India and Israel have signed an agreement to connect their respective payment systems, enabling cross-border use of the Unified Payments Interface (UPI).
India and Israel have formalised an agreement to integrate their national payment systems, allowing users in both countries to conduct cross-border transactions through India's UPI.
The pact connects UPI, one of the world's largest real-time digital payment platforms, with Israel's domestic payments framework. The integration is designed to simplify transactions for trade, tourism, and remittances, while reducing reliance on traditional banking infrastructure and lowering settlement times and transaction costs.
The agreement was signed during Indian Prime Minister Narendra Modi's two-day visit to Israel, his second since 2017. Commenting on the development, Modi stated that he was pleased an agreement had been reached for the use of UPI in Israel, and that the move would give new momentum to cooperation in areas such as AI, quantum, and critical minerals.
UPI's expanding international footprint
The Israel agreement adds to a growing list of countries where UPI is operational. The platform currently functions across more than eight markets, including the United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar, enabling real-time cross-border digital payments in each.
Beyond bilateral payment linkages, India has signed digital cooperation agreements with 23 countries to support the adoption of its broader Digital Public Infrastructure framework, known as India Stack. This encompasses digital identity systems and payment infrastructure, with the stated aims of boosting remittances and advancing financial inclusion.
Broader strategic context
The payment agreement forms part of a wider set of commitments made during Modi's visit. The two countries announced the establishment of a Critical and Emerging Technologies Partnership, covering areas such as artificial intelligence, quantum technologies, and critical minerals. Cooperation was also agreed in civil nuclear energy, space, and agriculture, including a joint initiative to develop what PM Modi described as 'villages of excellence', a programme targeting agricultural productivity and rural development through advanced technologies.
