UPI transactions through QR Share & Pay method discontinued abroad

Changes implemented to improve security of UPI transactions outside India

The National Payments Corporation of India (NPCI) has discontinued Unified Payments Interface (UPI) transactions via ‘QR share and pay’ for international payments. Indian abroad will not be able to scan QR codes shared by merchants to make payments by this method.

 

“While the move strengthens compliance and risk mitigation, it does reduce the flexibility and ease of use for Indian users making remote international payments” said Jai Kumar, co-founder of TechFini.

 

Impact on users and merchants

 

Previously, merchants could send their QR codes via WhatsApp and other social media channels to buyers, who could then scan these codes using payment service provider (PSP) apps like Paytm or PhonePe. This was a convenient method for both domestic and international transactions. However, with the new directive, this will no longer be possible for international payments.

 

Domestic transactions and limits

 

A circular by NPCI said that domestic QR share and pay transactions will continue to be allowed but with a limit of Rs 2,000 for payments to non-verified offline merchants (P2M). This means that if a merchant within India is not registered with NPCI, users will not be able to pay them more than Rs 2,000 at once via the QR share & pay method.

 

“For Indian users, especially NRIs and frequent international travelers, this change is definitely going to impact convenience” said Kumar.

 

Collect requests discontinued for wallet loading

 

NPCI has also discontinued the use of collect requests for loading wallets or prepaid cards. Collect requests, where the merchant initiates the transaction and the customer approves it, have been prone to fraud. Customers will now need to initiate transactions themselves or generate a push request to load their wallets or gift cards.

 

The changes implemented by NPCI aim to bolster the security of UPI transactions, particularly in the international context, while also streamlining domestic payment processes. While these measures may introduce some inconvenience, they are expected to create a safer digital payment ecosystem.

 

Kumar said: “By limiting remote international payments, the NPCI and banks aim to curb the risk of fraud, prevent misuse, and ensure more controlled oversight of cross-border financial flows”