Indian travellers heading abroad may soon be free from the familiar hassles of carrying cash, worrying about card acceptance or navigating fluctuating exchange rates. Japan is set to roll out India’s widely used digital payment system, the Unified Payments Interface (UPI), on a trial basis, offering significant relief to Indian tourists. Under the pilot project, Indian visitors in Japan will be able to scan QR codes and make payments directly through UPI apps linked to their Indian bank accounts.
The move marks another milestone for India’s digital payments ecosystem, which has rapidly gained global recognition for its scale, reliability and ease of use. For Indian tourists, the development promises a smoother travel experience, eliminating the need for currency exchange counters and reducing dependence on international debit or credit cards.
The UPI trial comes at a time when Japan has witnessed a sharp rise in the number of Indian visitors. In 2025, over 3.15 lakh Indian tourists travelled to Japan, placing India among the fastest-growing source markets for Japanese tourism. Industry observers believe that the availability of a familiar and trusted digital payment option could further encourage spending by Indian travellers and enhance overall convenience.
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The pilot project is being implemented through a collaboration between Japan’s IT services firm NTT Data and India’s National Payments Corporation of India (NPCI). The two entities are working to explore technical solutions that will enable interoperability between Indian and Japanese payment systems, allowing secure cross-border digital transactions. If the trial proves successful, the system could be expanded to cover more merchants and locations across Japan.
UPI is a real-time payment system that allows instant money transfers through mobile applications. Users can make payments by scanning QR codes or by using UPI IDs or mobile numbers, without sharing bank account details. In most cases, transactions are completed without additional charges. In India, UPI has transformed everyday commerce, enabling cashless payments at neighbourhood shops, street vendors, malls and online platforms alike.
The introduction of UPI in Japan is also expected to benefit local businesses. Easier payment options for Indian tourists could translate into higher spending on shopping, dining and services. For Japanese merchants, the trial offers an opportunity to tap into a growing tourist segment while adapting to changing consumer payment preferences.
Travel and tourism experts say the initiative will give a fresh push to cashless travel. Indian tourists often face issues such as high foreign exchange conversion fees, card transaction failures or temporary card blocks while abroad. A UPI-based payment option could significantly reduce these challenges, making transactions quicker and more transparent. At the same time, it is expected to strengthen economic and technological ties between India and Japan.
UPI was launched in India in 2016 as a government-backed initiative to promote digital payments. Over the past decade, it has reshaped the country’s financial landscape. Today, billions of transactions are processed through UPI every month, making it a cornerstone of India’s digital economy and a global case study in scalable financial technology.
The decision to trial UPI in a technologically advanced market like Japan underscores growing international confidence in India’s digital infrastructure. Several countries have already shown interest in adopting or linking with UPI-like systems to facilitate cross-border payments.
Experts believe that if the Japan pilot delivers smooth and secure transactions, it could pave the way for UPI’s expansion into more countries in the coming years. Such a move would not only make overseas travel easier for Indians but also position India’s digital payment model as a global benchmark, extending its influence well beyond national borders.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
