UPI payments accessible to foreign businesses without local Indian entities

Foreign businesses, including those based in the United States, can accept Unified Payments Interface (UPI) payments from Indian customers without establishing a local Indian entity. Because UPI is a domestic Indian payment rail operated by the National Payments Corporation of India (NPCI), it is not designed to settle directly into foreign bank accounts.

To bridge this gap, international merchants can utilize RBI-authorized Payment Aggregator Cross-Border (PA-CB) providers. These services allow companies to collect payments via UPI, RuPay, and net banking, subsequently settling the funds in major international currencies such as USD, EUR, or GBP.

This capability is increasingly vital for accessing the Indian market, as UPI accounted for approximately 85.5% of India’s digital payments in the second half of 2025, according to the RBI’s Payment Systems Report. For many Indian consumers, UPI has become the default online payment method, making compatibility essential for foreign merchants seeking to avoid customer attrition.