of Payments in Japan at NTT DATA, believes that enabling UPI will make shopping and payments easier for Indian tourists while supporting Japanese merchants in growing their businesses.
UPI's Expanding Global Footprint
The integration of UPI in Japan marks its entry into East Asia and demonstrates India's growing influence in the global fintech landscape. UPI is already accepted in several countries, including France, the UAE, Nepal, Mauritius, Peru, Singapore, Sri Lanka, Qatar, and Bhutan. NIPL has plans to expand UPI's reach to even more international markets, establishing it as a trusted and accessible digital payment system worldwide.
Ritesh Shukla, MD & CEO of NIPL, emphasized that the MoU with NTT DATA lays a strong foundation for UPI's acceptance in Japan and reflects the goal of establishing UPI as one of the most trusted digital payment systems globally.