NPCI Partners with NTT DATA to Bring UPI Acceptance to Japan: A Game-Changer for Digital Payments

NPCI International Payments Limited, the global arm of India’s National Payments Corporation, has teamed up with NTT DATA Japan. They plan to provide the Unified Payments Interface (UPI) for merchants in Japan. This change will transform cross-border payments for Indian tourists and business travelers. It will also enhance Japan’s digital payment scene.

What was the Partnership

NTT DATA Japan operates CAFIS, the country’s largest card payment processing network, which connects acquirers, issuers, merchants, and ATMs across Japan. Under the Memorandum of Understanding (MoU) with NIPL, UPI will be integrated into Japan’s merchant network. Indian visitors can now pay easily. They can scan QR codes with UPI-enabled apps. This method is quick and familiar, as they use it often in India.

Japan’s move to cashless payments drives this decision. Japan has a history of using cash. However, the government and private sectors are now pushing for electronic payments. This shift is happening due to international events and increased tourism.

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The Japan National Tourism Organization reports that over 208,000 Indian tourists visited Japan from January to August 2025. This is a 36% rise compared to the same time in 2024. This big rise in demand calls for easy digital payment options for travelers abroad.

What are the Implications for Japan’s Tech and Payment Industry

This partnership revolutionizes Japan’s payment ecosystem. Digital payments have improved a lot lately. UPI provides great efficiency and convenience for merchants and consumers alike.

Japanese fintech and digital payment firms can now grab new chances for innovation through this partnership. Payment gateways, point-of-sale systems, and app developers will include cross-border payment features. This change will make things easier for tourists and international business clients.

UPI adoption in Japan will push fintech firms to create new services. These include real-time settlements, cross-border remittances, and multi-currency wallets. Domestic banks and payment processors will upgrade their tech. This will help support QR-based payments and other systems that work together.

Benefits to Businesses Operating in Japan

For merchants and businesses in Japan, accepting UPI offers key benefits:

Expanded Customer Base: Indian tourists are growing in number. By accepting UPI payments, merchants can attract more of these customers.

Streamlined Operations: QR-based digital payments cut down on cash handling. This reduces admin costs and lowers the risks tied to cash transactions.

Better Customer Experience: Providing familiar payment options makes things easier for visitors. This boosts satisfaction and may lead to repeat business.

Strategic Partnerships: This step boosts teamwork between Japanese and Indian fintech firms. It opens doors for new ideas and tech sharing.

Retailers, hotels, restaurants, and service providers can benefit from this initiative. They can serve Indian tourists better and support Japan’s goal of a cashless society.

Global Implications and UPI’s Expanding Footprint

India’s rise in global digital payments is secured by this partnership. UPI is now used in Singapore, Bhutan, Nepal, Sri Lanka, the Maldives, the UAE, Qatar, Mauritius, and France. Japan has also joined the list. UPI is growing worldwide. This makes it a real competitor to traditional international payment methods.

Indian businesses gain from UPI’s growth. It makes international deals simpler. It cuts down on the need for foreign payment systems. Also, it eases cross-border trade. Japan’s partnership shows its dedication to global digital payment standards. This move seeks to draw in more tourists and foreign investment.

The Broader Tech and Economic Impact

This collaboration has implications beyond payments. Japan shows it’s ready to adopt international fintech by embracing UPI. For tech companies, this opens up chances for R&D in payment security, fraud detection, and real-time processing systems.

This initiative’s success could inspire other countries with many tourists to accept UPI. This would help build a global network for digital payments that connect. Japan’s tourism, hospitality, retail, and e-commerce sectors can use this trend to boost revenue and improve efficiency.

結論

The NIPL–NTT DATA Japan partnership changes cross-border payments. It brings benefits to both India and Japan. It provides convenience and trust for travelers in India. Japanese businesses and the tech sector gain from innovation, more customers, and better payment systems.

UPI is growing worldwide. Partnerships like this boost global financial connections. Tech-based payment solutions boost tourism, commerce, and business growth. Japan’s use of UPI supports its cashless goal. It also sets a new standard for cross-border digital payments in the region.