Jerusalem: India and Israel signed a landmark agreement to enable cross-border use of India’s Unified Payments Interface (UPI), strengthening digital and financial cooperation between the two nations.
The agreement, signed during Prime Minister Narendra Modi’s second and final day of his visit to Israel, will integrate UPI with Israel’s domestic payment framework. The move is expected to make digital transactions between the two countries faster, more seamless, and cost-effective.
UPI to Enable Faster, Low-Cost Cross-Border Transactions
Expressing satisfaction over the agreement, Prime Minister Modi said he was pleased that a pact had been finalized to facilitate the use of UPI in Israel.
The integration is expected to benefit businesses and individuals in both countries by simplifying cross-border payments, reducing transaction costs, and cutting settlement time.
The initiative is part of broader efforts to deepen India-Israel digital connectivity and fintech collaboration.
Focus on Critical and Emerging Technologies
In addition to the UPI agreement, the Prime Minister announced that both countries have decided to establish a Critical and Emerging Technologies Partnership.
This framework will accelerate cooperation in key areas such as Artificial Intelligence (AI), quantum technologies, and critical minerals. The two nations will also expand collaboration in civil nuclear energy and space sectors.
The leaders further emphasized joint efforts in developing future-ready agricultural solutions and building model “excellent villages” through technology-driven rural development initiatives.
UPI Model Gains Global Recognition
The UPI ecosystem has emerged as a global example of how financial inclusion and scalability can go hand in hand. The interoperable public digital payments model has demonstrated that a public framework can outperform private networks in terms of accessibility and reach.
Currently, UPI is operational in more than eight countries, including the United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar.
According to an independent study commissioned by India’s Finance Ministry, UPI has become the most preferred mode of payment in India, accounting for 57 percent of total payment transactions—surpassing cash transactions, which stand at 38 percent.
The platform’s ease of use and instant money transfer capability have driven widespread adoption, with over 65 percent of users conducting multiple transactions daily on the indigenous digital platform.
The India-Israel UPI agreement marks a significant step toward expanding global digital payment networks and reinforcing strategic fintech cooperation between the two innovation-driven economies.
