NPCI International Payments Ltd (NIPL) has signed a Memorandum of Understanding (MoU) with NTT DATA Japan, a significant player in Japan's payment ecosystem. This strategic alliance aims to bring Unified Payments Interface (UPI) acceptance to the Japanese market, primarily benefiting Indian tourists. Under the agreement, Indian travelers will be able to make payments by scanning QR codes through their existing UPI applications at merchant locations serviced by NTT DATA. NTT DATA operates CAFIS, Japan's largest card payment processing network, connecting numerous banks, ATMs, and merchants across the country.
This initiative is expected to provide a smoother and more familiar digital payment experience for inbound Indian visitors. Ritesh Shukla, MD & CEO of NPCI International, highlighted this as a crucial step towards global UPI expansion and simplifying cross-border payments. Masanori Kurihara, Head of Payments in Japan at NTT DATA, expressed that enabling UPI would boost shopping ease for Indian tourists and support Japanese merchants.
With over 208,000 Indian tourists visiting Japan between January and August 2025, this partnership addresses a growing travel corridor and reinforces India's ambition to establish UPI as a leading global digital payment system.
Impact: This partnership signifies a major step in the internationalization of India's digital payment infrastructure. It will likely boost the confidence and global reach of Indian fintech companies and payment gateways. For Indian tourists, it removes a barrier to spending and convenience. For merchants in Japan, it opens up a significant customer segment. The potential for UPI expansion into more countries could lead to increased transaction volumes and revenue streams for related Indian entities, positively influencing investor sentiment towards the Indian fintech sector.
Impact Rating: 8/10
Difficult Terms:
- NPCI International Payments Ltd (NIPL): The international subsidiary of the National Payments Corporation of India (NPCI), responsible for deploying India's payment systems like UPI and RuPay in foreign markets.
- Unified Payments Interface (UPI): An instant real-time payment system developed by the National Payments Corporation of India (NPCI), facilitating inter-bank transactions through mobile devices.
- Memorandum of Understanding (MoU): A formal agreement between two or more parties outlining the common line of action or objective.
- NTT DATA: A major Japanese IT services company that provides consulting, system integration, and other IT and network services, including payment processing.
- CAFIS: Stands for Credit and Finance Information Services. It is Japan's largest credit card transaction processing network, operated by NTT DATA.