Wednesday 08 / July / 2026
New Delhi: India's hugely successful digital payments system, which transformed the way millions transfer money instantly using their mobile phones, is increasingly being viewed as a powerful instrument of economic diplomacy, analysts say.
The country's homegrown digital public infrastructure, led by its widely used instant payment network, has become one of India's biggest technological success stories and is now attracting growing international interest.
That potential is becoming particularly evident in Indonesia, Southeast Asia's largest economy, where officials are examining whether India's low-cost digital payment architecture can be adapted to support the country's own financial and digital transformation goals.
Experts say the growing interest reflects India's expanding role in exporting digital public infrastructure, enabling partner nations to build efficient, affordable and inclusive payment systems while strengthening economic cooperation and technological ties.India's Unified Payments Interface (UPI) will be integrated with Indonesia's payment system, a move expected to make cross-border payments easier and strengthen trade, tourism and business between the two countries, Prime Minister Narendra Modi announced on Tuesday during his visit to Jakarta.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw shared the announcement made by PM Modi.
Earlier today PM Modi, while addressing a joint statement with Indonesian President Prabowo Subianto after bilateral talks stated, "India's UPI is going to integrate with Indonesia's payment system. This will strengthen both ease of doing business and ease of travel."
President Prabowo Subianto also confirmed that both countries will work on establishing cross-border QR payment linkages.
The two leaders reviewed cooperation across trade, investment, digital and financial technology, defence, energy, healthcare, space and critical minerals. They also welcomed the launch of the Indonesia Open Network (ION), which is based on India's Open Network for Digital Commerce (ONDC), reflecting deeper collaboration in digital public infrastructure.
The UPI integration is expected to allow users from both countries to make digital payments more seamlessly, reducing dependence on cash and simplifying transactions for travellers and businesses. It is also expected to support cross-border commerce by making payments faster and more convenient.
The move builds on India's growing efforts to expand UPI internationally. The payment platform is already operational in countries including Singapore, the UAE, Bhutan, Nepal, Sri Lanka, France, Mauritius, Qatar, Cambodia and Greece, enabling Indian users to make merchant payments and, in some markets, transfer money directly using UPI-linked applications.
According to the Ministry of Electronics and Information Technology, India has signed MoUs or agreements with 23 countries for cooperation on Digital Public Infrastructure (DPI), while UPI is already live in more than eight countries, including Singapore, the UAE, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar. The ministry has said the growing international adoption of UPI is strengthening India's position in the global digital payments ecosystem.
The integration with Indonesia is expected to deepen digital economic cooperation between the two countries while supporting India's broader push to make UPI a globally accepted payment platform. The initiative is also likely to benefit businesses, tourists and the Indian migrants by enabling smoother and more efficient cross-border transactions.
