UPI payments: All that Indians living in the UAE and tourists need to know

They can use their phones linked to Indian bank accounts to scan QR codes in Dubai stores to make instant digital payments

About 400 million people use the payment platform in India. Antonie Robertson / The National

A digital payment network is being unveiled across the UAE, making it easier for Indians travelling to Dubai to make instant payments using mobile phones linked to their bank accounts back home.

The QR-code based Unified Payments Interface (UPI) is the main engine behind the digital payment platform in India.

Immensely popular in India, where about 400 million people use the payment platform, the value of UPI transactions hit $2.2 trillion last year, according to the National Payments Corporation of India that launched the platform.

The next goal for the real-time payment network is to extend this convenience and displace cash across global travel routes that Indians frequent, as well as in countries they have settled in.

India is ranked as the number one source of tourist arriving in the UAE. More than 2.2 million Indian tourists came last year – and more than 3.5 million Indians live in the Emirates, making them the largest expatriate group in the country.

Opening up a convenient payment system for tourists from a country that accounts for the largest number of arrivals into the UAE is expected to boost spending across the travel, tourism and retail businesses sectors.

The way we are going about displacing cash, it will also happen in the travel corridor

Ritesh Shukla,
chief executive of NPCI International Payments Limited

“When you look at UPI you need to look at the scale that it has created – for every one card transaction in India there are about 28 that happen on UPI. That is the magnitude of it,” Ritesh Shukla, chief executive of NPCI International Payments Limited told The National.

“UPI’s success is all about displacing cash."

What is UPI?

Launched in 2016, UPI’s simplified payments has meant that instead of using cash, people in India scan QR codes with their phones to make payments to the smallest of stores, street vendors and hawkers.

Already operating in some locations in Dubai, Indian tourists will soon not have to carry cash or convert their money to dirhams as the payment system gains wider acceptance.

Instead, they can pay in rupees from their Indian account using UPI-enabled payment points being introduced in more than 60,000 stores across the Emirates over the next months.

Indians living in the Emirates too can scan the QR codes with their UAE mobile numbers linked to their Indian bank accounts.

Displacing cash

The UAE joins countries such as Singapore, Sri Lanka, Mauritius and France – also favourite destinations for Indian tourists – where UPI payments are accepted.

“We are focused on Indian tourists who are travelling to the UAE. We want to create, design and add value for them,” Mr Shukla said.

“We truly believe in the power of the mobile phone and want to give them a friendly, simple and technically advanced payment option.”

NPCI International Payments Limited has linked up with Network International, a leading digital commerce network in the Middle East and Africa, and Mashreq Bank, one of the UAE’s leading financial institutions, to widen the reach of UPI payments.

The Indian company aims to deepen its presence so the QR-code systems will be adopted in most stores that Indian tourists frequent.

“We are in discussion with another player and hope to go live in the next six to nine months,” Mr Shukla said.

“Then we will have coverage of about 85 per cent to 90 per cent of the market.

“We are in discussion with big retail groups in the UAE to ensure UPI is rolled out across merchants that are relevant to Indian tourists.”

Where can it be used in the UAE?

Hotels, stores, restaurants and tourist spots will gradually display signs in the coming months informing customers where the QR-code based payments are accepted.

Al Maya supermarket chain said it included the Indian payment system across its 50 stores in the UAE.

“I’m excited about this for the retail industry as it will enhance tourist spending,” said Kamal Vachani, group director.

“The number of Indian tourists coming in is high anyway. This will make it convenient for them, so we are happy to accept UPI in our supermarkets.”

Indian tourists visiting the UAE will soon not need to carry cash or convert their money to dirhams. The service is already available in Al Maya supermarkets in Dubai. Antonie Robertson / The National

He plans to invite Indian influencers to stores in the group to demonstrate how the payment system works, in an attempt to attract a bigger footfall.

Indians tourists in Dubai have already started using the system and are posting videos online about how convenient it is to use.

“I felt it was like shopping in India. I saw that UPI was accepted in a shop and restaurant near my hotel, so I scanned the QR and the payment for chocolates and my meal was done,” said Deepti Yagnik from Nagpur in western India.

“It’s great because you may not have your card but you have your phone and that’s all you need to scan and pay.”

Who can use UPI in the UAE?

Indian tourists in the UAE and and those living in the Emirates who have bank accounts in India can use the UPI network.

Indians residing and working in the UAE can use UPI by linking their non-resident accounts – non-resident ordinary (NRO) and non-resident external (NRE) – in Indian banks with a UPI-enabled mobile application.

This means that Indian NRE accounts, where they deposit foreign earnings in India, and NRO accounts, where they keep rupee-denominated earnings from India, can be used for UPI transactions.

NRIs must register their UAE mobile number with their bank. Their UAE mobile number must be linked with the Indian bank account as this number will be used by UPI apps for verification and security.

How can you use it?

Look for the UPI-QR code signs in stores, scan the code, enter the payment amount, check the details, enter the UPI pin and the transaction is complete.

Indian travellers can use a UPI app, applications of Indian lenders such as ICICI Bank’s iMobile or HDFC’s PayZapp, and commonly used third-party apps such as Bhim, PhonePe or Google Pay in the UAE.

Mashreq has worked to integrate UPI-enabled apps such as PhonePe with their payment platforms.

Opening up a convenient payment system for millions of Indian tourists and non-resident Indians is expected to boost spending across travel, tourism and retail businesses sectors. Antonie Robertson / The National

NRIs must first check whether their non-resident account with their bank back home supports UPI transactions.

Then using their UAE mobile number linked with their NRO or NRE account, they can download a UPI-enabled app of their choice from Apple's App Store or Google Play.

Their overseas number will be verified and they will be given a unique UPI ID, following which they can set their PIN. It is then that their India account details are linked with their mobile number.

At this point, they are now ready to make purchases in the UAE or India.

What can Non-Resident Indians use it for?

NRIs can also use their UAE mobile number to make utility bill payments in India.

They can scan any Indian QR code to make purchases, get online access to millions of Indian stores that accept UPI transaction and also send money to another UPI ID or Indian bank account.

Why is it popular?

Ease of access. The system allows Indian tourists and NRIs to make instant payments using the UPI ID, with no bank details needed.

Unlike bank online transactions, there is no need to add a beneficiary or lengthy bank account details of the recipient; they just use a UPI ID, QR code or phone number.

Any hidden charges?

There are no additional fees or charges for money transfers and payments for Indian travellers and NRIs.

Is there a maximum limit?

The limit is 100,000 rupees ($1,190 or Dh4,380) a day.

Why real time payments?

Payments can be settled within minutes across the world.

India dominates the global real-time payments market, with 129.3 billion transactions recorded in 2023 – more than the rest of the world’s top 10 real-time payments markets combined.

As much as 49 per cent of all real-time transactions were made in India, followed by Brazil (14 per cent), Thailand (8 per cent) and China (7 per cent), said an ACI Worldwide payment data report.

Is it secure?

The transactions have multilayered authentication, including the UPI pin.

The National Payments Corporation of India is an initiative of the Reserve Bank of India and the Indian Banks’ Association.

The introduction of UPI transactions in the UAE has the backing of both governments.

President Sheikh Mohammed and Indian Prime Minister Narendra Modi agreed to interlink instant payment platforms during a meeting in Abu Dhabi in February, during which several agreements were signed.

Strengthening digital platforms will boost financial connectivity between the two nations.