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Paytm, the digital payments platform, has introduced a significant update for Non-Resident Indians (NRIs). Starting now, NRIs residing in 12 specific countries can utilize their international mobile numbers to access the Paytm app. This allows them to make payments via Unified Payment Interface (UPI) using their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank accounts. The feature aims to simplify transactions for NRIs when they are in India or shopping online on Indian platforms.
Key Benefits: The core advantage is the elimination of the need for international payment gateways or manual currency conversions. This means NRIs can directly scan UPI QR codes at physical stores or pay on Indian e-commerce sites without incurring additional fees or delays associated with traditional cross-border payment methods. Furthermore, users can easily transfer funds between their own accounts or send money instantly to other UPI IDs or linked mobile numbers within India, bypassing remittance delays and high foreign exchange costs.
How to Use: To use this feature, NRIs need to download or open the Paytm app, log in with their international mobile number, verify it via SMS, and link their eligible NRE or NRO bank account.
Significance of UPI: The news is amplified by the massive growth of UPI in India. According to the Reserve Bank of India, UPI transaction volumes surged to 17,221 crore in 2024 from 1,079 crore in 2019, with transaction values rising to Rs 246.8 lakh crore from Rs 18.4 lakh crore. UPI now accounts for 85% of India's digital payment volume, underscoring its importance and the strategic move by fintech companies like Paytm to tap into the NRI segment.
Heading "Impact"
This initiative is expected to boost transaction volumes for Paytm, enhance user engagement from the NRI segment, and potentially set a precedent for other fintech players. The increased adoption of UPI by NRIs will further solidify India's digital payment ecosystem.
Rating: 8/10
Heading "Difficult terms"
Non-Resident Indians (NRIs): Indian citizens who live outside India for employment, business, or other purposes.
Unified Payment Interface (UPI): An instant real-time payment system developed by the National Payments Corporation of India (NPCI) for inter-bank transactions.
NRE Account (Non-Resident External Account): A bank account in India for NRIs to park their foreign earnings in Indian Rupees.
NRO Account (Non-Resident Ordinary Account): A bank account in India for NRIs to manage their income earned in India (like rent, dividends, etc.).
Forex Charges: Foreign exchange charges, which are fees incurred when converting money from one currency to another.
Remittance: The act of sending money, especially to a foreign country.
UPI QR Code: A Quick Response code that, when scanned by a UPI-enabled app, initiates a payment request.