Using Phone Pe App for International Transfers: Complete guide to what is supported and alternatives (2024)

PhonePe, one of India's leading digital payment platforms, has become one of the first to support UPI international payments¹.

Can PhonePe be used internationally?

Yes! When activated for international use, you can use PhonePe to make QR code payments from your Indian bank account to select merchants abroad. Here's a guide to using PhonePe to make international payments when traveling abroad.

What is PhonePe International Transfers?

PhonePe International Transfers is a way to make UPI payments to select businesses abroad². This enables PhonePe account holders from India to use their PhonePe app to scan QR codes and transfer payments from their bank account when they travel outside India.

Eligibility for using PhonePe internationally

Currently, UPI international payments through PhonePe is only supported at selected businesses in Bhutan, Singapore, Nepal, UAE, and Mauritius².

To use UPI International, you must have a supported bank account connected to PhonePe³. Here is the list of banks supporting UPI International 👉.

How to activate international use on PhonePe

The activation process for PhonePe International Transfers is straightforward. Here's a step-by-step guide:

1. Open the PhonePe app and tap on your profile picture.
2. Select "UPI International" under the "Payment Settings" section.
3. Tap "Activate" next to the bank account you wish to use for international UPI payments.
4. Enter your UPI PIN to complete the activation process.

UPI International through PhonePe is a new feature that is being gradually rolled out. So you may not see the option to activate UPI International till this feature is available for your account⁴.

UPI international will be deactivated automatically after 90 days from the activation date, but you can also deactivate it manually.

What does it cost to use PhonePe Internationally?

While UPI transfers within India are generally free, the convenience of international payments through UPI comes at a cost. When you use PhonePe for international payments, you essentially make an international transfer from your bank.

So while PhonePe itself does not charge any fee, the costs come from the international transfers fees associated with your bank⁵. This fee varies based on your bank, and an important expense to consider before using UPI internationally.

Important Note on Currency Exchange Rates

In addition to the international transfer fee charged by your bank, there is another hidden expense with international transfers from a bank: the markup on the exchange rate when converting INR to foreign currency.

The banks publish their own exchange rates that are much higher than the mid-market rate you see on Google — and the one used by Wise for international transfers.

So, while the PhonePe app can be a convenient alternative to making payments abroad, the international transfer fee and currency exchange rate can add up to the fees incurred.

Make payments with PhonePe while traveling abroad

Once you have understood the costs involved and activated UPI international on your PhonePe, here's how to pay businesses when you travel abroad from India⁶.

1. Scan the supported merchant's QR code for PhonePe payment.
2. Enter the payment amount, which will be displayed in both local and Indian currency.
3. Tap Pay.
4. Enter your UPI PIN to complete the payment.

Sending money abroad from India with PhonePe

PhonePe can be used to make a payment to international businesses by scanning a QR code, as explained above. However, the PhonePe international transfer facility is not intended to be used for outward remittances. So you will need to look into alternatives for sending money abroad. Make sure to check for any hidden fees and markups on the exchange rate when you compare providers!

We cover the popular options in our guide to sending money to a foreign bank account from India 👉

Receiving money from abroad in India with PhonePe

You can receive money transfers from abroad to your PhonePe account as long as the sender uses a service that supports international transfers to UPI accounts in India. One such service is Wise.

Meet Wise: A convenient option to send money to India

Wise is a convenient, easy-to-use app that supports international transfers to UPI id and bank accounts in India, with one low transfer fee and the mid-market currency exchange rate — which is the same as the one you see on Google.

And if you're living abroad, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

For Businesses: accepting international payments

PhonePe also offers a payment gateway for businesses called PhonePe PG to receive payments from major card providers.

For a convenient alternative for receiving international transfers from abroad, check out Wise Business Account.

Wise Business Account provides businesses and freelancers in India with a convenient alternative to get paid from abroad. When you sign up for Wise Business Account, you get local account details in 8 foreign currencies. This means your international customers can pay you with a local transfer in those currencies!

Wise converts the received amount to INR at the mid-market rate and transfers it to your bank account in India - plus, you get the FIRC in your inbox. All this convenience comes with a transparent upfront fee without any hidden markups.

Get Started with Wise Business account 🚀

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

Sources used in this article:

1. PhonePe Press Release
2. International UPI on PhonePe
3. Supported Banks for UPI International
4. Unable to see UPI International option
5. Charges for UPI International payment
6. Making International UPI Payment

Sources verified on 6 November 2023.

Cover photo by Annie Spratt on Unsplash.