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International UPI gives travelers another convenient way to pay abroad, with the Unified Payments Interface now available across 11 countries. Travelers can scan a QR code, enter the amount, and approve payments without carrying large amounts of foreign currency or using a card. But convenience does not necessarily mean UPI is always the cheapest option.
The final cost of an international UPI transaction depends on the exchange rate offered at the time of payment, currency conversion charges, bank fees, and the payment instrument linked to the UPI account.
Travelers can pay directly from their linked bank account without loading money onto a forex card in advance. However, currency conversion fees may be incorporated directly into exchange rates or billed separately.
Akshay Mehrotra, MD and Group CEO of Fibe, told NDTV that consumers should compare the total cost of a transaction rather than assuming one payment method will always be cheaper.
The amount eventually debited from a bank account matters more than the foreign-currency amount displayed at checkout. Even a small exchange-rate difference can affect the final bill, especially across hotel stays, restaurant payments, shopping, and other large expenses.
Travelers should compare the exchange rate with the prevailing market rate and check whether their bank or payment provider adds a separate forex or currency conversion markup.
Forex cards can offer greater certainty since the exchange rate is generally locked in when you load foreign currency onto the card. This can help travelers planning longer holidays or expenses where they expect exchange rates to move unfavorably.
However, forex cards are not automatically the cheapest option. Travelers should check charges for issuing, loading, reloading, and ATM withdrawals.
Also Read: Frozen Screen, Empty Account? How Cybercriminals are Targeting UPI Users
International credit and debit cards can compete with UPI, particularly cards offering low or zero forex markup. Travelers should watch for dynamic currency conversion and may benefit from paying in the local currency.
Cash remains useful for taxis, small shops, local markets, and places where digital payments are unavailable. But exchange spreads, security risks, and ATM withdrawal and currency conversion fees can add to the cost.
UPI's international expansion gives travelers greater flexibility, but acceptance varies by country, city, and merchant. Before traveling, users should check whether international UPI is enabled, confirm transaction limits, and verify the foreign currency amount, INR equivalent, exchange rate, and applicable charges.
Travelers should also use genuine merchant QR codes, verify the merchant name and transaction amount, and never share their UPI PIN or approve unexpected payment requests.
