Wise gains key approval as India reshapes global cross-border payments

The approval will enable Wise to enhance its services for Indian exporters, providing them with faster and cheaper ways to receive payments from international customers. This is expected to help local businesses better retain their earnings and expand their global reach. The company, which already facilitates about 10% of India’s inbound international remittances, is set to bolster its presence with a full-stack office in Hyderabad and plans to hire hundreds of new employees in the coming years.

Wise’s entry comes as India is actively working to establish new cross-border payment linkages with multiple countries, including the UAE and other regional neighbors, building on existing arrangements with Sri Lanka, Bhutan, and Nepal. The RBI is also collaborating with central banks in Southeast Asia to create a platform for instant cross-border transactions, a move that aligns with the region’s push for greater financial integration.

These initiatives are part of a larger strategy to reduce reliance on dominant global currencies and payment networks. By promoting Rupee-based trade settlements and forging direct currency settlement mechanisms with partners like Russia, India is positioning its currency for a more prominent role in international trade.

At the heart of India’s payment transformation is the Unified Payment Interface (UPI), a real-time payment system developed by the National Payments Corporation of India (NPCI). Launched in 2016, UPI has revolutionized India’s domestic digital payments, accounting for 83% of the volume in 2024. Its key advantages include instant transactions, interoperability, low costs, and enhanced security.

Now, India is taking this successful model global. Key initiatives include:

• International Merchant Payments: Indian travelers can use UPI-supported apps for QR code-based payments in countries like Bhutan, Singapore, Nepal, the UAE, Mauritius, and France.
• Cross-Border Remittances: The integration of UPI with systems like Singapore’s PayNow allows for instant and cost-effective fund transfers, benefiting the Indian diaspora.
• Global Expansion: NPCI is driving UPI’s adoption worldwide, with agreements to launch UPI-modeled systems in countries like Peru and Namibia by 2026-2027.

This global expansion has not been without challenges. The Indian government is in talks with the Financial Action Task Force (FATF), a global money-laundering watchdog, to address compliance requirements for smaller cross-border payments that currently hinder UPI’s growth compared to networks like Visa and Mastercard. Officials are advocating for the FATF’s “travel rule,” which mandates the collection of sender and receiver information, to be technology-neutral.

In tandem with these regulatory efforts, innovations are emerging to support small and medium-sized businesses (SMBs). For instance, the recent launch of a unified platform for cross-border payments by PayU-backed BRISKPE provides Indian SMBs with efficient tools for managing international transactions, including account-to-account transfers and wallet-based collections.

The convergence of regulatory reforms, technological innovation, and strategic international partnerships signals a new era for cross-border payments in India. As Wise prepares to launch its enhanced services and UPI continues its global expansion, the vi