India is in discussions with China-related Ant International to allow integration of the digital payments platform Alipay+ with the country’s instant payments system, Unified Payments Interface (UPI). The move could ease cross-border transactions for Indian travellers across merchants that have signed up with Alipay+, Reuters reported, citing two government sources.This would heavily simplify the overseas spending and reduce the costs associated with cross-border payments.Ant International, headquartered in Singapore and founded by China’s Ant Group, now operates independently. According to Reuters, talks between Indian government and central bank officials with the firm indicate a thaw in bilateral economic engagement between New Delhi and Beijing.Alipay+ currently connects about 1.8 billion user accounts with more than 150 million merchants across over 100 markets, including several in Asia, Europe, the Middle East, and Latin America.Meanwhile, UPI has become a cornerstone of India’s fintech infrastructure, handling nearly 18 billion transactions monthly.Indian authorities have been keen to extend UPI’s international reach to enable smoother digital payments in Indian rupees for travellers and overseas Indians.However, final approval for the Alipay+ integration will depend on security evaluations.“There are sensitivities involved in terms of geopolitical positioning or in securing the country’s digital infrastructure and data because of Alipay’s roots in China,” Reuters reported, citing sources.India continues to enforce strict investment regulations for Chinese firms introduced after the 2020 border standoff, and those curbs remain in place.

Mending India-China ties

Strained relations between India and China after their 2020 border standoff slowed the flow of capital, technology and talent between the two neighbours, with New Delhi tightening scrutiny of investments by China-based firms or those with China-linked ownership, according to Reuters. The curbs have stalled or delayed several projects, including Chinese electric vehicle maker BYD’s proposed 1 billion dollar investment plan in an India EV venture.In the past year, however, India has begun cautiously rekindling engagement with Beijing as it navigates punishing U.S. tariffs and shifting global trade patterns, officials said. Prime Minister Narendra Modi visited China in 2025 for the first time in seven years and discussed ways to improve ties in a meeting with Chinese President Xi Jinping.