NPCI Teams Up with HSBC India and JP Morgan Payments to Bring Real-Time Forex Settlement to Cross-Border UPI Transactions

New partnership will allow Indian travellers to view live exchange rates and exact rupee payments before completing overseas UPI transactions, enhancing transparency, convenience, and global acceptance of India's digital payment ecosystem.

The National Payments Corporation of India (NPCI) has announced a strategic partnership with HSBC India and JP Morgan Payments to introduce real-time foreign exchange (Forex) settlement for cross-border Unified Payments Interface (UPI) transactions. The initiative is aimed at making international UPI payments faster, more transparent, and easier for Indian users travelling abroad while strengthening UPI's position as a globally accepted digital payment platform.

Under the collaboration, HSBC India and JP Morgan Payments will serve as banking partners, providing live foreign exchange rates through direct Application Programming Interface (API) integration. This will enable customers to instantly view the exact amount payable in Indian Rupees (INR) at the point of sale before authorising a transaction, eliminating uncertainty around currency conversion and exchange rate fluctuations.

The move represents another milestone in NPCI's efforts to expand UPI beyond India's borders and simplify cross-border digital payments for consumers, merchants, and financial institutions.

Real-Time Exchange Rates to Improve Customer Experience

One of the biggest challenges faced by international travellers while making digital payments is the lack of clarity regarding exchange rates and final transaction costs.

The newly introduced solution addresses this issue by providing real-time foreign exchange rates at the moment of payment. Customers will know the precise amount that will be debited from their Indian bank accounts before completing the transaction.

This level of transparency reduces the possibility of unexpected currency conversion charges and helps users make informed payment decisions while shopping, dining, or travelling overseas.

The feature is expected to significantly improve user confidence in cross-border UPI payments.

Simplified Settlement for International Merchants

The partnership also benefits merchants and financial institutions operating outside India.

NPCI stated that international merchants will receive payments directly in their local currencies, while the integrated settlement system will efficiently handle the underlying currency conversion through HSBC India and JP Morgan Payments.

This streamlined settlement mechanism reduces operational complexity, improves payment efficiency, and shortens settlement timelines, making UPI a more attractive payment option for overseas businesses.

As merchant acceptance increases, Indian travellers will gain access to a wider network of establishments that accept UPI payments globally.

UPI Continues Its Global Expansion

UPI has rapidly evolved from a domestic payment platform into an internationally recognised digital payment system.

The platform is already operational in several countries, including Singapore, the United Arab Emirates, Nepal, Bhutan, Mauritius, France, Sri Lanka, Cambodia, and Qatar, enabling Indian travellers to make seamless digital payments using familiar UPI applications.

NPCI International, the wholly owned international subsidiary of NPCI, is actively working to expand UPI's presence into additional markets such as Japan, the Maldives, and Greece, among others.

Each new partnership strengthens India's vision of building a globally interoperable digital payments network that offers fast, secure, and low-cost transactions across borders.

Cross-Border UPI Usage Witnesses Rapid Growth

The international adoption of UPI has accelerated significantly over the past two years.

Cross-border UPI transaction volumes crossed the one million milestone for the first time during FY26, highlighting growing acceptance among both Indian consumers and overseas merchants.

According to available data, transaction volumes increased to 1.48 million during FY26 (up to December 2025), compared with 750,000 transactions recorded during FY25.

Transaction value also registered healthy growth, rising to approximately ₹330.43 crore during FY26 from ₹258.53 crore in FY25.

The growth becomes even more significant when compared with FY24, when international UPI transactions stood at only 37,060 with a transaction value of around ₹19.7 crore.

The sharp rise demonstrates increasing confidence in India's digital payment infrastructure and the growing popularity of UPI as an international payment solution.

Strengthening India's Digital Payments Leadership

The latest collaboration reinforces India's ambition to become a global leader in digital financial infrastructure.

UPI has already transformed the domestic payments ecosystem by enabling instant bank-to-bank transfers, reducing dependence on cash, and promoting financial inclusion across the country.

Introducing real-time foreign exchange settlement adds another layer of convenience, bringing international transactions closer to the seamless experience that Indian consumers already enjoy within the country.

As more banks, payment processors, merchants, and countries integrate with UPI, India's digital payments ecosystem is expected to become increasingly influential in the global financial landscape.

Benefits for Travellers and Businesses

The new solution offers multiple advantages for both consumers and businesses:

Real-time visibility of exchange rates before payment.
Exact INR amount displayed at the time of transaction.
Faster and more efficient cross-border settlement.
Payments settled directly in merchants' local currencies.
Greater transparency with reduced foreign exchange uncertainty.
Enhanced acceptance of UPI across international markets.
Improved convenience for Indian tourists, students, and business travellers.

These benefits are expected to encourage greater adoption of UPI for overseas transactions while strengthening trust in India's digital payment infrastructure.

Outlook

NPCI's partnership with HSBC India and JP Morgan Payments marks another significant advancement in the evolution of cross-border digital payments. By introducing real-time foreign exchange settlement, the initiative addresses one of the key challenges associated with international transactions—currency conversion transparency—while making overseas UPI payments more convenient and predictable.

With international transaction volumes growing rapidly, new countries joining the UPI network, and global financial institutions collaborating with NPCI, the platform is steadily establishing itself as a globally competitive digital payment solution. As India's digital economy continues to expand, initiatives such as this are expected to accelerate the international adoption of UPI and reinforce the country's position as a pioneer in digital financial innovation.