UPI Payments: Essential Info for Indians in UAE and Tourists

Post by : Dr. Amrinder Pal Singh

UPI Payments in the UAE: Everything Indians and Tourists Need to Know

A digital payment network is being rolled out across the UAE, making it easier for Indians traveling to Dubai to make instant payments using mobile phones linked to their bank accounts back home.

The QR-code based Unified Payments Interface (UPI) is the driving force behind the digital payment platform in India.

Immersely popular in India, where about 400 million people use the platform, UPI transactions reached a value of $2.2 trillion last year, according to the National Payments Corporation of India (NPCI) that launched the platform.

The next goal for this real-time payment network is to extend this convenience and reduce the use of cash across global travel routes frequented by Indians, as well as in countries where they have settled.

India ranks as the number one source of tourists arriving in the UAE. More than 2.2 million Indian tourists visited last year, and over 3.5 million Indians live in the Emirates, making them the largest expatriate group in the country.

Opening a convenient payment system for tourists from a country that accounts for the largest number of arrivals into the UAE is expected to boost spending across travel, tourism, and retail sectors.

What is UPI? Launched in 2016, UPI has simplified payments by allowing people in India to scan QR codes with their phones to make payments to small stores, street vendors, and hawkers.

Already operational in some locations in Dubai, Indian tourists will soon be able to make payments without carrying cash or converting their money to dirhams as the payment system gains wider acceptance.

They can pay in rupees from their Indian account using UPI-enabled payment points being introduced in over 60,000 stores across the Emirates in the coming months.

Indians living in the Emirates can also scan QR codes with their UAE mobile numbers linked to their Indian bank accounts.

Displacing Cash The UAE joins countries such as Singapore, Sri Lanka, Mauritius, and France – popular destinations for Indian tourists – where UPI payments are accepted.

“We are focused on Indian tourists traveling to the UAE. We want to create, design, and add value for them,” said Mr. Shukla.

“We believe in the power of the mobile phone and want to offer them a friendly, simple, and advanced payment option.”

NPCI International Payments Limited has partnered with Network International, a leading digital commerce network in the Middle East and Africa, and Mashreq Bank, one of the UAE’s leading financial institutions, to expand UPI payments.

The Indian company aims to deepen its presence so the QR-code systems will be adopted in most stores frequented by Indian tourists.

“We are in discussions with another player and hope to go live in the next six to nine months,” Mr. Shukla said.

“Then we will have coverage of about 85% to 90% of the market.”

“We are also in talks with major retail groups in the UAE to ensure UPI is rolled out across merchants relevant to Indian tourists.”

Where can it be used in the UAE? Hotels, stores, restaurants, and tourist spots will gradually display signs in the coming months indicating where QR-code based payments are accepted.

The Al Maya supermarket chain has already integrated the Indian payment system across its 50 stores in the UAE.

“I’m excited for the retail industry as this will enhance tourist spending,” said Kamal Vachani, group director.

“The number of Indian tourists is high, and this will make it convenient for them, so we are happy to accept UPI in our supermarkets.”

He plans to invite Indian influencers to the stores to demonstrate the payment system, aiming to attract more visitors.

Indian tourists in Dubai have already started using the system and are posting videos online about its convenience.

“I felt like I was shopping in India. I saw that UPI was accepted in a shop and restaurant near my hotel, so I scanned the QR code, and the payment for chocolates and my meal was done,” said Deepti Yagnik from Nagpur in western India.

“It’s great because you may not have your card, but you have your phone, and that’s all you need to scan and pay.”

Who can use UPI in the UAE? Indian tourists and residents in the UAE with bank accounts in India can use the UPI network.

Indians residing and working in the UAE can use UPI by linking their non-resident accounts – non-resident ordinary (NRO) and non-resident external (NRE) – in Indian banks with a UPI-enabled mobile application.

This means that Indian NRE accounts, where they deposit foreign earnings in India, and NRO accounts, where they keep rupee-denominated earnings from India, can be used for UPI transactions.

NRIs must register their UAE mobile number with their bank. This number will be used by UPI apps for verification and security.

How can you use it? Look for UPI-QR code signs in stores, scan the code, enter the payment amount, check the details, enter the UPI pin, and complete the transaction.

Indian travelers can use a UPI app, applications of Indian banks like ICICI Bank’s iMobile or HDFC’s PayZapp, and popular third-party apps like Bhim, PhonePe, or Google Pay in the UAE.

Mashreq has integrated UPI-enabled apps like PhonePe with its payment platforms.

NRIs should first check if their non-resident account with their bank in India supports UPI transactions.

Using their UAE mobile number linked with their NRO or NRE account, they can download a UPI-enabled app from Apple’s App Store or Google Play.

Their overseas number will be verified, and they will receive a unique UPI ID, after which they can set their PIN. Their India account details will then be linked with their mobile number.

At this point, they are ready to make purchases in the UAE or India.

What can Non-Resident Indians use it for? NRIs can also use their UAE mobile number to pay utility bills in India.

They can scan any Indian QR code to make purchases, access millions of Indian stores that accept UPI transactions, and send money to another UPI ID or Indian bank account.

Why is it popular? Ease of access. The system allows Indian tourists and NRIs to make instant payments using the UPI ID, with no bank details needed.

Unlike traditional bank transactions, there’s no need to add a beneficiary or provide lengthy bank account details of the recipient; they just use a UPI ID, QR code, or phone number.

Any hidden charges? There are no additional fees or charges for money transfers and payments for Indian travelers and NRIs.

Is there a maximum limit? The limit is 100,000 rupees ($1,190 or Dh4,380) per day.

Why real-time payments? Payments can be settled within minutes globally.

India dominates the global real-time payments market, with 129.3 billion transactions recorded in 2023 – more than the rest of the world’s top 10 real-time payments markets combined.

India accounted for 49% of all real-time transactions, followed by Brazil (14%), Thailand (8%), and China (7%), according to an ACI Worldwide payment data report.

Is it secure? Transactions have multilayered authentication, including the UPI pin.

The National Payments Corporation of India is an initiative of the Reserve Bank of India and the Indian Banks’ Association.

The introduction of UPI transactions in the UAE has the backing of both governments.

President Sheikh Mohammed and Indian Prime Minister Narendra Modi agreed to interlink instant payment platforms during a meeting in Abu Dhabi in February, where several agreements were signed.

Strengthening digital platforms will boost financial connectivity between the two nations.

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