How to Accept UPI Payments from India for Your International Business

Why International Businesses Must Accept UPI Payments from India

India is the fastest-growing digital economy in the world, and its pace is unmatched. According to the Press Information Bureau, India’s digital economy is projected to contribute nearly one-fifth of the country’s GDP by 2029–30. This growth is happening at almost twice the rate of the overall economy, driven by large-scale internet access, digital platforms, and the rapid consumer adoption of tools like UPI payments.

With more than 12 billion UPI transactions taking place every month, this payment system has become the first choice across India’s cities, small towns, and even rural areas. For international businesses offering services or products to Indian customers, enabling UPI payment is no longer optional. It is a requirement to stay competitive and accessible.

Indian consumers rely on UPI payment apps such as Google Pay, PhonePe, and Paytm for nearly every daily transaction. When shopping online, they expect to see UPI as a payment option. If they don’t, many simply abandon their carts. This is particularly common for low and mid-value purchases where other methods like cards or net banking seem slow or unnecessary.

The growing relevance of UPI for international payments makes it possible for businesses outside India to accept rupee payments and receive settlements in foreign currencies. This can be done without opening an office or registering a company in India. Global SaaS platforms, independent consultants, digital product sellers, and educators are already using this model.

In India, convenience leads to conversion. Offering UPI payment is the most direct way for international businesses to meet customer expectations and drive more sales.

Read more: How to Make UPI Payment: Key FAQs Answered

Can You Accept UPI Payments Without an Indian Entity?

Traditionally, foreign businesses that wanted to collect payments from Indian customers had to establish a local presence. This meant setting up an Indian private limited company, opening a domestic bank account, registering under GST, and handling tax filings. For most international businesses, this created unnecessary cost and legal complexity, especially if the goal was only to accept occasional payments from Indian users.

However, that barrier no longer exists. With the rise of regulated payment platforms designed for cross-border use, it is now possible to accept UPI payment without opening a company in India. Solutions like Razorpay’s Import Flow and Paytm’s international checkout allow global businesses to tap into UPI without local incorporation.

These platforms work as licensed intermediaries. They hold the required approvals from the Reserve Bank of India to collect payments in Indian rupees and convert them into foreign currency before transferring the settlement to your global bank account. This eliminates the need for a local Indian bank, physical office, or compliance with domestic tax obligations.

The customer pays you through UPI payment apps like PhonePe or Google Pay. You receive the funds in your preferred currency, such as USD or EUR. The entire transaction remains compliant with India’s foreign exchange laws, while your business avoids the hassle of setting up a legal structure in the country.

This model has made UPI for international payments far more accessible. Today, global SaaS platforms, freelancers, and exporters use it to accept Indian customer payments smoothly, without dealing with local incorporation or regulatory delays.

UPI Payment Collection Workflow for International Businesses

Here’s how a typical UPI payment transaction flows when an international business collects payment from an Indian customer:

• The customer reaches your checkout page and selects UPI payment as their preferred option.
  
• They enter their UPI payment app ID (like name@bank or mobile@UPI) or scan a QR code generated at checkout.
  
• The payment request is routed through a licensed Indian UPI payment gateway integration provider such as Razorpay or Paytm.
  
• The customer receives a prompt on their UPI payment app to approve the transaction.
  
• Upon approval, funds are debited instantly from their Indian bank account and credited to the gateway provider’s INR pool account.
  
• The provider handles currency conversion (INR to USD, EUR, or GBP) at competitive forex rates.
  
• The foreign currency equivalent is remitted to your international business account, typically within 1 to 2 working days.
  
• You receive a Foreign Inward Remittance Advice (FIRA) along with purpose code tagging for regulatory compliance.
  
• The transaction is logged in your dashboard with full tracking, settlement status, and customer details.
  
• Refunds, if needed, can be issued directly back to the customer’s UPI payment app using the same interface.
  

This process ensures fast, secure, and compliant settlement of UPI for international payments without any need for an Indian bank account or legal entity.

Read more: Everything You Need to Know About UPI Payments

UPI Payment Gateway Integration Options for International Merchants

International businesses that want to accept UPI payments from Indian customers can integrate with several trusted Indian platforms. These gateways simplify the process, provide compliance support, and offer reliable settlement mechanisms. Here are the top Indian platforms supporting UPI for international payments:

• Razorpay
  Razorpay offers a dedicated solution that allows foreign businesses to collect payments through UPI payment apps without needing a registered Indian entity. It supports integration via plugins and APIs, enables currency conversion, and provides settlement in international currencies like USD and EUR. The platform ensures a smooth onboarding experience with full compliance.
  
• Paytm
  Paytm’s international merchant gateway allows foreign businesses to accept payments from Indian customers using UPI payment apps, debit cards, net banking, and wallets. It provides advanced features such as auto-refunds, dynamic currency conversion, and a dashboard to track transaction performance. Paytm also supports recurring billing with UPI Autopay.
  
• Cashfree Payments
  Cashfree offers a powerful suite for UPI payment gateway integration, enabling real-time payments, QR code generation, and link-based UPI collections. It supports foreign settlement accounts, offers quick disbursals, and provides documentation like FIRA for compliance. Cashfree is known for its fast T+1 settlement cycles.
  
• PayU
  PayU provides extensive tools for international businesses targeting Indian consumers. It supports UPI payment collection through seamless checkout experiences and real-time status updates. With a focus on success rates and customer retention, PayU also enables easy refunds and flexible settlement options.
  
• CCAvenue
  CCAvenue supports cross-border collections through its integration with multiple UPI payment apps. It offers a secure and scalable gateway for Indian customers paying in INR, with backend tools for reconciliation, refund management, and analytics. CCAvenue is part of Infibeam Avenues, one of India’s oldest digital payment companies.
  
• BillDesk
  BillDesk is a long-established Indian payment platform that enables UPI payment collection for both domestic and cross-border transactions. It provides reliable infrastructure, high uptime, and regulatory compliance. Businesses can integrate through APIs and collect INR payments directly from Indian customers.
  
• EnKash
  EnKash supports UPI payment gateway integration for international businesses through customizable checkout options. It allows UPI collections via QR codes, payment links, and UPI IDs, making it flexible for B2C and B2B payment flows. EnKash is RBI-approved as a payment aggregator and offers INR collections with international settlement options and necessary compliance documentation. 

These platforms give international merchants the tools needed to accept UPI payment from Indian customers without opening a local entity. Each offers unique advantages based on business size, integration preference, and volume of transactions.

Compliance Checklist: Legal and Documentation Requirements

To accept UPI payment from Indian customers as a foreign business, you must stay compliant with India’s financial regulations. Here is a detailed checklist of what you need to ensure:

• You must collect payments through a licensed Indian payment aggregator that is authorized by the Reserve Bank of India (RBI).
  
• Each UPI payment must be tagged with the correct purpose code. This code defines the nature of the payment (e.g., export of services, software development, or consulting).
  
• After each transaction, you must request or automatically receive a Foreign Inward Remittance Advice (FIRA). This document confirms the receipt of foreign exchange and is needed for accounting and audits.
  
• The UPI payment gateway integration must support compliant conversion of INR to your preferred currency through an Authorized Dealer Category-I bank.
  
• GST is not required for businesses that do not have a physical presence or registered entity in India. However, you must ensure the payment platform you use is handling tax classification correctly.
  
• The payment gateway should offer automatic FIRA generation and purpose code assignment to avoid manual intervention and reduce the risk of errors.
  
• Maintain a digital or physical record of all UPI international payments for at least five years, as required by FEMA (Foreign Exchange Management Act) compliance.
  
• Refunds, if processed, should be initiated through the same channel using the original UPI reference ID to ensure transparency and traceability.
  
• Reconciliation reports should be downloaded regularly from your payment dashboard to keep internal accounting aligned with settlements.
  
• Before onboarding with a provider, verify their RBI license status and ensure they are allowed to facilitate UPI payment apps for cross-border collections.

Read more: How to Easily Create UPI Payment Links and Streamline Your Collections

Currency Settlement and Forex Fees: What to Expect

When accepting UPI payment from Indian customers, the funds you collect are in Indian Rupees. Since your business operates outside India, the collected INR must be converted into your preferred foreign currency like USD, EUR, or GBP. This currency conversion and settlement process is managed by the payment gateway you use, and understanding its structure is important to avoid unexpected deductions or delays.

Settlement timelines vary by provider. Razorpay and Paytm typically settle the converted foreign currency into your international account within two to three business days. Cashfree and EnKash also offer similar timelines, though some platforms like Skydo provide next-day settlements. Fast settlement ensures your cash flow remains steady and helps in planning fund usage without disruptions.

Forex fees apply when the INR collected via UPI payment apps is converted to your local currency. Some gateways offer mid-market exchange rates with a fixed markup, while others include variable charges depending on the volume. For example, a small markup of 1 to 1.5 percent is common on each transaction. This is in addition to any transaction fees levied by the platform.

The UPI payment gateway integration you choose should offer clear visibility into settlement status, exchange rates used, and total deductions. A proper breakdown in your dashboard is essential for accounting and auditing. Always compare forex terms before onboarding with a provider, since even small percentage differences can impact profitability at scale.

Read more: UPI Transaction Limit

Conclusion: A Smart, Scalable Way to Reach Indian Buyers

Enabling UPI payment is no longer an option for international businesses targeting Indian customers—it is a critical part of doing business in this market. With Indian consumers relying heavily on UPI payment apps for daily transactions, integrating this option into your checkout flow builds trust, improves conversion, and eliminates payment friction.

Thanks to advancements in fintech, accepting UPI for international payments no longer requires opening a local office or setting up an Indian bank account. Platforms like Razorpay, Paytm, Cashfree, EnKash, and others have made it simple, compliant, and quick to collect INR and settle in foreign currency. These solutions come with regulatory support, purpose code tagging, and forex settlement—all handled in the background.

If your business operates in SaaS, e-commerce, consulting, education, or digital services, integrating UPI payment gateway integration is one of the most practical decisions you can make. It opens your brand to millions of ready-to-pay customers who prefer UPI over other options.

The opportunity is clear. UPI is the future of payments in India, and now global businesses can be a part of it.

FAQs

1. Can I accept UPI payments if my business is based in a tax-free country?
   Yes, you can accept UPI payment from Indian customers even if you’re based in a tax-free country, as long as you use an RBI-approved payment gateway. The provider ensures compliance with India’s regulations and handles settlement in your preferred currency.
2. What happens if a customer enters the wrong UPI ID while paying?
   If the UPI ID is invalid, the transaction will not be processed. Most UPI payment apps validate the UPI handle before confirming the payment, ensuring a low chance of error. You can also offer dynamic QR codes to avoid manual entry.
3. Is there a minimum or maximum transaction limit for UPI payments to international businesses?
   Yes, most UPI for international payments follow NPCI’s default transaction limits. Generally, the upper limit is ₹1 lakh per transaction, though this may vary based on the customer’s bank and the payment gateway you use.
4. Can I receive recurring payments through UPI from Indian customers?
   Yes, platforms that support UPI Autopay allow you to collect recurring payments from Indian customers using UPI payment apps. This is ideal for SaaS, subscription models, or digital services that bill monthly or yearly.
5. Do international refunds work the same way for UPI transactions?
   Refunds for UPI payment transactions must be initiated through the same payment gateway that was used for collection. The amount is returned directly to the customer’s UPI-linked bank account. Refund timelines are usually short, ranging from 24 to 72 hours.