UPI goes live in Malaysia, boosting payment connectivity

India’s Unified Payments Interface (UPI) is set to launch in Malaysia, marking a new phase in digital payments cooperation between the two countries. The move will see UPI linked with Malaysia’s national payments network, PayNet, enabling cross-border payment interoperability.

Indian Prime Minister Narendra Modi announced the development during an address to the Indian diaspora in Kuala Lumpur. “The Malaysia-India Digital Council is paving new pathways for our digital collaboration. I am happy to share with you that India’s UPI will come to Malaysia soon,” he said.

The intention to expand UPI into Malaysia was first signalled in August 2024, reflecting broader efforts to strengthen bilateral digital and economic ties. Modi noted that nearly half of the world’s real-time digital transactions take place in India via the UPI platform, underscoring the system’s scale and maturity.

Malaysian Prime Minister Datuk Seri Anwar Ibrahim said the two countries are deepening cooperation in sectors expected to shape long-term economic growth. “The Malaysia-India Digital Council reflects this shared ambition. The linkage between India’s unified payment system, UPI, and Malaysia’s PayNet system will make cross-border payment simpler for businesses, students and clients,” he said.

The planned integration is expected to streamline remittances and retail payments between the two markets, benefiting Indian tourists, students and migrant workers in Malaysia, as well as Malaysian businesses engaging with Indian partners. For financial institutions and payment service providers, the linkage represents a step toward greater regional interoperability in real-time payments infrastructure.

UPI, developed by the National Payments Corporation of India, has become one of the world’s largest instant payment systems, processing billions of transactions monthly. Its international expansion aligns with India’s strategy to position UPI as a global payments standard through bilateral linkages and cross-border corridors.

Modi’s previous official visit to Malaysia took place in November 2015, with a brief stopover in May 2018. The renewed engagement signals continued emphasis on digital collaboration as a pillar of the Malaysia–India relationship.