UPI to Be Used in Israel: A Strategic Leap in India–Israel Digital Ties
India and Israel have agreed to enable UPI usage in Israel, strengthening digital payments, trade ties, and fintech collaboration.
India and Israel have agreed to enable UPI usage in Israel, strengthening digital payments, trade ties, and fintech collaboration.
India has taken a decisive step in expanding its digital payments footprint. During Prime Minister Narendra Modi’s official visit to Israel, both nations agreed to enable the use of India’s Unified Payments Interface in Israel.
This decision marks more than a payments upgrade. It reflects a deeper economic alignment. It also signals trust in India’s digital public infrastructure on a global stage.
The Announcement That Signals a Shift
The announcement followed high level meetings with Israeli leadership, including Prime Minister Benjamin Netanyahu.
Both sides confirmed that work will begin to operationalize UPI usage in Israel. The move aligns with broader talks on concluding the India–Israel Free Trade Agreement. Importantly, officials described the agreement as a practical outcome, not a symbolic gesture.
UPI’s entry into Israel will initially focus on merchant payments. Over time, peer to peer transactions may follow.
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Why UPI Matters in This Context
UPI has transformed India’s payment ecosystem. It now processes over 12 billion transactions per month, with monthly values crossing ₹18 lakh crore.
Because of this scale, UPI offers three advantages:
- Near zero transaction costs
- Real time settlement
- High security backed by public infrastructure
Therefore, Israel’s acceptance of UPI reflects confidence in its reliability and governance model.
India–Israel Economic Engagement
India and Israel upgraded their relationship to a Special Strategic Partnership in 2017. Since then, cooperation has expanded across defense, agriculture, technology, and innovation.
Bilateral trade currently stands at over USD 10 billion annually, excluding defense. However, leaders on both sides agree this figure underrepresents potential.
Consequently, the proposed Free Trade Agreement aims to unlock services, startups, and digital commerce. UPI fits directly into this vision.
Key Developments from the Visit
Several outcomes emerged alongside the UPI announcement:
Digital Payments Integration
India and Israel agreed to align payment systems. This allows Indian travelers and businesses to transact seamlessly in Israel using UPI.
FTA Momentum
Negotiators confirmed progress toward finalizing the India–Israel FTA. Digital trade has become a central pillar of discussions.
Fintech and Innovation Focus
Both countries committed to deeper fintech collaboration. This includes regulatory dialogue and startup partnerships.
Market and Industry Impact
The impact will extend across multiple sectors.
Tourism and Business Travel
Indian tourists and professionals visiting Israel will no longer rely heavily on cards or cash. This improves convenience and spending confidence.
Fintech Expansion
Indian fintech firms gain an international test case. Israel, known for its innovation ecosystem, offers credibility and learning opportunities.
Cross Border Trade
Small and medium enterprises benefit from faster settlements. As a result, transaction friction reduces significantly.
Strategic Implications for India
UPI in Israel strengthens India’s position as a digital infrastructure exporter. Unlike private platforms, UPI operates as a public good. This model appeals to governments seeking secure and low cost systems.
Moreover, the move complements India’s outreach to other regions. UPI is already live or planned in countries such as Singapore, UAE, and France. Israel now joins this expanding network.
What Comes Next
Implementation timelines have not been publicly disclosed. However, officials indicated that technical teams will begin integration soon.
In the near term, merchant acceptance will be the priority. Later phases may include remittances and interoperability with local wallets.
If executed smoothly, Israel could become a gateway for UPI’s wider adoption in Europe and West Asia.
The decision to enable UPI in Israel reflects strategic intent backed by execution. It strengthens bilateral trust. It deepens economic ties. Most importantly, it positions India as a credible architect of global digital public infrastructure.
As the India Israel relationship evolves, UPI stands out as a practical tool turning diplomacy into daily utility.