The move will ease payments for its tourists, enabling them to use its UPI with merchants in countries that have signed up with the platform
Published Mon, Feb 2, 2026 · 10:34 PM
[NEW DELHI] India is in talks with China-related Ant International to allow the linkage of digital payments platform Alipay+ to its leading instant payment system for cross-border transactions, two government sources told Reuters.
The move would help make payments easier for Indian tourists, as they would be able to use India’s Unified Payments Interface (UPI) with merchants in countries that have signed up with Alipay+.
The talks between the Indian government, central bank officials and Singapore-based Ant International – which was founded by China’s fintech giant Ant Group and now operates independently – reflect the further warming of ties with China.
Alipay+ connects about 1.8 billion user accounts with over 150 million merchants across more than 100 markets, its website states. The company has a significant presence in Asia, Europe, the Middle East and Latin America.
India’s UPI has become ubiquitous within the country, processing close to 18 billion transactions a month.
The government and the central bank have been keen to extend its use across borders to help Indian travellers and the diaspora pay in its currency, reducing friction and costs involved with cross-border payments.
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The government sources declined to be identified as the discussions have not been made public.
India’s finance ministry, the Reserve Bank of India, the National Payments Corporation of India and Ant International did not immediately respond to requests for a comment.
A final decision to allow Alipay+ would be taken after security considerations, the sources said.
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“There are sensitivities involved – in terms of geopolitical positioning or securing the country’s digital infrastructure and data because of Alipay’s roots to China,” one of them said.
Warming ties
India imposed tight investment rules on Chinese investors after a border stand-off in 2020, and they remain in force.
Strained ties after the stand-off slowed the exchange of capital, technology and talent.
The South Asian nation tightened its scrutiny of investments by China-based firms or those with China-linked ownership, stalling deals including BYD’s proposed US$1 billion investment in an electric car venture.
In the face of punishing US tariffs, however, New Delhi began cautiously rekindling ties with Beijing in 2025.
Indian Prime Minister Narendra Modi visited China for the first time in seven years, and discussed ways to improve ties when he met Chinese President Xi Jinping.
In October 2025, India resumed direct commercial flights to China after a five-year hiatus, and eased visa rules for Chinese professionals. REUTERS
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