India Engages in Discussions with Ant International for Alipay+ and UPI Integration
India is currently in active discussions with Ant International, a company with origins linked to China, to enable the integration of the digital payments platform Alipay+ with the country's widely used instant payments system, the Unified Payments Interface (UPI). This strategic move could significantly simplify and reduce the costs associated with cross-border transactions for Indian travelers, according to a Reuters report citing two government sources.
Potential Benefits for Indian Travelers and Merchants
The proposed integration would allow Indian travelers to use UPI-linked payment methods at merchants globally that have signed up with Alipay+. This would heavily streamline overseas spending by eliminating the need for currency conversions and reducing transaction fees typically associated with international payments. Alipay+ currently connects approximately 1.8 billion user accounts with more than 150 million merchants across over 100 markets worldwide, including numerous locations in Asia, Europe, the Middle East, and Latin America.
Background on Ant International and UPI's Growth
Ant International, headquartered in Singapore and founded by China's Ant Group, now operates as an independent entity. Meanwhile, UPI has become a cornerstone of India's fintech infrastructure, handling nearly 18 billion transactions monthly. Indian authorities have been keen to extend UPI's international reach to enable smoother digital payments in Indian rupees for travelers and the overseas Indian diaspora.
Geopolitical Sensitivities and Security Considerations
However, final approval for the Alipay+ integration will depend on thorough security evaluations. "There are sensitivities involved in terms of geopolitical positioning or in securing the country's digital infrastructure and data because of Alipay's roots in China," Reuters reported, citing sources. India continues to enforce strict investment regulations for Chinese firms that were introduced after the 2020 border standoff, and those curbs remain firmly in place.
Thaw in India-China Economic Relations
The talks between Indian government and central bank officials with Ant International indicate a potential thaw in bilateral economic engagement between New Delhi and Beijing. Strained relations between India and China following their 2020 border standoff had significantly slowed the flow of capital, technology, and talent between the two neighbors. New Delhi had tightened scrutiny of investments by China-based firms or those with China-linked ownership, which stalled or delayed several projects, including Chinese electric vehicle maker BYD's proposed $1 billion investment plan in an Indian EV venture.
Recent Diplomatic Developments
In the past year, however, India has begun cautiously rekindling engagement with Beijing as it navigates challenging U.S. tariffs and shifting global trade patterns, according to officials. Prime Minister Narendra Modi visited China in 2025 for the first time in seven years and discussed ways to improve bilateral ties in a meeting with Chinese President Xi Jinping. This diplomatic outreach suggests a gradual warming of relations that could facilitate economic collaborations like the potential Alipay+-UPI integration.
The outcome of these discussions will be closely watched by financial technology observers and geopolitical analysts alike, as it represents both a significant advancement in India's digital payments infrastructure and a barometer of evolving India-China relations in the economic sphere.
