Luxury travel surge from India spurs wider UPI payment acceptance across UAE

The rapid expansion of high-end and leisure travel between India and the United Arab Emirates is fuelling demand for instant digital payments, as visitor spending broadens beyond conventional retail into attractions, hospitality and premium services, according to Ritesh Shukla, Managing Director and Chief Executive Officer of NPCI International Payments Limited (NIPL).

NIPL is the overseas arm of the National Payments Corporation of India, tasked with extending the global reach of India’s Unified Payments Interface (UPI).

Indian visitor numbers drive payment shift

The push for wider UPI adoption comes as the UAE remains a top destination for Indian travellers, bolstered by strong tourism, business and cultural ties. Shukla said that approximately 8.6 million Indian visitors arrived in the UAE during 2025, generating growing appetite for familiar and seamless payment options throughout their trips.

“UAE is one of the most important markets in UPI’s global expansion journey, driven by strong travel, tourism and business linkages with India,” Shukla stated. “With approximately 8.6 million Indian travellers visiting the UAE in 2025, NIPL’s focus has been on enabling a familiar, secure and seamless payment experience throughout their travel journey.”

Partnerships expand acceptance across sectors

To meet this demand, NPCI International has collaborated with payment processors including Network International, NeoPay and Magnati to increase UPI acceptance in areas frequented by visitors. The platform is already active at major outlets such as Dubai Duty Free and Lulu Hypermarket, and is being progressively introduced across hospitality, retail, supermarkets and travel-related enterprises.

The rollout also targets premium tourism offerings. A recent tie-up between NeoPay and Emaar Entertainment enabled UPI payments for online reservations at At the Top, Burj Khalifa, letting Indian travellers buy tickets using their preferred payment method before reaching the UAE.

“We are also continuing to expand acceptance across new and high-value experiences,” Shukla said. “A recent example is the enablement of UPI for online bookings at At the Top, Burj Khalifa.”

Broadening merchant base and long-term vision

The growth of luxury and experiential travel is widening the range of merchants adopting digital payments. According to NPCI International, UPI acceptance in the UAE now covers attractions, hospitality, food and beverage, jewellery, supermarkets and travel retail, reflecting a shift in how travellers spend across multiple touchpoints rather than confining purchases to traditional shopping venues.

Shukla indicated that the company’s longer-term aim is to make digital payments available at every stage of a visitor’s journey, from transport and entertainment to shopping and dining.

“Our goal is to enable a seamless payment experience throughout a traveller’s journey, from transport and attractions to shopping and everyday purchases,” he said.

For UAE merchants, growing UPI uptake provides access to one of the world’s largest outbound travel markets. NPCI International noted that UPI is now the biggest real-time payment system globally by transaction volume, accounting for nearly 50 percent of all instant payment transactions worldwide, while more than 65 million merchants in India accept the platform.

Looking ahead, the company sees additional opportunities to strengthen payment links across the Gulf as tourism flows continue to rise. “The GCC is a strategic priority for NPCI International, given the scale of travel and economic activity between India and the region,” Shukla said.

As affluent travellers increasingly demand seamless experiences both online and on the ground, the ability to pay instantly using familiar platforms is becoming an integral part of the luxury travel offering, creating fresh prospects for destinations and merchants across the UAE.