Introduction
Indian travellers going abroad now have more payment choices than ever — and two that come up most frequently are the forex card and UPI. Both can handle foreign spending, but they work very differently, work in different places, and suit different types of travel situations.
Choosing between them is not a binary decision. Understanding how each works helps you decide when to use which.
How Does a Forex Card Work?
A forex card is a prepaid card issued by a bank or authorised money changer, loaded with one or more foreign currencies before departure. Once loaded, transactions abroad are processed in the loaded currency — so the exchange rate is locked at the time of loading, not at the time of spending. This protects against currency fluctuations during your trip.
Forex cards are accepted wherever Visa or Mastercard is accepted — which includes most merchants, hotels, ATMs, and e-commerce platforms globally. They are not dependent on Indian internet connectivity or an Indian SIM card being active.
How Does UPI Work Abroad?
UPI international payments allow Indian travellers to scan local QR codes and pay directly from their Indian bank account. The amount is debited in Indian rupees after a real-time currency conversion at the bank’s rate plus a conversion markup — typically 0.5%–2% depending on the bank.
By early 2026, UPI’s footprint for merchant payments had expanded, reaching a number of countries. Singapore, the UAE, Bhutan, Nepal, France, Sri Lanka, Mauritius, and Qatar are among those now accepting it. But, the level of acceptance varies. While you’ll likely find it at major retailers, popular tourist locations, and food courts in these places, smaller vendors often remain unconnected.
A key practical consideration: UPI international payments usually necessitate an active Indian SIM card for OTP-based verification.
If you switch to a local SIM abroad, receiving OTPs may fail. Some banks now support in-app OTP generation, which resolves this, but it is worth confirming before travel.
What Is the Right Approach for Most Travellers?
Most experienced international travellers use both. UPI for small daily spending in countries where it is genuinely well-supported, and a forex card for large purchases, ATM withdrawals, hotel check-ins, and any destination where UPI acceptance is uncertain.
Carrying both also means you have a backup if one fails — a QR code not working, or a card that has not been enabled for international use. UPI’s expansion worldwide means its slice of the international spending pie will get bigger. Still, for the time being, a forex card is the more dependable go-to payment method for most people.
Conclusion
Using UPI internationally is a real and expanding choice. It’s economical for minor transactions in countries that support it, and you can use the same app you’re familiar with. Forex cards, on the other hand, provide wider acceptance, a fixed exchange rate, and don’t rely on the availability of a network or SIM card. The best strategy isn’t to pick one over the other, but to have both on hand and use each where it works best.
