India’s Unified Payments Interface (UPI) is expanding to Japan, with NTT Data partnering with the National Payments Corporation of India (NPCI) for fiscal year 2026 trials. This strategic move targets 315,000 Indian tourists who visited Japan in 2025—a 35% year-over-year surge—allowing seamless QR code payments directly from Indian bank accounts.
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UPI Japan Expansion: Key Details
The collaboration aims to connect Japanese and Indian payment networks, enabling Indian travelers to use familiar UPI apps at Japanese merchants without currency conversion hassles or foreign transaction fees.
| Expansion Metric | Details |
|---|---|
| Partner Company | NTT Data (Japanese IT services) |
| Trial Period | Fiscal Year 2026 |
| Indian Tourists (2025) | 315,000 (↑35% YoY) |
| UPI Countries | 8 (Bhutan, Singapore, France, UAE, Sri Lanka) |
| Domestic Transactions (FY24) | 185.8 billion (↑42%) |
| India In-Store Share (2024) | 58% |
| Projected Share (2030) | 76% |
Why Japan Chose UPI
McKinsey projects Indian outbound trips rising from 13 million (2022) to 90 million (2040), driven by growing middle-class incomes. Japan recognizes this demographic shift as a major economic opportunity, making UPI integration strategically vital for tourism revenue.
NTT Data already operates payment terminals for 6 million Indian businesses across India and Southeast Asia, providing established infrastructure for UPI adoption. The IMF called UPI the “world’s largest real-time payment system” in June 2025, validating its scalability and reliability.
UPI’s Global Footprint
Launched in 2016 as a government initiative, UPI revolutionized digital payments through its shared-platform design. The system allows multiple payment apps to use a single QR code standard, eliminating fragmentation. Since 2021, NPCI exported UPI to eight countries and assists Peru and Namibia in developing similar rails.
US payments company Worldpay forecasts cash transactions in India dropping from 15% (2024) to just 7% (2030), with UPI dominating 76% of in-store payments. This domestic success positions UPI as a compelling international standard for digital infrastructure.
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FAQs
When will UPI launch in Japan?
NTT Data and NPCI are conducting trials in fiscal year 2026, with commercial rollout expected later in the year.
How many countries currently accept UPI payments?
Eight countries including Singapore, France, UAE, Bhutan, and Sri Lanka accept UPI, with more nations developing similar systems.
