India's UPI Payment System Makes Inroads in Japan
A significant leap forward for digital payments in India and Japan has been announced, as the Unified Payments Interface (UPI) is set to debut in Japan following trials by NTT Data. This development holds significant implications for the growing number of Indian tourists visiting Japan and the broader Indian economy.
The Growing Indian Tourist Market in Japan
According to a report by Nikkei Asia, Japanese IT services company NTT Data is partnering with the National Payments Corporation of India (NPCI) to run a trial in Japan in the fiscal year 2026. The trial aims to facilitate payments for Indian tourists using UPI, allowing them to pay with a QR code and have their Indian bank accounts debited.
In 2025, Japan received approximately 3.15 lakh visitors from India, a 35% year-on-year increase. With projections from McKinsey suggesting that the number of outbound trips from India could rise from 13 million in 2022 to 90 million in 2040, the potential for UPI adoption in Japan is substantial.
UPI: A Success Story in India and Beyond
Launched in 2016 as a government-led initiative, UPI has become an integral part of everyday life in India. The system allows a single QR code to be used by major payment applications and saw transactions rise 42% in fiscal 2024 to 185.8 billion. In June 2025, an IMF report called it the world's largest real-time payment system.
Since 2021, UPI has been exported to eight countries, including Bhutan, Singapore, France, Sri Lanka, and the UAE. The Indian government and NPCI are also helping nations such as Peru and Namibia develop similar rails.
Implications for the North East Region and India
For the North East region of India, which shares borders with Bhutan, Bangladesh, China, and Myanmar, the adoption of UPI in neighboring countries could lead to increased economic integration and tourism opportunities.
Moreover, as India continues to grow as a global economic power, the success of UPI in Japan and other countries could pave the way for further international partnerships and collaborations.
Reflections and Looking Forward
The expansion of UPI to Japan is a testament to the system's robustness and the growing demand for digital payments worldwide. As more countries adopt UPI, it is essential to ensure that the system remains secure, accessible, and user-friendly for all users.
With the potential for UPI to revolutionize payments in Japan and beyond, the future looks bright for this innovative Indian solution.