PayPal integrates UPI: International payments to get easier for Indians; here's how to use

The integration of UPI and PayPal will boost cross-border e-commerce for Indian consumers. Representational Pic

In a significant push for cross-border digital payments, US-based payments giant PayPal has announced its integration with India's Unified Payments Interface (UPI), allowing Indian users to make international purchases using UPI.

The integration was announced on Wednesday and will go live with the launch of PayPal World, a new global payments platform slated for late 2025. The initiative aims to connect the world's largest payment systems and digital wallets for seamless global transactions.

What is PayPal World?
PayPal World will be a unified global network enabling interoperability between major digital wallets and payment platforms. At launch, it will include:

UPI (via NPCI International Payments Limited)

PayPal

Venmo

Tenpay Global

Mercado Pago (MOU signed; further details awaited)

How will UPI work on PayPal?
Once live, Indian consumers will be able to pay international merchants using UPI via PayPal, just like they do domestically. For instance, while shopping on a global e-commerce site, an Indian buyer can select PayPal at checkout, after which a UPI payment option will be displayed.

This means Indian users can complete international transactions using their existing UPI-linked bank accounts, offering them a familiar, secure, and convenient method of payment for global purchases.

The move marks the first seamless interoperability between UPI and PayPal, enabling peer-to-peer and merchant payments globally and potentially transforming the international shopping experience for Indian users.

Why it matters:
Boosts cross-border e-commerce for Indian consumers

Makes international transactions simpler and more accessible

Leverages the popularity of UPI, which is already a household name in India

Brings India's digital payments ecosystem closer to global parity

The full rollout of UPI on PayPal is expected in fall 2025, following the official launch of PayPal World.

In a post on X on Wednesday, PayPal stated, "Your digital wallet is about to go global. Say hello to PayPal World. PayPal and Venmo are partnering with some of the world's largest payment systems and digital wallets, starting with MercadoPago, NPCI_Intl and Tenpay Global, to make cross-border payments a breeze. Shop virtually anywhere. Accept payments globally. Send money between Venmo and PayPal. This will change everything!"