NPCI International Payments Ltd (NIPL) has inked a Memorandum of Understanding (MoU) with NTT DATA Japan Corporation to introduce Unified Payments Interface (UPI) acceptance across the Japanese market. Announced on Tuesday, this collaboration leverages UPI's global popularity to allow Indian tourists to make effortless payments by simply scanning QR codes at merchant outlets using their existing UPI apps, eliminating the hassles of currency exchange or foreign cards.

The partnership establishes a strategic framework for integrating UPI into Japan's robust payments infrastructure, beginning with merchants acquired by NTT DATA. As operators of CAFIS®, Japan's premier card payment processing network handling billions of transactions annually, NTT DATA brings unparalleled reach and reliability. "This MoU marks a pivotal advancement in cross-border fintech, enhancing convenience for the growing influx of Indian visitors," stated NPCI in its official release. Joint efforts will focus on technical assessments, merchant onboarding, and system interoperability to ensure smooth rollout.

Ritesh Shukla, MD & CEO of NPCI International, hailed the agreement as foundational for UPI's expansion in Asia. "By enabling UPI in Japan, we're not just simplifying payments; we're bridging economies and cultures through technology," Shukla remarked. This initiative aligns with India's digital public goods export strategy, following successful UPI deployments in countries like France, UAE, and Singapore, where millions of transactions have been processed seamlessly.

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Tourism data underscores the timely relevance: From January to August 2025, Japan welcomed over 208,000 Indian visitors, reflecting a 36% surge from the previous year, driven by eased visa norms and cultural attractions like cherry blossoms and tech hubs. Post-pandemic recovery has boosted bilateral ties, with India-Japan trade exceeding USD 20 billion in 2024, encompassing electronics, automobiles, and pharmaceuticals. UPI acceptance could further stimulate this by reducing friction in retail, hospitality, and transport sectors, potentially adding millions in transaction volume.

Beyond convenience, the MoU promises broader implications for fintech innovation. NIPL and NTT DATA plan to explore real-time payment gateways, data security protocols compliant with Japan's stringent regulations, and potential rupee-yen settlements to minimize forex costs. This could pave the way for Japanese tourists using local systems like PayPay in India, fostering reciprocal digital ecosystems. Industry experts predict this as a catalyst for UPI's adoption in other high-tourism destinations, bolstering India's soft power through financial technology. As implementation phases unfold, travelers can anticipate a frictionless experience, scanning and paying in seconds, much like at home.

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