India has stalled a January 2026 proposal by Alipay+ to link with its Unified Payments Interface (UPI) for cross-border transactions. The Indian government cited "political grounds," national security concerns, and data-security risks. Law enforcement agencies also flagged potential money-laundering and cyberfraud vulnerabilities. The proposal represents the first financial services bid by a China-linked entity since the deadly 2020 border clash, highlighting ongoing geopolitical tensions despite recent efforts to stabilize bilateral relations.
Alipay+ UPI integration proposal
- ▪Alipay+ submitted a proposal in January 2026 to link its cross-border payment network with India's Unified Payments Interface (UPI).
- ▪The proposed Alipay+ and Unified Payments Interface (UPI) link aimed to allow Indian travellers in China, Hong Kong, and other parts of Asia to pay at over 150 million merchants.
- ▪The second phase of the Alipay+ proposal would have enabled international visitors to use Alipay+ to make payments within India.
National security concerns
- ▪Indian law enforcement agencies raised concerns that the Alipay+ payment link could pose money-laundering risks.
- ▪The Indian government stalled the Alipay+ proposal to link with the Unified Payments Interface (UPI) due to national security concerns.
Customer data storage risks
- ▪Indian law enforcement agencies flagged risks of data breaches from the Alipay+ link that could expose customers to cyberfraud.
- ▪The Indian government raised concerns regarding how transaction data would be processed, stored, managed, and secured under the Alipay+ proposal.
India-China bilateral relations
- ▪India's foreign ministry cited "political grounds" as the reason for stalling the Alipay+ integration proposal.
- ▪The Alipay+ proposal was the first made by a China-linked entity in India's financial services sector since the deadly 2020 border clash between India and China.
- ▪India maintained strict restrictions on Chinese investments following the 2020 border clash, though it eased some restrictions in March 2026.
Cross-border payment systems
- ▪Alipay+ is operated by Singapore-based Ant International, which was spun out of China's Ant Group as an independent company in 2024.
- ▪The market size for outbound cross-border payments from the Asia-Pacific region is projected to reach $23.8 trillion by 2032, nearly doubling from 2024.
- ▪Alipay+ connects 2 billion user accounts across 50 global payment partners to merchants in more than 220 destination markets.
Story comments
Loading comments…