Indian travelers heading to Malaysia can now make payments using the Unified Payments Interface (UPI) directly at local merchants, thanks to a new partnership between Razorpay’s Malaysian arm, Curlec, and NPCI International Payments Limited (NIPL). Announced at the Global Fintech Fest 2025 on October 29, this integration allows users of apps like PhonePe, Google Pay, and Paytm to scan QR codes and pay instantly from their Indian bank accounts. Transactions are settled in Malaysian Ringgit (RM), eliminating the need for currency exchange or international cards, which often add extra fees.
This development boosts convenience for the growing number of Indian tourists, with over 1 million visitors to Malaysia in 2024 spending more than Rs 110 billion—a 71.7% increase from the previous year. UPI, India’s real-time payment system, processed nearly 20 billion transactions in September 2025 alone, proving its reliability and scale. By connecting to Curlec’s platform, Malaysian businesses from cafes in Kuala Lumpur to shops in Penang can accept these payments, fostering stronger economic ties between the two nations.
The move aligns with earlier discussions from the 2024 India-Malaysia summit, where leaders agreed to link UPI with Malaysia’s PayNet system. It positions Malaysia as the ninth country accepting UPI, joining Bhutan, Singapore, UAE, and others. For merchants, settlements happen quickly in local currency, reducing costs and improving efficiency. Experts predict this could cut transaction fees by up to 30% for cross-border payments, enhancing financial inclusion for travelers.
Ritesh Shukla, CEO of NIPL, called it a “significant milestone” in globalizing UPI. As India-Malaysia trade grows, with bilateral ties in digital economy, this innovation promises a cashless, borderless future for Asian fintech.
FAQs [Frequently Asked Questions]
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How does UPI work for Indians in Malaysia?
Travelers scan Malaysian merchant QR codes using UPI apps like Google Pay or PhonePe. Payments are instant from Indian accounts, settled in Ringgit, with no extra setup needed for linked banks. -
Which countries now accept UPI payments?
UPI is available in nine countries: Malaysia, Singapore, UAE, France, Sri Lanka, Nepal, Bhutan, Mauritius, and Qatar. It supports seamless transactions for Indian users abroad. -
What are the benefits for tourists and merchants?
Tourists avoid currency hassles and high fees; merchants gain access to Indian customers with quick settlements in local currency. This boosts tourism spending and business efficiency by 71.7% as seen in 2024.