India in Talks to Link UPI With China’s Alipay+ for Cross-Border Payments
What Is India Discussing With Ant International?
India is in talks with Ant International to allow its global payments platform Alipay+ to connect with India’s Unified Payments Interface for cross-border transactions, according to two government sources cited by Reuters. If approved, the arrangement would allow Indian users to pay overseas merchants using UPI in countries where Alipay+ is accepted.
The discussions involve officials from the Indian government and the central bank, as well as Singapore-based Ant International, which was founded by Ant Group and now operates as an independent company. The talks have not been made public, and the sources declined to be identified.
For Indian travellers, the link would remove the need to rely on cards or foreign wallets in many destinations, allowing UPI-based payments abroad through existing merchant networks connected to Alipay+. For India, the proposal fits into a broader push to extend UPI beyond domestic use and support rupee-linked payments overseas.
Investor Takeaway
Why Cross-Border UPI Matters to India
UPI has become the backbone of India’s retail payments system, handling close to 18 billion transactions each month. Domestic success has led policymakers to look outward, focusing on how UPI can support Indian tourists, migrant workers, and overseas businesses that deal with Indian customers.
Cross-border use of UPI is viewn as a way to and reduce reliance on card networks and foreign currencies. By enabling payments in rupees, Indian authorities hope to limit conversion expenses and simplify settlements for users and merchants alike.
India has already linked UPI with payment systems in several countries, mostly in Asia and the Middle East. Partnering with Alipay+ would extend that reach across a much larger network, given the platform’s presence in more than 100 markets and its connections to both local wallets and global merchants.
Security and Geopolitics Remain the Key Constraint
Any approval will depend on security reviews and data secureguards, the government sources told Reuters. Concerns stem largely from Alipay’s historical links to China, even though and operates independently.
“There are sensitivities involved in terms of geopolitical positioning or in terms of securing the country’s digital infrastructure and data because of Alipay’s roots to China,” one of the sources said.
Those concerns are shaped by India’s broader policy stance toward China-linked firms. later than a border standoff in 2020, India imposed tighter investment rules on Chinese investors, and those restrictions are still in place. Since then, deals involving Chinese ownership or backing have faced closer review or delays.
Payments infrastructure sits high on the list of sensitive sectors. Any cross-border linkage involving large volumes of consumer data is likely to face scrutiny from both the finance ministry and the central bank, even if the commercial case appears strong.
Investor Takeaway
How Warming Ties With China Frame the Talks
The discussions come as India and China show tentative signs of easing tensions. Strained relations later than the 2020 border clash sluggished flows of capital, technology, and talent between the two countries, and India tightened checks on China-related investments.
That stance stalled or derailed several high-profile proposals, including a planned $1 billion by BYD. More recently, however, New Delhi has taken small steps toward re-engagement, partly against the backdrop of rising trade pressure from the United States.
Indian Prime Minister Narendra Modi visited China last year for the first time in seven years, holding talks with President Xi Jinping on improving bilateral relations. India also resumed direct commercial flights to China later than a five-year pause and eased visa rules for Chinese professionals.
Within that context, the Alipay+ discussions reflect a cautious reopening of economic channels rather than a wholesale policy change. Payments cooperation offers a limited, consumer-facing test case that can be shaped through controls and phased access.
What Happens Next?
Officials said a final decision would only come later than security and data reviews are completed. India’s finance ministry, the Reserve Bank of India, and the did not comment on the talks, and Ant International also declined to respond to requests for comment.
