New Delhi | January 24,2026 | SKY LINK TIMES
Indias UPI Likely to Launch in Japan:
India’s Unified Payments Interface (UPI), the world’s largest real-time digital payment system, may soon make its way to Japan, as the two countries explore linking their payment networks to cater to a rapidly growing number of Indian tourists.
According to a report by Nikkei Asia, Japanese IT services major NTT Data has partnered with the National Payments Corporation of India (NPCI) to conduct a pilot project in FY26. The trial would allow Indian visitors in Japan to make QR-code-based payments using UPI, with the amount directly debited from their Indian bank accounts.
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UPI–Japan Integration: What’s Being Planned
The initiative aims to bridge Japanese and Indian payment ecosystems, making transactions easier for Indian tourists visiting Japan. Under the proposed system, UPI would function seamlessly at participating Japanese merchants, similar to how it operates domestically in India.
NTT Data, which already provides payment terminals to around 6 million Indian merchants, is expected to play a key role in onboarding Japanese businesses and promoting UPI acceptance across retail and tourism hubs.
Indian Tourist Surge Drives the Move
Japan has seen a sharp rise in Indian visitors in recent years. The country welcomed approximately 3.15 lakh Indian tourists in 2025, marking a 35 per cent year-on-year increase, the report noted.
This trend is expected to accelerate further. Consulting firm McKinsey projects India’s outbound travel market to grow dramatically—from 13 million trips in 2022 to 90 million trips by 2040, driven by rising incomes and a growing middle class.
The potential rollout of UPI in Japan could significantly enhance convenience for Indian travellers by eliminating the need for foreign exchange cards or cash.
UPI’s Global Footprint Continues to Expand
Launched in 2016 as a government-led initiative, UPI has become an integral part of India’s digital economy. It allows users to make instant bank-to-bank payments through a single QR code across multiple apps.
In FY24, UPI transactions surged 42 per cent to 185.8 billion, and an IMF report in June 2025 described it as the “world’s largest real-time payment system.”
Since 2021, NPCI and the Indian government have exported UPI to eight countries, including Bhutan, Singapore, France, Sri Lanka and the UAE, while also assisting nations such as Peru and Namibia in developing similar digital payment infrastructure.
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UPI’s Growing Dominance in India
UPI accounted for 58 per cent of in-store payments in India in 2024, according to US-based payments firm Worldpay. This share is expected to rise to 76 per cent by 2030, while cash usage could drop from 15 per cent to just 7 per cent.
Its shared-platform design and widespread adoption by banks and fintech firms have been key drivers of its success.
What This Means Ahead
If the Japan trials prove successful, it would mark another major milestone in India’s digital diplomacy and strengthen financial connectivity between the two economies—especially in tourism and retail.
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