Does UPI Work in the USA for Payments?

Unified Payments Interface (UPI) is a widely adopted digital payment system in India, known for its instant, real-time transactions. UPI, in its current form, is primarily designed for transactions within India. It does not directly facilitate local payments or peer-to-peer transfers within the United States.

Understanding UPI’s Scope

UPI operates as a real-time payment system developed by the National Payments Corporation of India (NPCI). It enables instant money transfers between bank accounts through mobile devices, using a phone number or a Virtual Payment Address (VPA). This system integrates various bank services into a single platform for peer-to-peer and merchant transactions.

Transactions require an Indian bank account and a phone number registered in India. While UPI’s influence is expanding globally through partnerships for cross-border remittances, these arrangements are distinct from direct UPI functionality for local payments or peer-to-peer transactions within the U.S. Some Indian banks allow Non-Resident Indians (NRIs) to use UPI for Indian Rupee (INR) transactions in India, even with an overseas mobile number. This pertains to transactions within India’s financial ecosystem, not local U.S. payments.

Digital Payment Landscape in the USA

The United States has a digital payment ecosystem. Credit and debit cards are widely accepted for in-store and online transactions, with major networks including Visa, Mastercard, American Express, and Discover. These card networks offer convenience and attractive reward programs.

Digital wallet solutions and peer-to-peer (P2P) payment platforms are used. Popular P2P services include Zelle, which facilitates direct bank-to-bank transfers, and Venmo, used for splitting bills. PayPal supports transactions between individuals and businesses, domestically and internationally. Mobile wallet solutions like Apple Pay and Google Pay allow users to link their cards for contactless payments in stores and online. These systems are integrated with U.S. bank accounts and the domestic financial infrastructure.

Accessing and Using Funds in the USA

Individuals from other countries, including India, making payments and accessing funds in the USA must use methods integrated with the U.S. financial system. International credit and debit cards are accepted across the United States. These cards may incur foreign transaction fees, typically ranging from 1% to 3% of each purchase or ATM withdrawal amount. Some banks or ATMs may also charge additional fees for cash withdrawals.

Opening a U.S. bank account provides access to local digital payment applications like Zelle and Venmo, as these require a U.S. bank account for full functionality. The process for non-permanent residents involves providing identification such as an unexpired passport, proof of a U.S. address (e.g., utility bill or lease agreement), and a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for tax reporting purposes. Many banks require an in-person visit to a branch to complete the account opening process.

Traditional payment methods such as cash and traveler’s checks remain viable options for transactions, though their use has declined with the rise of digital payments. For sending money from India to the USA, international money transfer services like Western Union or wire transfers through banks are common. These services allow funds to be sent from an Indian bank account to a recipient in the U.S., often requiring details such as the beneficiary’s name, bank name, SWIFT code, and account number. The Reserve Bank of India (RBI) sets limits on outward remittances, such as up to USD 250,000 per financial year under the Liberalised Remittance Scheme for various purposes.