Tel Aviv, Feb 26 India and Israel on Thursday announced to deepen their digital and financial partnership by enabling cross-border use of Unified Payments Interface (UPI).
In the process, UPI will connect with Israel’s domestic payments framework to make digital transactions faster and more affordable.
The signing of the UPI linking agreement came on the second and final day of Prime Minister Narendra Modi's visit to Israel.
PM Modi said that “We have decided to establish the Critical and Emerging Technologies Partnership. This will give new momentum to cooperation in areas such as AI, quantum, and critical minerals”.
Prime Minister further stated that “I am pleased that an agreement has been reached for the use of UPI in Israel”.
With this, businesses in both countries are expected to benefit from simplified cross-border payments, cutting down transaction costs and settlement times.
“We will further our work in civil nuclear energy and space fields. Together, we will develop future-ready farming solutions. We will work on creating villages of excellence,” the Prime Minister added.
The UPI ecosystem has proved that inclusion and scale can go together and that a "public, interoperable model can surpass private networks”. UPI is currently operational in more than eight countries -- 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 emerged as the most preferred mode of payment, accounting for 57 per cent of total payment transactions in India, surpassing cash transactions at 38 per cent, primarily due to ease of use and instant fund transfer capability.
Digital payments now dominate everyday transaction behaviour, with 65 per cent of UPI users reporting multiple digital transactions per day.
Preference for UPI is particularly pronounced among younger users in the 18–25 age group, where adoption stands at 66 per cent, indicating a strong behavioural shift toward digital-first financial habits, the study stated.
The report highlights that incentives have played a critical role in reducing cost barriers for merchants and acquiring banks, accelerating merchant onboarding, and building trust in digital payment systems across income groups and geographies.
--IANS
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