India is one of the fastest-growing digital economies in the world, with over 850 million internet users and a booming e-commerce & service sector. At the heart of this transformation is the Unified Payments Interface (UPI)—a homegrown, real-time payment system that allows people to transfer money instantly using their mobile phones. For international businesses, this presents a massive opportunity. Whether you’re selling handmade goods from Thailand, offering design services from Europe, or running a SaaS product from the US, enabling UPI payment gives you direct access to Indian customers in a way that feels familiar and seamless to them. It removes the friction of high-fee card transactions or complicated bank wires, making it easier to receive international payment in Indian Rupees (INR).
Platforms like PayU International Payments now allow businesses around the world to accept UPI from Indian customers and settle the funds in their local currency. The ability to accept UPI payments can streamline the buying process, reduce drop-offs, and boost your conversion rates. Let’s understand in detail how your international business can get started with UPI.
| Table of Contents Why consider accepting UPI payments Challenges faced by International Businesses in accepting UPI payments Key Features of PayU’s Cross-Border Payment Solution How to Integrate PayU’s UPI Payments for Cross-Border Transactions Benefits of Using PayU for International Businesses Conclusion |
Why your international business should consider accepting UPI payments?
By enabling UPI international payment, you’re essentially removing friction for your Indian customers and making the purchase journey smoother.
Wider customer reach: UPI is India’s most preferred payment method, with over 13 billion monthly transactions.
Higher conversion: Offering a familiar and trusted payment method reduces drop-offs at checkout.
Fast settlements: UPI transactions are real-time, leading to quicker customer confirmations.
Cost-effective: UPI payments often come with lower transaction fees than international cards or wire transfers.
Challenges Faced by International Businesses in Accepting UPI Payments
While enabling UPI international payment is straightforward with the right tools, there are some real challenges you might face:
Regulatory Compliance
Cross-border payments from India are regulated by the Reserve Bank of India (RBI) under FEMA guidelines. Many global gateways don’t have the necessary permissions to process Indian UPI transactions for international merchants. That’s why choosing RBI-compliant international payment gateways like PayU International Payments is important.
Limited Gateway Options
Not every payment gateway that supports international transactions also supports UPI. In fact, most global players (like PayPal) do not allow Indian customers to pay via UPI. This limits your options and makes partner selection more critical.
Currency Conversion Delays
Some platforms may hold payments for longer due to manual currency conversion processes, especially for smaller businesses or newer accounts. This can delay settlements and affect cash flow.
Technical Integration Issues
Integrating UPI into a non-Indian platform may require technical tweaks, especially if your website doesn’t support INR as a currency. Thankfully, many gateways offer no-code options and plugins to solve this.
Customer Awareness
Even though UPI is common in India, some customers may hesitate to make UPI payments to international websites due to trust or confusion over the payment experience. Displaying a trusted payment partner’s badge and offering customer support can help resolve this.
Key Features of PayU’s Cross-Border Payment Solution
International businesses can start accepting payments from Indian customers without setting up a local business entity or bank account. This is particularly beneficial for sectors like SaaS, digital goods, and gaming.
Support for Local Payment Methods
PayU enables acceptance of popular Indian payment methods, including:
1. UPI (Unified Payments Interface)
2. Net Banking
3. Credit and Debit Cards
4. Wallets
This broad acceptance helps reduce cart abandonment and enhances the customer payment experience.
Businesses can accept payments in over 130 currencies, allowing customers to pay in their local currency while receiving settlements in their preferred currency.
Efficient Settlements
Funds collected in INR can be settled to international bank accounts in major currencies like USD, EUR, and GBP within two business days (T+2).
For subscription-based services, PayU supports UPI Autopay, enabling automated recurring payments. Integration involves setting up a mandate registration flow, which includes collecting necessary customer details and configuring billing cycles.
How to Integrate PayU’s UPI Payments for Cross-Border Transactions
Sign Up: Create an account on PayU and complete the required Know Your Customer (KYC) verification.
Enable International Payments: Request activation of international payment methods like UPI.
Integrate Payment Gateway: Utilize PayU’s APIs or plugins to integrate the payment gateway into your website or application. PayU offers comprehensive developer documentation to facilitate this process.
Go Live: After thorough testing, activate the payment gateway to start accepting payments from your Indian customers.
Benefits of Using PayU for International Businesses
1. Comprehensive Payment Options: Access to a wide range of payment methods preferred by Indian consumers.
2. Quick Market Entry: Start selling in India without the complexities of setting up a local entity.
3. Secure Transactions: PayU ensures safe and secure transactions with advanced encryption and fraud prevention tools.
4. Analytics and Dashboard: Gain insights into your transactions and customer behavior through PayU’s analytics tools.
Conclusion
For any international business eyeing the Indian market, enabling UPI is no longer just a nice-to-have—it’s a strategic advantage. With the right tools, such as PayU International Payments, you can offer Indian customers their most preferred payment method while ensuring timely, compliant, and secure settlements to your global bank account. As UPI continues to grow and evolve, staying ahead of the curve with smooth UPI integration and smart international payment gateways can open up new opportunities for your business.
