In a significant development for Indian tourists visiting the United Arab Emirates (UAE), the NPCI International Payments Limited (NIPL) has announced a partnership with Magnati, a leading payment solutions provider in the Middle East. This collaboration aims to expand the QR-based merchant payment network in the UAE enabling a wider range of merchants to provide Unified Payments Interface (UPI) as a payment method to Indian travellers.
The partnership will initially be enabled at Dubai Duty-Free, catering specifically to Indian tourists. It will later be expanded to other sectors such as retail, hospitality, transport, and supermarkets, according to an NIPL statement. This partnership is expected to provide seamless payment options to more than 12 million Indians travelling to Dubai and the UAE annually.
Ritesh Shukla, Chief Executive Officer (CEO), NIPL, stated, This aligns with our vision of providing Indians with a global digital payments acceptance network and enhancing their payment experience abroad. Furthermore, it paves the way for broader economic and cultural connections between India and the UAE.
Salim Awan, managing director of institutional payments solutions at Magnati, echoed these sentiments, stating that the partnership aims to bolster digital payments, facilitate cross-border payments, and provide a seamless payment experience catering to Indian travellers and NRIs. He added, This collaboration exemplifies our commitment to innovative digital solutions and creating value through a globally connected ecosystem.
In 2023, India accounted for the highest number of visitors to Dubai, recording as many as 11.9 million travellers, followed by Saudi Arabia with 6.7 million and the United Kingdom with 5.9 million visitors. This partnership is expected to further enhance the convenience for Indian travellers, who form a significant portion of the tourist population in the UAE.
UPI is recognised as one of the world's most successful real-time payment systems, processing over 16 billion transactions in December 2024 alone. UPI payments are accepted in seven countries, including Bhutan, Mauritius, Nepal, Singapore, Sri Lanka, and France. Over 20 apps such as BHIM, PhonePe, Paytm, and Google Pay, facilitate international transactions.
The digital transformation of financial transactions, which started as a small stream of transactions, has now turned into a roaring river of digital money, from 20.7 billion (bn) transactions in FY18 to 187.4 bn in FY24. This impressive compounded annual growth (CAGR) of 44% reflects strong government support, robust technological infrastructure, and a consumer base eager to embrace digital solutions.
The partnership between NIPL and Magnati is a significant step in the global expansion of UPI, which has already been accepted in several countries. This move will not only enhance the convenience for Indian travellers but also pave the way for a globally connected digital payments ecosystem. It is a testament to the vision of providing Indians with a global digital payments acceptance network and enhancing their payment experience abroad.
