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Scan and pay in Japan: UPI coming to Indian travellers

  //travel-leisure.news-articles.net/content/2025/ .. ay-in-japan-upi-coming-to-indian-travellers.html
  Published in Travel and Leisure on Sunday, October 26th 2025 at 3:56 GMT by moneycontrol.com
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UPI Now Scans and Pays in Japan – A Game‑Changer for Indian Travellers

In a landmark move that is set to reshape the way Indian tourists spend abroad, Unified Payments Interface (UPI) will soon be available in Japan, allowing Indians to scan QR codes and settle bills directly from their Indian bank accounts. The announcement, first reported by Moneycontrol, marks the first time a major foreign country has embraced India’s digital payment framework. The initiative is a joint effort between the Indian Ministry of External Affairs and Japan’s Ministry of Economy, Trade and Industry, with leading Indian UPI platforms—Paytm, PhonePe and Google Pay—pioneering the rollout.

How It Works

The new service hinges on QR‑based payments, the same mechanism that powers UPI transactions within India. When an Indian traveller visits a participating shop, cafe or convenience store in Japan, the merchant’s QR code can be scanned using the traveller’s UPI‑enabled app. The app then pulls the amount in Japanese yen (JPY) from the traveller’s Indian bank account, automatically converting the currency at the prevailing exchange rate. No physical cards or cash are required; the transaction is instant, secure, and leaves no paper trail for the merchant.

For the system to work seamlessly, Indian banks need to support real‑time currency conversion and cross‑border transfers. In collaboration with the Reserve Bank of India (RBI), several banks have already signed up to provide the necessary infrastructure. The Ministry of Finance has also announced that transaction fees will be capped, ensuring that Indian travellers do not face exorbitant charges for overseas purchases.

Where It Will Be Available

The pilot phase will launch in major tourist hubs—Tokyo, Osaka, Kyoto, and Yokohama—where the majority of Indian visitors spend the bulk of their money. The list of participating merchants will include high‑street retail chains such as 7‑Eleven, FamilyMart, and Lawson, as well as popular dining spots like Starbucks and local izakayas. Japanese travel guides have already begun listing “UPI‑compatible” cafés in their itineraries, promising an effortless payment experience.

The rollout is scheduled for the second quarter of 2025, with a full national launch expected by the end of the year. Indian travelers can start preparing now by ensuring their UPI app is updated to the latest version and that they have a sufficient INR balance to cover expected spending.

Why It Matters

The introduction of UPI in Japan is a testament to India’s growing influence as a digital payments powerhouse. By enabling direct, real‑time cross‑border transactions, Indian banks will be able to tap into Japan’s bustling tourism economy. For Indian travellers, the benefits are clear:

• Convenience – No need to carry cash, worry about currency exchange counters, or manage multiple cards.
• Security – QR‑based payments eliminate the risk of lost or stolen cards and provide an electronic audit trail.
• Cost‑effectiveness – With capped transaction fees, travellers can avoid high conversion and foreign‑exchange charges that typically accompany overseas card use.

According to a recent study cited in the Moneycontrol article, Indian tourists spend an average of ₹1.8 lakh per trip on dining, shopping, and entertainment in Japan. The ability to pay directly through UPI could significantly reduce the cost of these expenditures, as foreign cards often incur 3–5% transaction fees plus a fixed surcharge.

The Bigger Picture

India’s push to bring UPI to foreign markets is not new. Earlier this year, the government announced similar initiatives for the United Arab Emirates and Qatar, aiming to position UPI as a global payments solution. The Moneycontrol piece also highlighted how the Indian government’s “Digital India” program is expanding beyond domestic borders to include cross‑border payments, digital passports, and e‑visa platforms.

An article linked in the Moneycontrol report (“UPI in UAE – The Future of Digital Payments”) noted that Indian travellers in the UAE already enjoy zero‑fee UPI payments. The Japanese rollout follows this trend, reinforcing the idea that UPI will become a universal payment tool for Indians abroad.

What Indian Banks Are Saying

Several banks have expressed enthusiasm about the partnership. In a statement, HDFC Bank’s head of International Payments emphasized the “strategic advantage” of providing a seamless digital experience for its Indian customers overseas. Meanwhile, State Bank of India (SBI) is working on a dedicated app feature that will show real‑time conversion rates and transaction limits, ensuring transparency for its users.

A recent interview with an SBI spokesperson—linked within the Moneycontrol article—underscored that the bank has already integrated real‑time foreign exchange APIs to support the new UPI functionality. “Our goal is to make cross‑border payments as frictionless as domestic ones,” the spokesperson said.

Potential Challenges

While the prospect is exciting, there are hurdles to overcome. Regulatory approvals in Japan will require robust anti‑money‑laundering (AML) protocols. Both governments have agreed to share transaction data to monitor suspicious activity. Furthermore, Indian travellers will need to be mindful of their banking limits; a sudden spike in overseas spending could trigger a temporary freeze of accounts.

Nevertheless, the consensus among experts remains positive. Digital payment experts quoted in the Moneycontrol article predict that the UPI‑Japan partnership could serve as a blueprint for further collaborations with countries such as South Korea, Singapore, and the United Kingdom.

Conclusion

The introduction of UPI in Japan heralds a new era for Indian travelers, offering a convenient, secure, and cost‑effective way to manage their expenses abroad. By leveraging QR‑based payments, Indian tourists can sidestep the hassles of carrying cash or dealing with foreign card fees. As India pushes its digital payments platform onto the global stage, the partnership with Japan stands as a landmark achievement, signaling a future where UPI is not just an Indian utility but a worldwide payment standard.