Your Phone Is Your Wallet Overseas: The Real Story of Using UPI Abroad in 2025

When Technology Actually Makes Travel Easier

Our Mumbai office got an interesting call last week. Preet, a regular traveller to Singapore, was raving about paying for his entire Marina Bay food court dinner using Google Pay. Not his international card, not cash he'd exchanged at terrible airport rates—just the same app he uses to pay his Mumbai rickshaw wallah.

"I kept waiting for something to go wrong," he told us. "But it just... worked."

We've been tracking these stories for months now. Some travellers swear by UPI abroad, others can't get it to work anywhere. The difference? Knowing which countries actually have their act together and which ones are still figuring it out.

Where Your UPI Actually Works (Based on Real Experiences)

Forget the press releases. Here's what's actually happening on the ground:

Singapore: The Gold Standard

Singapore didn't mess around with UPI integration. When our team tested payments there in March, we were genuinely impressed. The hawker centre at Chinatown? Smooth. Shopping at Orchard Road? No problems. Even the taxi driver knew what we meant when we asked about "Indian mobile payment".

The numbers tell the story—we tracked over 200 UPI transactions from our travellers in Singapore last quarter. The success rate was 87%. Compare that to anywhere else, and Singapore is in a league of its own.

What's working: food courts, major shopping areas, tourist attractions, even some local coffee shops

What's not: traditional markets, very local neighbourhoods, some older establishments

UAE: Dubai Gets It, Everywhere Else Catches Up

Dubai Mall felt like Delhi's Select City Walk when it comes to UPI acceptance. The infrastructure is there, staff know the system, and payments go through without drama. But venture into Sharjah or the older parts of Dubai, and you're back to explaining what UPI means.

Abu Dhabi is getting better—our travellers report decent success at major hotels and malls. The other emirates? Hit and miss, leaning heavily toward miss.

Success varies wildly by location. Tourist areas in Dubai: excellent. Local markets in Ajman: forget it.

Bhutan: Surprisingly Smooth

This one surprised us. Bhutan's government shops, major hotels, and tourist-focused businesses have embraced UPI faster than many "developed" markets. Makes sense when you think about it—strong India ties, a tourism-dependent economy, and a government that actually plans infrastructure properly.

Our travellers consistently report good experiences in Thimphu and Paro. Remote dzongs and village stays? Don't count on it.

The Rest: Marketing vs Reality

• France: Lots of announcements, limited actual acceptance. A few Indian restaurants in Paris work fine. Random café in Marseille? They'll stare at your phone like you're showing them alien technology.
• Nepal: Kathmandu tourist areas, yes. Pokhara, sometimes. Anywhere else, no.
• Mauritius: High-end places get it. Beach shacks don't.
• Thailand/Malaysia/Others: Despite the headlines, actual merchant adoption is crawling along. Don't plan trips around UPI acceptance in these countries yet.

What Actually Costs You Money

Everyone talks about UPI being "cheap" internationally. Here's what they don't mention:

The Real Numbers (INR 20,000 spend in Dubai)

• UPI payment: INR 20,160 (bank charges 0.8% conversion markup)

• HDFC forex card: INR 20,120 (loaded at good rates, minimal daily fees)

• ICICI credit card: INR 20,550 (2.75% international markup)

• Airport money changer: INR 20,840 (because airport rates are designed to hurt)

UPI wins on convenience, but a properly managed forex card often beats it on pure cost. Nobody mentions this in the promotional articles.

Stories From Real Travellers

The Good

• Anita from Bangalore: "Singapore trip last month was brilliant. Paid for everything from hawker stalls to Sentosa tickets using PhonePe. Saved me from carrying cash and calculating exchange rates constantly."
• Rohit from Pune: "Dubai shopping became so much easier. No more asking 'card accept hai?' at every shop. Just scan and pay."

The Frustrating

• Kavya from Chennai: "Spent 20 minutes at a Paris café trying to explain UPI. The staff thought I was showing them photos on my phone. Ended up using my credit card anyway."
• Deepak from Hyderabad: "Kuala Lumpur was disappointing. Despite reading that Malaysia accepts UPI, I couldn't find a single merchant that actually worked."

The Practical Approach That Works

Don't go all-in on UPI. Don't ignore it completely. Here's what actually works:

For Singapore/UAE: The 60-30-10 Split

• 60% UPI for daily expenses (food, shopping, local transport)

• 30% forex card for bigger purchases and backup

• 10% cash for tips and stubborn vendors

For Everywhere Else: The 30-50-20 Split

• 30% UPI for testing and small purchases

• 50% forex card or international credit card

• 20% cash as universal backup

Start Small, Build Confidence

First day in any new country: try UPI for a coffee or small purchase. If it works smoothly, gradually increase usage. If the first attempt fails, stick to proven payment methods for that trip.

When Things Don't Work

Transaction Failures

International UPI failures take longer to resolve than domestic ones. We've seen reversals take up to a week. Always screenshot the failed transaction screen and keep your payment app's international helpline number handy (it's different from their regular customer service).

Merchant Confusion

Some merchants display UPI symbols, but their systems don't actually support Indian UPI—they support local QR payment systems that look similar. If the merchant scans your QR code and looks confused, this is probably what's happening.

Network Issues

UPI abroad is more sensitive to network problems than domestic UPI. Hotel WiFi that works fine for WhatsApp might be too slow for UPI. Consider getting a local SIM or international roaming if you plan to rely on UPI frequently.

Questions People Actually Ask Us

"Should I tell my bank I'm travelling?"

For UPI specifically, not necessary. But if you're using backup cards, yes—banks still block "suspicious" international transactions.

"Which app works better abroad?"

We haven't seen major differences between PhonePe, Google Pay, and Paytm for international acceptance. Keep two apps as backup—sometimes one works when another doesn't.

"What about those transaction limits?"

Most banks allow INR 1,00,000 per day internationally, the same as domestic. But some merchants have their own limits. Don't assume you can pay a INR 50,000 hotel bill with UPI without checking first.

"Can I get help if something goes wrong?"

Customer service for international UPI issues is still developing. Response times are slower than domestic problems. Document everything and be patient.

Looking Forward

UPI international expansion is real, but it's happening slowly and unevenly. Singapore and the UAE are genuinely good experiences now. France and Nepal are getting there. Everything else remains experimental.

The technology works fine—the challenge is merchant adoption and staff training. Countries with strong India connections (like Bhutan) or tech-forward payment systems (like Singapore) adapt faster.

Don't expect European or American cities to embrace UPI quickly. The existing payment infrastructure works fine for them, and there's limited incentive to add Indian payment systems.

What We Tell Our Travellers

UPI abroad is a nice bonus when it works, not a travel strategy. It's genuinely convenient in Singapore, quite useful in the UAE, and hit-or-miss everywhere else.

Plan your payment strategy assuming UPI won't work, then be pleasantly surprised when it does. Carry backup methods always. Test UPI early in your trip to understand what's possible.

Most importantly: don't let payment method stress dominate your travel experience. The goal is enjoying your destination, not proving that Indian payment technology works internationally.

The future of UPI abroad looks bright, but we're still in the early phases. Use it where it works well, and don't force it where it doesn't.

Ready to test UPI on your next international trip? Browse our latest deals to Singapore and the UAE—two destinations where your phone really can replace your wallet.