Synopsis – Indian tourists may soon use UPI in Japan after NPCI International finalized a deal with NTT DATA Japan to enable UPI acceptance at merchant locations across the country.

India’s landmark digital payment system, UPI, will be available in Japan next year thanks to a new partnership between NPCI International Payments Ltd. (NIPL) and NTT DATA Japan. This, of course, means that Indian travelers will now be able to make payments in Japan using their preferred Indian UPI Apps and avoid the inconvenience of currency exchange. 

Who Are They? 

NPCI International Payments Ltd. (NIPL): The international and cross-border arm of the National Payments Corporation of India, the organization behind the remarkable UPI technology. 

NTT DATA Japan: The owner of CAFIS, an extremely large payments network in Japan with millions of local merchants onboard.

What Will Happen? 

The integration will allow Indian travelers to use their preferred UPI Apps (such as PhonePe, Paytm and Google Pay) in Japanese stores and restaurants. 

Payments are made by scanning the unique QR code, similar to how they are used in India, while NTT DATA manages the merchant integration. 

Transaction amounts are settled instantaneously, with amounts debited in INR, and automatically converting the payment into Japanese Yen.

Why This is Important For Indian Tourists

No Currency Tension: Indian travelers to Japan will no longer have to exchange currency or depend on international cards to settle bills; in fact, they will simply process payments directly via familiar apps from their Indian bank account.

Faster, More Secure, Cheaper: Bypassing international card fees, in addition to minimizing the risk of losing cash, and definitely bypassing delayed transactions will make making reservations, shopping, hotel or dining payments truly simple.

More Transparent Spending: Each payment and account conversions will have instant transparency of the user’s app, supporting easier and trackable travel budgets.

Also read: Top 10 UPI Apps with Highest Transactions in September 2025; See Who Leads the Chart

Japan’s Interest In The UPI Model Is Growing

Interest in QR Codes: Japanese establishments are always excited to experiment with QR-based payment systems realizing its influence on India’s Digital Economy.

The UPI Influence: The UPI success and recent efforts to partner with other nations (Singapore, UAE, France), highlighted Japan’s willingness to adopt such a system to enrich the experiences of visitors to Japan while supporting their vision for a newer tourism economic model.

Merchant Benefits: It will streamline customers and almost guarantee eastern India will be a growing tourist segment as an additional revenue line.

Where is UPI Already In Action?

UPI is in action or in the process of launching in Singapore (with PayNow), UAE, France, Mauritius, Bhutan, Sri Lanka, Maldives, Qatar, and Nepal.

Globalization of NPCI

NPCI International is establishing new partnerships, with the goal of making UPI the world’s platform for real-time digital payments, facilitating seamless travel and remittance.

Each new country expands UPI’s adoption and enhances India’s digital clout abroad.

List of Countries where Indians can Pay through UPI

CountryHighlightsBhutanFirst country to accept UPI through the BHIM app for QR-based payments.FranceAccepted at select merchants in major cities, with a symbolic launch at the Eiffel Tower.MauritiusUPI and RuPay card acceptance is supported at partner stores and service providers.NepalIntegrated with Fonepay for payments at local businesses and restaurants.SingaporeLinked with its PayNow system for seamless cross-border payments at numerous merchants.Sri LankaUPI is accepted by select merchants, easing travel and trade payments.UAEAvailable at shopping spots, restaurants, and popular tourist destinations.QatarRecently added to the list, starting with outlets like Qatar Duty Free.

Potential Economic and Tourism Upside

Boost Indian Tourism: Ease of spending will spur the 225,000 Indian travelers coming to Japan annually (up +36% YoY in 2025) to travel more to Japan and spend more when they arrive.

Strengthening Bilateral Ties: Frictionless payments will strengthen our bilateral ties, while also enhancing opportunities for cultural exchange and trade/investments in the future.

Regional Ripple Effect: Adoption of UPI by Japan – as the leader of innovation in Asia – will prompt many countries in East and Southeast Asia to consider similar relationships and stimulate the development of QR and digital payment infrastructure and adoption across the continent.

Conclusion 

The expansion of UPI into Japan is another exciting development in India’s payment systems revolution. As innovation and borders decouple across the payment landscape for digital money, the partnership sets an expectation of smart, travel-friendly and inclusive forex-focused financial technology.

Written by Rachna Rajput