India stalls Alipay+ integration with UPI over security concerns

The Indian government has stalled a proposal by Alipay+ to integrate its payment services with the national Unified Payments Interface (UPI) network. The decision stems from significant concerns regarding data security, potential data leaks, and the risk of money laundering.

Alipay+, operated by Singapore-based Ant International, submitted the proposal in January. The integration would have allowed Indian travelers to use their domestic payment accounts at over 150 million merchants across China, Hong Kong, and other Asian markets. A second phase would have enabled foreign visitors to use Alipay+ at merchants connected to UPI in India.

The move highlights ongoing sensitivities regarding Chinese involvement in India’s financial sector following the 2020 border clashes. While Ant International is headquartered in Singapore, the company’s Chinese origins remain a primary factor in the regulatory hesitation. The Indian foreign ministry has reportedly cited “political grounds” for the hold on the integration.