Indian tourists visiting the UAE can now use India’s Unified Payments Interface (UPI) to make purchases, bringing added convenience and potential savings.
This development follows the recent rollout of UPI payment options across all LuLu hypermarkets in the UAE. Indian visitors can now pay for goods in Indian rupees directly from their bank accounts, without the need to exchange currency or use international credit cards.
With UPI, Indian travelers simply scan a QR code at the point of sale, using UPI-enabled apps or RuPay cards linked to their Indian bank accounts. This allows them to pay in rupees, mirroring the ease of transactions they experience back home. The UPI payment option eliminates the need to carry large amounts of cash or worry about currency exchange rates.
“The UPI payment facility available in the UAE will significantly benefit the over 10 million Indians who visit the country each year, enhancing their shopping experience while boosting local trade,” said V. Nandakumar, Director of Marketing at LuLu Group.
A Game-Changer for High-Value Purchases
Gold and jewellery retailers in the UAE are expected to be among the biggest beneficiaries of this new payment method. With UPI, shoppers can use funds from their Indian bank accounts to make large purchases, such as gold and jewellery for weddings, without the added complications of currency conversion or international transaction fees.
Abdul Salam K.P., Vice-Chairman of Malabar Gold & Diamonds, noted, “Indian shoppers are already familiar with UPI, and they will find the same convenience when purchasing gold in the UAE. This could lead to significant savings for both retailers and customers.”
Wider Adoption Expected
Other sectors, including electronics and luxury goods, are also expected to benefit from the introduction of UPI payments. Retailers are optimistic that the cost-effectiveness of UPI transactions—potentially lower than Visa or Mastercard fees—will attract more Indian tourists to spend on high-end items like smartphones and cameras.
Ashish Panjabi, COO of Jacky’s Group, highlighted the benefits of UPI for both large and small transactions, saying, “UPI is cost-effective and efficient, making it ideal for any purchase size. It’s no surprise that Indian shoppers are already asking about this payment option.”
A Boost to UAE’s Retail Sector
As UPI continues to gain traction, more UAE retailers are expected to adopt this payment method, seeing it as a way to cater to the growing number of Indian tourists. This move could also encourage more spending, as Indian visitors find it easier and more economical to shop in the UAE using their own currency.
The UAE’s retail sector stands to gain significantly from this development, as it aligns with the increasing demand for seamless, cross-border payment solutions. The convenience, security, and potential savings offered by UPI are set to make it a preferred payment method for Indian tourists in the UAE, enhancing their shopping experience while boosting local businesses.
