UPI Goes Local: NPCI Bans International QR Payments to Fight Fraud
India’s National Payments Corporation (NPCI) has tightened cross-border UPI transactions, banning QR-based “Share & Pay” for international payments starting April 4, 2025. The move aims to curb fraud but disrupts millions relying on apps like Gpay and PhonePe for seamless overseas transactions.
Key Changes:
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QR Share & Pay Disabled: Users can no longer scan QR codes shared digitally by foreign merchants. Payments must be made via on-site QR scans only.
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Fraud Prevention Focus: NPCI’s April 8 circular cites rising scams via manipulated shared QR codes and collect requests.
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Traveler Troubles: Indians in 7 countries (UAE, France, Singapore, etc.) must now visit merchant locations to pay via UPI.
Also Read: UPI Collapse Again: Fourth Outage in 30 Days Sparks Nationwide Payment Chaos
Domestic Limits Stay:
While domestic QR Share & Pay continues, unverified merchants face a ₹2,000 per-transaction cap. Collect requests for wallets/prepaid cards are also restricted, pushing users to initiate payments manually.
Mixed Reactions:
Techfini co-founder Jay Kumar called the move a “blow to convenience,” while security experts applaud reduced fraud risks. NRIs and frequent travelers lament losing a hassle-free payment tool.
What’s Next?
NPCI plans global UPI expansion but prioritizes security. Users may shift to cards or forex apps, raising questions about India’s digital payment ambitions.
