
The National Payments Corporation of India (NPCI) recently made a big announcement that has changed the way Unified Payments Interface (UPI) works for international transactions. Starting April 4, 2025 NPCI has disabled QR based international “Share and Pay” UPI transactions specifically impacting peer to merchant (P2M) payments. This decision has raised many questions among UPI users, especially those who rely on UPI for quick and easy payments while traveling abroad or dealing with international merchants.
What is UPI and QR-Based Share & Pay?
Before diving into the new rule, let’s quickly understand what UPI and QR based Share and Pay are. UPI is a payment system developed by NPCI that allows users to send and receive money instantly using their smartphones. It’s super popular in India because it’s fast, secure and easy to use. You can pay someone by scanning a QR code, entering their UPI ID or using their phone number.
The “Share and Pay” feature is a specific way to make payments using UPI. In this method a merchant or person shares a QR code with you (via WhatsApp, email or any other platform). You scan this QR code using your UPI app like Google Pay, PhonePe or Paytm, to make the payment. This is especially useful for online transactions or when you’re not physically present at a store.
What Has Changed with NPCI’s New Rule?
As of April 4, 2025 NPCI has stopped allowing international QR based Share and Pay UPI transactions for P2M payments. P2M stands for “peer to merchant” which means payments made from an individual (you) to a business or merchant (like a shop or online store).
- No More Payments via Shared QR Codes Internationally: If someone sends you a QR code from another country (say, a merchant in Singapore or Dubai) you can no longer scan it to pay them using UPI. This applies to QR codes shared through apps like WhatsApp, email, or social media.
- Live QR Scanning Still Works: If you are physically present at a merchant’s location abroad (for example, a store in Thailand), you can still scan the QR code displayed at the counter to make a payment using UPI. This is called “live scanning,” and it’s not affected by the new rule.
- No Wallet Loading via Collect Requests: NPCI has also banned loading money into digital wallets using UPI collect requests. A collect request is when someone (like a merchant or even a friend) sends you a payment request and you approve it to send money. This restriction applies to wallets like Paytm, Amazon Pay, or other prepaid payment instruments.
These changes only apply to international transactions meaning UPI payments within India are not affected. You can still use Share and Pay or collect requests for domestic payments as usual.
Why Did NPCI Make This Change?
You might be wondering why NPCI decided to disable such a convenient feature. The main reason is security. UPI is a very secure system but fraudsters are always finding new ways to trick people. Shared QR codes can sometimes be manipulated or misused. For example scammers might send fake QR codes that look real tricking users into paying money to the wrong person. This is especially risky in international transactions where it’s harder to track or recover lost money.
By stopping QR based Share and Pay for international P2M transactions NPCI aims to:
- Reduce Fraud Risks: Shared QR codes are harder to verify especially when they come from another country. Scammers can exploit this by creating fake QR codes to steal money.
- Protect Users: Many people especially those new to digital payments might not realize they are scanning a fraudulent QR code. NPCI wants to make sure users don’t lose their hard earned money.
- Enhance Transaction Safety: Live scanning (where you scan a QR code in person) is considered safer because you can see the merchant and confirm the transaction details before paying.
The ban on wallet loading via collect requests is also part of this effort to tighten security. Fraudsters sometimes use collect requests to trick users into approving payments they didn’t intend to make. By restricting this feature for wallets NPCI is closing another loophole that could be exploited.
How Does This Affect UPI Users?
The new rule impacts different groups of people in different ways.
- Travelers Abroad:
- What’s Affected: If you are traveling abroad and a merchant sends you a QR code to pay for something (like an online booking or a service), you can’t use UPI to scan and pay anymore.
- What Still Works: If you are at a physical store or restaurant in another country that accepts UPI, you can scan the QR code displayed there to make a payment. For example, if you are shopping in Singapore and the store has a UPI QR code, you can still use your UPI app to pay.
- Online Shoppers:
- What’s Affected: If you are buying something from an international online store that accepts UPI, you won’t be able to pay using a shared QR code. This might limit your payment options for cross-border shopping.
- What Still Works: You can use other payment methods, like credit/debit cards, net banking, or international wallets, if the merchant supports them.
- Digital Wallet Users:
- What’s Affected: If you use a digital wallet like Paytm or Amazon Pay, you can no longer load money into it using a UPI collect request. This might make it harder to top up your wallet for certain transactions.
- What Still Works: You can still load money into your wallet using other methods, like direct bank transfers or UPI push transactions (where you initiate the payment yourself).
- Merchants Abroad:
- What’s Affected: International merchants who relied on shared QR codes to receive UPI payments from Indian customers will need to find other ways to collect money.
- What Still Works: Merchants can still accept UPI payments from Indian customers who scan QR codes in person at their stores.
What Can You Do Now?
If you are someone who uses UPI for international transactions don’t worry—there are still plenty of ways to make payments. Here are some tips to navigate the new rule:
- Use Live QR Scanning: If you are abroad look for merchants that display UPI QR codes at their stores. You can scan these codes to pay instantly, just like you do in India.
- Explore Other Payment Options: For online or international transactions where UPI Share and Pay isn’t available try using:
- Credit or debit cards
- Net banking
- International payment platforms like PayPal or Wise
- Digital wallets that support cross-border payments
- Stay Safe with QR Codes: Always double check QR codes before scanning especially if they’re shared digitally. If something looks suspicious (like a random QR code in an email) don’t scan it.
- Load Wallets Differently: If you rely on digital wallets load money using direct UPI payments or bank transfers instead of collect requests.
- Keep Your UPI App Updated: Make sure your UPI app is up to date to avoid any glitches and to stay informed about new features or rules.
The Bigger Picture
NPCI’s decision to disable QR based Share and Pay for international UPI transactions is part of a larger effort to make digital payments safer and more reliable. UPI has grown tremendously not just in India but also globally with countries like Singapore, UAE and France adopting it for cross border payments. As UPI becomes more popular NPCI wants to ensure it remains a trusted and secure platform for everyone.
While this change might feel inconvenient for some users it’s a step toward protecting millions of people from fraud and scams. By focusing on live scanning and tightening rules around collect requests NPCI is balancing convenience with safety.
The NPCI’s new rule effective from April 4, 2025 marks an important change in how UPI works for international transactions. While QR based Share and Pay for P2M payments is no longer allowed users can still make payments by scanning QR codes in person at international stores. The ban on loading wallets via collect requests adds another layer of security to prevent fraud. Although these changes might take some getting used to they are designed to keep your money safe in an increasingly digital world.
If you are a UPI user take some time to understand how this rule affects you and explore other payment options when needed. Stay cautious keep your apps updated and enjoy the convenience of UPI wherever it’s available.