Maldives: In a landmark agreement aimed at enhancing the travel experience for Indian tourists, India and the Maldives have signed a Memorandum of Understanding (MoU) to introduce India’s Unified Payments Interface (UPI) in the island nation. This move is expected to transform the way Indian travelers make payments in the Maldives, providing a seamless, secure, and cost-effective digital payment solution.
The UPI integration is set to roll out in phases, with the first transactions expected to occur by the end of 2024. This development is part of a broader initiative to enhance digital connectivity and financial inclusion in the Maldives, with India playing a pivotal role in the process.
A Boon for Indian Travelers: With this MoU, Indian tourists visiting the Maldives will soon be able to use UPI to pay for services directly, eliminating the need to exchange currency or rely on international credit cards. This integration is particularly significant given the growing number of Indian tourists who visit the Maldives each year. As of 2023, Indian visitors accounted for a significant portion of the Maldives’ tourism market, and this number is expected to rise further with the introduction of UPI.
“Today, India has taken another step towards exporting its digital innovation to the world,” said the Indian Foreign Minister during the signing ceremony. “This partnership will not only benefit Indian travelers but will also strengthen economic ties between our two nations.”
Streamlining Transactions: The integration of UPI will address several challenges faced by Indian tourists in the Maldives. Currently, Indian travelers must either carry cash in Maldivian Rufiyaa or US Dollars or use international cards that come with high transaction fees. With UPI, they can make instant payments using apps like Google Pay, PhonePe, and Paytm, directly from their Indian bank accounts. This will lead to significant savings on transaction fees and provide greater financial security.
Benefits for Maldivian Businesses: The UPI integration is also expected to benefit local businesses in the Maldives. From luxury resorts to small local vendors, service providers across the Maldives will be able to accept payments from Indian tourists or India based travel agencies that send tourists to Maldives, with ease. This will not only increase sales but also encourage more Indian visitors to explore various parts of the Maldives, contributing to the overall growth of the tourism sector.
As UPI becomes operational in the Maldives, it will join a growing list of countries, including Singapore, the UAE, and Bhutan, where Indian travelers can use UPI for seamless payments. This initiative not only underscores the growing influence of India’s digital payment systems globally but also highlights the strong and evolving partnership between India and the Maldives.
For Indian travelers, this development promises a more convenient and secure payment option, enhancing their travel experience in the Maldives. As the first UPI transactions are anticipated in the near future, the tourism sector in the Maldives is poised for a significant boost, with easier payment solutions now at hand.
This MoU represents a win-win for both nations, fostering deeper economic ties and providing tangible benefits for tourists and businesses alike.
