Cross-Border UPI vs International Cards: Which One Wins in 2025?
India’s UPI is going global. And that poses a key question for Indian merchants:
Should you accept international payments via Cross-Border UPI or stick to international debit/credit cards?
This guide dives into both options and shows which one gives you better results in 2025.
What Is Cross-Border UPI?
Cross-Border UPI allows Indian customers to pay international merchants in INR through their UPI apps. The system auto-converts INR to the merchant’s currency.
Countries currently supporting UPI include:
- Singapore
- UAE
- France
- Sri Lanka
- Bhutan
- Mauritius
No card needed. No FX hassle. Just a mobile app and a QR code or UPI link.
What Are International Card Payments?
These include:
- Visa
- Mastercard
- Amex
They’re globally accepted but come with:
- High FX markup (2%–5%)
- Gateway MDR charges
- OTP entry or card decline issues
- Longer refund timelines
Cards still work—but they’re clunky for both buyers and merchants.
Why Cross-Border UPI Wins in 2025
1. Lower Fees
UPI has no international MDR. FX charges are minimal and transparent.
2. Instant Settlement
Transactions process in real time. No waiting for authorization or delays due to card issuer restrictions.
3. Higher Success Rates
No more “payment declined” due to blocked foreign card issuers.
4. Simpler Refunds
Refunds auto-route to the UPI handle—no gateway paperwork.
5. Tighter Security
Every transaction requires mobile PIN + Aadhaar/KYC-linked identity.
What Indian Merchants Are Saying
Gaming platforms, edtech startups, forex platforms, and SaaS providers are rapidly shifting to Cross-Border UPI because of:
- Seamless integration with PlusPe APIs
- Real-time FX reports
- Better profit margins
- Full compliance with RBI and FEMA standards
Real Example: Cost Savings
A merchant doing ₹10 lakh/month in USD sales could save ₹30,000–₹40,000 per month just by switching from card rails to Cross-Border UPI.
That’s ₹3.5L+ in annual savings.
Internal Links You Can Add
- How PlusPe Onboards High-Risk Merchants Quickly
- The 2025 Guide to Online Payment Gateways for Indian Businesses
- Why Gateways Reject Forex & Gaming Merchants (and How to Get Approved)
Final Thoughts: Time to Choose the Smarter Payment Rail
While cards are still relevant, Cross-Border UPI is faster, cheaper, and easier to implement in 2025. It’s the clear winner for high-risk platforms and global-first Indian brands.
🚀 Want to Accept Global UPI Payments?
Talk to PlusPe to activate cross-border UPI in your app or checkout.
