By Sanjeev Oak
In a groundbreaking move, the Unified Payments Interface (UPI) has made its European debut under the shadow of the iconic Eiffel Tower in France. This initiative marks a major step in expanding digital payment systems globally. Tourists visiting Europe, particularly Indian travelers, will no longer need to rely on cash in foreign currency. Instead, they can seamlessly complete transactions by scanning QR codes and paying directly through their mobile phones.
A Visionary Step for Global Payments
Launched in 2016, UPI has quickly gained popularity for its ease of use and security. It enables real-time money transfers without disclosing personal banking details or incurring additional charges. This innovative system was recently introduced at a Republic Day event hosted by the Indian Embassy in France, with French President Emmanuel Macron in attendance.
According to a statement by NPCI (National Payments Corporation of India), a collaboration with French e-commerce and payments company Lyra made the Eiffel Tower the first location in France to accept UPI payments. Efforts are now underway to expand this facility across Europe, benefiting the large number of Indian tourists who visit France, second only to the Americans.
A Boon for Indian Travelers
The ability to pay directly through UPI eliminates the need for travelers to carry foreign currency, offering a hassle-free experience. UPI will also significantly benefit students studying abroad and professionals working overseas by providing a low-cost, secure method for transactions.
Indian visitors to the Eiffel Tower can now scan a QR code to pay entry fees directly from their bank accounts in India. This system highlights the growing influence of UPI as a global digital payment solution.
Global Expansion of UPI
NPCI CEO Ritesh Shukla emphasized the organization’s commitment to taking UPI to more countries. The system is already active in nations such as Bhutan, Nepal, UAE, Singapore, Malaysia, and Thailand. The UAE alone has over 26,000 merchants accepting UPI payments, with further expansion plans in progress.
Additionally, UPI is expected to ease cross-border remittances for the 30 million Non-Resident Indians (NRIs) who send approximately $100 billion annually to India. By lowering transaction costs and providing a secure platform, UPI is set to redefine global remittance systems.
A Growing Digital Economy
The success of UPI reflects India’s leadership in the digital payments space. Giants like PhonePe, Google Pay, and Paytm dominate the market, with WhatsApp Pay quickly gaining traction. In May 2023, PhonePe accounted for 49% of all UPI transactions, followed by Google Pay at 34.7%, and Paytm at 14.2%.
India recorded an astounding 10.5 billion UPI transactions worth ₹15.7 trillion ($190 billion) in August alone. This marks a 90% increase in transaction value compared to the same period last year. Factors such as smartphone penetration, internet availability, and governmental support have fueled this growth.
A Revolutionary Digital Leap
Introduced post-demonetization to promote a cashless economy, UPI has now become a cornerstone of India’s financial infrastructure. By December 2022, monthly UPI transactions had surged from 2 million in December 2016 to 7.8 billion, with transaction values growing from ₹7 billion to ₹12.8 trillion.
Despite initial skepticism, UPI has become the backbone of India’s digital economy and a symbol of its technological prowess. It is poised to make a significant impact on global payment systems, fostering financial inclusion and setting new benchmarks for transparency and security.
As India continues to export its digital innovations, the UPI system’s success story at the Eiffel Tower underscores its potential to transform how the world handles money.