One97 Communications Limited (OCL), the parent company behind the Paytm brand, has announced the launch of its new UPI International feature, enabling Paytm users to make Unified Payments Interface (UPI) payments at select international locations. This new service makes it easier for Indian travelers to make secure, cashless payments at destinations where UPI is accepted. The feature is available in a range of popular international locations, including the UAE, Singapore, France, Mauritius, Bhutan, and Nepal, allowing users to shop, dine, and explore without the need for cash or foreign credit cards.

“We’re excited to introduce UPI International to make it even more convenient for Indian travelers to enjoy seamless, cashless payments while abroad. With this feature, Paytm users can make payments in countries like the UAE, Singapore, France, Mauritius, Bhutan, and Nepal, where UPI is now accepted,” said a Paytm spokesperson. This expansion reflects Paytm’s commitment to improving the digital payments ecosystem, ensuring that users can enjoy the same ease of use internationally as they do at home.

Seamless Setup and Use

Setting up UPI International on the Paytm app is quick and easy. Users simply need to activate the service once, linking it to their bank account. After activation, the app automatically prompts users to use UPI when scanning a UPI-enabled QR code abroad. The process is designed to be intuitive, allowing users to pay effortlessly while traveling.

Travelers also have the option to choose a usage period for UPI International, ranging from 1 to 90 days, depending on the length of their trip. This flexibility ensures that users can tailor the service to fit their travel schedule. Furthermore, users can deactivate the service at any time, offering enhanced control over their transactions. This feature is particularly useful for preventing accidental payments to foreign merchants once users have returned to India, ensuring that they only make payments when they intend to.

Transparency and Control

Paytm has also incorporated full transparency into the payment process. During transactions, users can view the applicable foreign exchange rates and any conversion fees charged by their bank, ensuring that there are no hidden costs or surprises when completing the payment. This added layer of clarity helps users make informed decisions while managing their finances abroad.

In addition, UPI International offers travelers the ability to easily track their spending, providing them with greater control over their budget. This makes it easier for users to stay within their limits and avoid overspending while traveling.

Enhanced Payment Experience Across International Destinations

With UPI International, Paytm users can now enjoy a smoother and more convenient payment experience at iconic international destinations. Whether they’re shopping in the vibrant malls and markets of Dubai, exploring bustling street markets in Singapore, enjoying the beautiful beachside shops in Mauritius, or visiting artisanal craft stores in Bhutan and Nepal, travelers can make secure, cashless payments through the Paytm app wherever UPI is accepted. This enhances the overall travel experience, eliminating the need to carry cash or constantly convert currencies.

“As the holiday season approaches, we’re confident that this new feature will make international travel even more convenient for our users. This launch is another step towards enhancing the Paytm ecosystem and providing our customers with a seamless, digital-first payment solution, no matter where they are in the world,” the Paytm spokesperson added.

Managing Finances with Ease

In addition to the UPI International feature, Paytm recently launched the UPI statement download feature. This new tool allows users to access detailed transaction records in a clear and user-friendly format. This feature is particularly helpful for travelers, as it helps them track their spending, monitor exchange rates, and keep a record of all their international transactions. This functionality supports effective budgeting and financial management, allowing users to stay on top of their expenses during and after their trip.

Overall, the introduction of UPI International and other recent features highlights Paytm’s commitment to making digital payments more accessible and convenient for Indian users, both at home and abroad. As digital payment adoption continues to grow, Paytm is positioning itself as a leader in providing seamless, borderless payment experiences for Indian consumers across the globe.

PhonePe and Google Pay maintain dominance in UPI market. The National Payments Corporation of India (NPCI) has not yet decided whether it will implement a 30% market share cap for payment platforms offering Unified Payments Interface (UPI) services by the end of 2024. This statement was made by NPCI’s Managing Director and CEO, Dilip Asbe, on Tuesday. Asbe clarified that a decision on the matter has not been made yet, adding, “The decision is yet to be taken. I don’t think I can comment on that (imposition of 30% cap).”

Asbe also commented on the increasing number of UPI app providers entering the market. He mentioned that many leading banks, including the State Bank of India (SBI) with its Yono app, have upgraded their platforms to integrate UPI functionality. “We have started seeing more app providers coming into play. Now, all leading banks, including SBI (Yono app), have modified their apps to be UPI apps. Obviously, it is going to take time, we are aware of that,” he added.

Market Domination

As of October, PhonePe and Google Pay continue to dominate the UPI market, holding a combined share of over 85% of the total transaction volume, according to data shared by NPCI. Paytm, the third-largest payment app by transaction volume, had a market share of 7% during the same period, while apps ranking below the third position had less than 1% of the total market share. This indicates the significant market power that PhonePe and Google Pay hold in the UPI space, with the top two players continuing to vastly outpace their competitors in terms of transaction volume.

Potential 40% Market Share Cap

Reports from TechCrunch suggest that NPCI is considering increasing the market share cap for UPI operators, possibly raising the limit to 40% or higher. This would apply to the market share that any single UPI provider could hold, particularly as the top two players continue to dominate. Originally, NPCI proposed a 30% cap on the market share for third-party UPI apps in November 2020. This cap was introduced as a measure to promote competition and prevent market monopolization. The deadline for implementing the cap, which was initially set for December 2022, has since been extended to December 2024, reflecting the complexity of implementing such a regulatory measure in a rapidly growing digital payments ecosystem.

UPI Growth and Record Transaction Volume

India’s UPI system achieved a major milestone in October, setting a new record with a total of 16.58 billion transactions, valued at ₹23.50 lakh crore. This surge was largely driven by the festive season, which boosted consumer spending and contributed to a 45% year-on-year increase in UPI transactions. The growth in UPI usage reflects its increasing importance as a primary mode of payment in India, with both person-to-person (P2P) and person-to-merchant (P2M) transactions continuing to rise steadily.

While P2P transactions account for the majority of the transaction value, the growth in P2M transactions is also notable. Leading banks in the UPI ecosystem, such as the State Bank of India (SBI), HDFC Bank, and YES Bank, are the top remitters and beneficiaries in the system, playing a crucial role in driving the volume and adoption of UPI.

The continued dominance of major payment platforms like PhonePe and Google Pay, along with the potential changes to market share caps, highlights the dynamic and evolving landscape of the digital payments industry in India. The future of UPI will likely depend on how NPCI addresses the competitive balance in the market, particularly as more players join the ecosystem and consumer adoption grows further.

Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, has called for a transformative “UPI moment” for the Electric Vehicle (EV) charging ecosystem. He highlighted the need for an all-in-one Battery Electric Vehicle (BEV) charging application that works seamlessly at home, in offices, around town, and on the road to accelerate EV adoption. Drawing parallels to India’s Unified Payments Interface (UPI), Iyer proposed the creation of a unified app integrating multiple charging points, enabling users to charge vehicles and pay effortlessly across the country.

“The charging infrastructure is expanding with private players entering the space. However, the biggest challenge is the reliance on multiple apps for vehicle charging. While there are aggregators, the process remains cumbersome,” Iyer said during a fireside chat at the Green Bharat e-Mobility Summit, organized by Network18 in collaboration with Ola Electric Mobility. He emphasized the importance of a policy framework to streamline the ecosystem, allowing for a single app to locate chargers, book slots, and facilitate seamless payments.

Iyer noted that such an approach would alleviate the challenges associated with EV charging and cited the example of the Mercedes Me app offered to EV customers overseas. He added, “If a car can locate the right charger, book an appointment, and make payments on its own, the entire experience becomes seamless. With India’s strong digitalization push, the country has the potential to create a global charging framework.”

The Mercedes-Benz India head also addressed broader policy challenges, including India’s two-tier tax structure—GST and state road taxes, which vary between 18% and 20%. He urged the government to adopt a standardized EV policy, offering support until EVs achieve a significant market share, such as 30% of total sales. “Without consistent taxation policies, EV penetration will remain limited,” he stated.

Iyer further underscored the automotive industry’s responsibility to decarbonize, revealing the company’s ambition to achieve an all-electric fleet in select markets by 2030. However, he acknowledged that customer adoption rates remain slow, pointing to the need for coordinated efforts from governments, industry stakeholders, and consumers.

He also highlighted Free Trade Agreements (FTAs) and reduced taxes on premium cars as avenues to boost EV exports from India. “To build world-class cars adhering to global standards, we need an open trading environment and a supportive taxation structure. This would enable scale and create opportunities for India to become an export hub,” he explained.

Finally, Iyer noted the instrumental role of Mercedes-Benz India’s R&D center in Bangalore in shaping the company’s global EV strategy. “Our software-defined cars and proprietary operating system are being developed by our team in Bangalore. The center is also contributing to AI-driven battery management systems and advanced safety technologies,” he said.