Can you use UPI abroad? Here’s what Indian travellers must know about charges, limits and security risks

For Indian travellers, making payments overseas is beginning to look very different from what it did just a few years back.

Instead of lugging around a lot of cash, stressing over forex cards, or paying high credit card conversion charges, many travellers today are increasingly using UPI at shops, restaurants, airports, and retail outlets overseas.

But while UPI abroad offers convenience, experts say many travellers still do not fully understand how international UPI payments actually work, what charges apply, where payments may fail, and what fraud risks users should watch out for.


And unlike domestic UPI transactions, cross-border payments often involve multiple banks, forex conversions, telecom networks, and merchant restrictions operating simultaneously behind the scenes.

Do countries accept UPI internationally?
UPI is still growing its global presence and does not work uniformly across all countries.

“UAE, Singapore, Bhutan, Nepal are some of the countries with active corridors and established merchant ecosystems,” says Ranadurjay Talukdar, Partner and Payments Sector Leader at EY India.

In these markets, Indian travellers can increasingly use UPI at restaurants, retail stores, tourist locations, and local merchant outlets.

However, adoption remains uneven across Western countries and Europe, where UPI acceptance is still relatively limited and often restricted to select merchants or payment partnerships.

This means travellers cannot yet assume that UPI will work everywhere globally the way it does in India.

Experts therefore advise travellers to always carry backup payment options such as international debit cards, forex cards, credit cards and emergency cash because merchant acceptance can still vary widely between countries and even between stores in the same city.

What are the transaction limits for UPI payments abroad?
Many travellers are unaware that international UPI payments also come with transaction limits.

“As per recent updates, UPI Global transactions at merchant outlets abroad can have a limit of up to ₹2 lakh per transaction/day in supported international markets, including Europe, where UPI acceptance is enabled through partnerships,” says Rohit Mahajan, Founder and CEO, plutos ONE.

This is intended for merchant payments (shopping, dining, retail purchases abroad), not all UPI use cases.

However, the actual usable limit often depends on several layers operating simultaneously.

Even if the UPI network permits a ₹2 lakh transaction, the issuing bank may impose a lower cap, the UPI app may apply risk-based restrictions, and foreign merchants themselves may set their own payment ceilings.

Some merchants abroad may allow only smaller transaction values despite higher network limits because of local compliance rules, terminal restrictions, or currency conversion controls, explains Mahajan.

For example, a luxury store abroad may technically support UPI but permit only transactions below a certain amount.

That is why experts recommend confirming payment acceptance and limits before completing large purchases overseas.

Is using UPI abroad cheaper than credit cards and forex cards?
One of the biggest reasons travellers are experimenting with UPI abroad is cost.

Traditional international credit card transactions often attract:

• Foreign exchange markup fees
• Currency conversion charges
• Dynamic currency conversion costs
• Hidden bank spreads

Standard Indian credit cards can apply forex markups ranging between 3.5% and 4.5% on international transactions, according to Talukdar.

“The front-end applications, often referred to as Third-Party Application Providers (TPAPs) such as Google Pay, PhonePe, Paytm, and BHIM, do not independently levy a transaction fee, convenience fee, or foreign exchange markup for processing the cross-border payment,” he says.

UPI-based international payments are generally far cheaper because the linked bank account is debited instantly instead of operating on unsecured credit.

“Depending on the specific issuing bank and the liquidity of the currency pair involved (for instance, the highly liquid INR-AED pair versus the less liquid INR-EUR pair), the markup over the interbank rate ranges from virtually zero up to approximately 0.4%,” adds Talukdar.

However, the exact exchange rate and charges may still vary slightly between banks.

Despite the cost advantage, Talukdar notes that UPI still works best as a companion payment option rather than a complete replacement for cards because international acceptance remains limited and UPI currently offers no ATM withdrawal utility.

What should travellers do if a UPI payment fails abroad?
One of the most stressful situations travellers face abroad is when a payment fails but the money still gets debited from the bank account. Experts say this is not uncommon in international digital transactions because multiple intermediaries are involved.

Many failed transactions are automatically reversed within 24 to 48 hours depending on the bank and payment partner involved, says Mahajan.

However, travellers should immediately:

• Check the transaction status inside the UPI app
• Note the UTR number
• Verify whether the amount is fully debited or temporarily blocked
• Raise a complaint through the app if reversal does not happen

He also advises travellers not to attempt the payment repeatedly immediately after failure because this can sometimes lead to duplicate debits.

If the issue remains unresolved, users should contact both the bank and the payment app while sharing transaction details such as merchant name, transaction time, UTR number and payment amount.

Since international UPI transactions involve foreign acquiring systems and payment intermediaries, dispute resolution can sometimes take longer than domestic UPI complaints.

Is UPI abroad safe to use? Here are the biggest fraud risks
Experts say using UPI abroad is generally safer than carrying large amounts of cash and, in some ways, safer than using cards. Unlike cards, UPI does not require users to share card numbers or CVV details with merchants, reducing risks such as card cloning or skimming.

UPI also relies on device binding, bank linkage, and PIN-based authentication, making unauthorised access harder.

However, international usage introduces new fraud risks.

QR code scams remain one of the biggest concerns Fraudsters may replace legitimate merchant QR codes with fake ones designed to redirect money into fraudulent accounts, according to Mahajan.

Cybersecurity experts also warn about phishing links, fake UPI websites, social engineering scams, SIM swap fraud as well as fake payment requests.

Users should avoid scanning saved or shared QR codes abroad and should only scan codes presented live by merchants, says Ankit Sharma, Senior Director and Head of Solutions Engineering, Cyble.

He also cautions travellers against accepting unknown payment requests because fraudsters may try to trick users into authorising outgoing payments instead of receiving money.

Experts recommend:

• Avoiding public Wi-Fi while making payments
• Enabling transaction notifications
• Keeping UPI apps updated
• Regularly monitoring account activity
• Never sharing OTPs or UPI PINs

Because legitimate banks or payment providers never ask for such information.

Can NRIs and travellers using international SIMs use UPI smoothly?
UPI access abroad depends heavily on mobile number verification, SIM functionality, bank support, and app compatibility.

Many banks and UPI apps now support NRI-linked accounts and international mobile numbers, allowing some users to continue using UPI without maintaining an Indian SIM.

However, activation problems are still common.

Users who switch devices, disable Indian SIMs, or face telecom restrictions abroad may encounter problems during OTP verification or device binding, says Mahajan.

Delayed SMS delivery, roaming issues, unsupported international numbers, or bank-level restrictions can also interrupt activation.

Experts therefore advise travellers to:

• Ensure their registered mobile number remains active
• Enable international roaming before departure
• Update UPI apps beforehand
• Complete device verification while still in India whenever possible

Also, travellers should always carry an alternative payment option in case UPI temporarily stops functioning abroad.

The combination of lower forex costs, direct bank debits, and app-based convenience is making cross-border payments significantly easier for travellers.

But experts say UPI abroad is still evolving.

For now, the smartest approach for travellers may not be replacing cards entirely but using UPI as part of a broader, diversified travel payment strategy.