Indian Expats in UAE Want Easier UPI Registration – Here’s What Needs to Change

As the Indian government and fintech sector expand international adoption of the Unified Payments Interface (UPI), the focus is now shifting to improving the usability of the system for Indian expatriates in the UAE. UPI is a well-recognized product that has transformed digital payments in India and is now being rolled out to global markets, including the Gulf region.

Although resident Indian travelers in the UAE can now utilize UPI for a fast and cashless experience at retail stores, it is not as straightforward for Non-Resident Indians (NRIs). Several barriers are blocking the wider adoption of UPIs amongst the UAE’s large population of Indians. However, this issue needs to be resolved for seamless UPI transactions for Indians across the UAE.

Why NRIs Still Struggle to Embrace UPI? 

Even though UPI has been deployed internationally, Indian expatriates in the UAE are facing a variety of real-life challenges.  Tourists from India can easily transact via UPI, but challenges exist for NRIs who find the process difficult. Problems with the onboarding process, such as restrictions on registration, limited documentation options, and confusion over tax implications, make the transition slow.  If UPI wants to gain international success, especially in the Gulf region, simplifying the road for NRIs into the UPI system is vital.

• The UPI registration process requires an Indian mobile number to sign up for a domestic bank account.
• UAE mobile numbers cannot be entered for UPI registration, creating friction in onboarding. 
• There is no option to KYC remotely using an Indian passport and an Emirates ID. 
• Confusion surrounding NRE/NRO registration rules and tax implications for using UPI. 
• Many NRIs do not understand the advantages of UPI compared to cards.
• Usually, NRI onboarding requires NRIs to be in-person or have a physical Indian address to access the UPI technology.

Opportunities Under the CEPA Framework

India and the UAE are trying to grow financial cooperation in accordance with the Comprehensive Economic Partnership Agreement (CEPA). Experts seem acutely aware that UPI could potentially play a significant role in solidifying bilateral fintech relationships. The UPI system has the potential to create a low-cost and secure channel for everyday transactions and also remittances for the Indian workforce in the UAE if simplified.

Indian Tourists Already Reaping UPI Benefits

Indian travelers to the UAE are already benefiting from UPI integration. With India’s National Payments Corporation and UAE-based digital platforms teaming up, tourists will shortly have the ability to pay for their shopping, food, or services directly from their smartphone, using the UPI system instead of cash or cards.

“Use of the UPI system is growing amongst Indian visitors in the UAE,” said Nilay Singh, BFSI Convener at IBPC Dubai and CEO of SBI. “Although it can only be used to pay for goods and services at retailers that are connected with the UPI system.” Even with growing interest in UPI-based payments, more tourists still prefer to stick with credit cards because they are familiar to them, have global acceptance, and offer various benefits.

Why Credit Cards Still Dominate?

“Credit cards offer delayed billing options, rewards or loyalty points, and global acceptance to help the consumer make payments. That is why credit cards are popular with tourists,” stated Krishnan Ramachandran, Chief Executive Officer of Barjeel Geojit Financial Services. For UPI to compete, fintech companies must:

• Offer rewards or loyalty points like credit cards.
• More merchants throughout the UAE must accept UPI.
• Educating and increasing consumer awareness of UPI’s functionality and security is a must.

Alternative Payment Options for Indian Tourists

As UPI increases its market share in the UAE, Indian travelers can still use a variety of payment options while in the UAE. Below is a list of options:

1. Rupee Payment with Local Currency Settlement (LCS)

Permitted through bilateral agreement with the Indian and UAE governments. UAE businesses can open Special Non-Repatriable Rupee (SNRR) accounts. Currently,, and primarily applied in some niche sectors such as gold trading.

2. International Debit Cards

These cards are issued by Indian banks via Visa/Mastercard networks. While in the UAE, Indian travelers can use their International Debit Cards at the vast majority of international ATMs and point-of-sale payment spots.

3. Vishwa Yatra Card

Vishwa Yatra Card is a preloaded card that allows payments and ATM withdrawals in multiple currencies. It is an easy way to pay. 

4. Credit Cards

Credit cards are the most widely used method of payment worldwide. These are widely accepted around the world and provide users with credits.

5. RuPay Global Card

RuPay Global Card is usable for international payments at identified global merchants. RuPay has far less international acceptance than Visa/Mastercard.

6. Digital Wallets and Payment Links

Some merchants in the UAE will generate QR codes or payment links that facilitate Indian users to pay via digital wallets.

Looking Ahead

India’s decision to make UPI international has been a bold step toward enhancing efficiencies in cross-border payments. However, it also needs to create a simplified experience for NRIs as it does for Indian residents. With easier onboarding, better merchant partnerships, and improved user education, UPI can be a preferred payment mechanism not just for tourists, but for the millions of Indian expats in the Gulf as well. “The infrastructure exists – but now it’s about making the system more inclusive and easy to adopt,” said Chaturvedi.

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