Alipay+’s UPI Linkup Stalled Over Security, Data Concerns: Report

Alipay+ attempted to link its platform with India's UPI for cross-border payments, but progress has been halted due to national security worries and concerns over customer data management, according to a recent Reuters report. The collaboration would have enabled Indian tourists to use UPI for transactions within Alipay+'s network of over 150 million merchants in China, Hong Kong, and Asia.

Additionally, the plan would have allowed international visitors to utilize Alipay+ for payments in India. The decision to pause the proposal was reportedly made due to the Chinese connections of Alipay+, data security risks, and the possibility of misusing customer data, as noted by three sources familiar with the matter. The Ministry of External Affairs cited "political grounds" for the delay, with no clear path to resolving the concerns at present.

Law enforcement agencies have also expressed fears about money laundering risks and potential cyberfraud if customer data were breached. The government is currently reviewing aspects of the transaction process, storage, management, and dispute resolution mechanisms. However, China-linked entities undergo more stringent scrutiny, the report highlighted.

Alipay+, operated by Singapore-based Ant International (formerly Ant Group), aims to facilitate payments at overseas merchants through its global wallet gateway, connecting over 1.8 billion user accounts to more than 150 million merchants worldwide. Despite the hold on the proposal, India and China are working towards stabilizing their bilateral relations, with Chinese President Xi Jinping scheduled to visit New Delhi for the BRICS summit.

Meanwhile, UPI is expanding internationally, with linkages established in Malaysia, the Philippines, South Korea, Singapore, and France.