India’s Unified Payments Interface will become operational in Cyprus from next year, marking another step in the international expansion of the country’s real-time digital payments system, Sibi George, Secretary (West) in the Ministry of External Affairs, said on Friday.
“One of the important elements” of the talks was that “UPI will be operational in Cyprus from next year,” George told reporters during a briefing.
The rollout follows an understanding reached between NPCI International Payments Limited and Eurobank Cyprus during Prime Minister Narendra Modi’s official visit to Cyprus on June 15-16, 2025. The MEA had then said the arrangement was aimed at introducing UPI for cross-border payments between the two countries, benefiting tourists and businesses.
For India, the Cyprus launch is more than a payment announcement. It fits into New Delhi’s broader attempt to use digital public infrastructure as an economic and diplomatic bridge with partner countries. For Cyprus, an EU member state with close financial and shipping links, the move could add a new layer to its positioning as a gateway between India and Europe.
Why UPI in Cyprus matters
UPI is India’s instant payments system that allows users to transfer money or make merchant payments in real time through mobile apps linked to bank accounts. In India, UPI has emerged as a cornerstone of India’s modern retail digital payments landscape, especially for small-ticket and high-frequency transactions.
According to NPCI data, UPI processed 22.64 billion transactions worth Rs 29.52 lakh crore in March 2026, with more than 700 banks live on the platform. The Ministry of Finance said UPI’s transaction value crossed Rs 314 lakh crore in FY26, underlining the scale at which the platform now operates domestically.
The Cyprus rollout is expected to help Indian tourists, students, professionals and businesses make payments more easily, depending on the final operating model. It could also support merchant acceptance and cross-border payment flows, although the exact structure of whether it begins with merchant payments, remittances or a broader payment linkage will depend on the implementation by banks and payment partners.
UPI’s international footprint has been expanding gradually. France became one of the first European markets to see UPI acceptance, with payments going live at the Eiffel Tower in February 2024.
Singapore has linked its PayNow system with UPI for cross-border transfers, while UPI acceptance has also been enabled or expanded in markets such as the UAE, Sri Lanka, Mauritius, Nepal, Bhutan and Oman.
NIPL has also signed agreements with countries including Peru, Namibia and Trinidad and Tobago to help build UPI-like real-time payment systems.
India-Cyprus ties get wider economic frame
The payments announcement came during the state visit of Cyprus President Nikos Christodoulides to India from May 20-23, 2026. The MEA said the visit was taking place within a year of Modi’s 2025 trip to Cyprus, the first by an Indian Prime Minister to the country in more than two decades.
It also assumed added significance because of Cyprus’ Presidency of the Council of the European Union. During the visit, India and Cyprus elevated ties to a strategic partnership and discussed cooperation in trade, investment, technology, education, culture, mobility, defence and security, AI, fintech, innovation and research, according to the MEA.
The two countries are also working on a broader five-year framework. A joint declaration issued during Modi’s 2025 visit said an Action Plan would be prepared to guide bilateral relations between 2025 and 2029. It also noted that both sides wanted to deepen cooperation in trade, investment, science, innovation and research.
Key takeaways from the visit
India and Cyprus have upgraded their relationship to a strategic partnership, giving the bilateral engagement a more formal long-term structure. UPI will become operational in Cyprus from next year, building on the NIPL-Eurobank Cyprus understanding reached in June 2025.
The two sides have agreed to strengthen economic cooperation, including through fintech, investment, research, innovation and digital infrastructure.
A strategic MoU between NSE International Exchange, GIFT City, and the Cyprus Stock Exchange is aimed at enabling cross and dual listings, the MEA had said earlier.
India and Cyprus also agreed to deepen defence cooperation, with focus areas including cyber security, maritime awareness and counter-terrorism networks. The two countries established a Joint Working Group on Counter-Terrorism to address radicalisation and cross-border threats.
Cyprus reiterated support for India’s permanent membership in a reformed United Nations Security Council, while India has maintained its long-standing support for a settlement of the Cyprus question under the UN framework.
The two sides have discussed a migration and mobility arrangement and a social security agreement, which could matter for professionals and workers moving between the two economies.