India's UPI Expands to Boost Financial Inclusion and Influence Global Markets

India's Unified Payments Interface (UPI) is poised to revolutionize financial inclusion by integrating credit lines for underserved populations and extending its digital payment model globally.

The National Payments Corporation of India (NPCI) is enhancing UPI to link various credit lines, aiming to provide formal credit access to small businesses and vendors. Concurrently, NPCI is collaborating with international partners to export UPI's successful framework to countries in Africa and South America.

Launched in 2016 by NPCI, UPI facilitates instant inter-bank transactions via mobile devices. By July 2025, it processed over 600 million transactions daily. Bank account ownership in India rose to 89% in 2024, yet only 15% of the population accessed formal credit in the previous year.

NPCI is enabling banks to link credit lines backed by assets like gold and property to UPI, allowing users to access these funds for transactions or withdrawals. NPCI has signed agreements with the central banks of Peru and Namibia to develop UPI-like systems, with launches expected by early 2027. PayPal announced 'PayPal World,' a cross-border payments platform integrating with UPI, enhancing its international presence.

Ritesh Shukla, CEO of NPCI International Payments Ltd, emphasized that integrating UPI with PayPal World will significantly enhance UPI’s global footprint.

Linking credit lines to UPI could provide underserved populations with easier access to formal credit, potentially reducing reliance on informal borrowing. Enhanced credit access may empower small businesses, stimulating broader economic development. Exporting UPI's model positions India as a leader in digital payment solutions, potentially influencing global financial systems.

India's strategic enhancements to UPI, both domestically and internationally, underscore its commitment to financial inclusion and its ambition to shape the future of global digital payments.