The Unified Payments Interface (UPI), India’s real-time payment system, is expanding globally. Trial operations for UPI Japan have commenced, marking a new era of digital cooperation.
The Unified Payments Interface (UPI), India’s real-time payment system, is expanding globally. Following integrations in Bhutan, France, Singapore, Sri Lanka, and the UAE, trial operations for UPI Japan have commenced. This initiative, a result of a Memorandum of Understanding between NPCI International Payments Ltd (NIPL) and NTT DATA Japan, aims to provide convenient and secure digital transactions for Indian tourists in Japan, enhancing global financial interoperability.
What is UPI? India’s Digital Payments Powerhouse Goes Global
UPI, the Unified Payments Interface, is India’s instant real-time payment system, developed by the National Payments Corporation of India (NPCI) and launched in 2016. It facilitates billions of daily transactions, enabling users to link multiple bank accounts to a single mobile app for instant person-to-person (P2P) and person-to-merchant (P2M) payments via Virtual Payment Addresses (VPA) or QR code scans.
UPI’s Global Footprint
- 01 Bhutan: First to adopt UPI standards for QR code deployment (July 2021).
- 02 France: First European country, launched at the Eiffel Tower (Feb 2024).
- 03 Singapore: PayNow-UPI linkage for instant low-cost transfers (Feb 2023).
- 04 UAE: Planned rollout for NRIs and residents via Mashreq Bank’s NeoPay.
Why UPI Japan Matters
The trial operations of UPI in Japan during fiscal year 2026 mark India’s first formal entry into East Asia’s digital payment ecosystem. This expansion is driven by a partnership between NIPL and NTT DATA Japan, formalized through a Memorandum of Understanding signed in October 2025.
For Indian Travelers
Unparalleled convenience, eliminating the hassle of currency exchange or high foreign transaction fees. Visitor numbers increased by 35% in 2025.
For Japanese Merchants
Integration with NTT DATA’s network provides access to a rapidly growing segment of international customers, supporting Japan’s cashless drive.
Japan’s Cashless Journey
Japan’s digital payment landscape is characterized by technological advancement alongside a cultural preference for cash. While efficient contactless IC cards like Suica and Pasmo are common, widespread everyday cashless adoption has been slower but is rapidly changing.
Tokyo Digital Pulse
Japan’s payment market is projected to reach USD 1,363 billion by 2031.
How UPI Japan Works
The rollout of UPI Japan requires technical integration between India’s UPI platform and Japan’s payment infrastructure. Indian tourists will scan QR codes at NTT DATA-acquired merchant locations using their UPI-enabled mobile applications.
QR Code Generation
NTT DATA systems generate UPI-compatible QR codes at merchant points across Japan.
API Communication
The UPI app initiates payment via API architecture to the NPCI switch for cross-border processing.
Data Translation
Transaction data is translated into CAFIS (Credit And Finance Information System) network formats.
“UPI will broaden payment choices for Indian tourists and support Japanese businesses. We anticipate significant growth in digital cooperation between our nations.”— Masanori Kurihara, Head of Payments, NTT DATA
The Road Ahead: Benefits and Challenges
Opportunities
- • Unparalleled convenience for tourists
- • Transparent currency conversion
- • Reduced reliance on physical cash
- • Strengthened Fintech bilateral ties
Challenges
- • Complex regulatory alignment
- • Deep-rooted cultural cash preference
- • Evolving cybersecurity threats
- • Competition from local providers
The trial operations of UPI in Japan represent a pivotal moment in global digital payments. This partnership between NIPL and NTT DATA promises secure, convenient, and seamless transactions for Indian tourists, bolstering economic ties and cultural exchange.
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