
In a historic move that underscores the deepening economic and technological partnership between India and Cyprus, the National Payments Corporation of India (NPCI) and Eurobank of Cyprus have signed a memorandum of understanding (MoU) to introduce Unified Payments Interface (UPI) services in Cyprus. The agreement, announced during Prime Minister Narendra Modi’s official visit to Cyprus, is poised to revolutionize cross-border transactions, benefiting tourists, businesses, and investors in both countries.
UPI, India’s flagship real-time payment system, has already transformed the way Indians transact, enabling seamless, instant digital payments. With over 50% of the world’s digital transactions now taking place in India via UPI, its global expansion is a testament to India’s fintech leadership. Cyprus becomes one of the latest countries to embrace this innovation, following in the footsteps of France and other early adopters.
The integration of UPI in Cyprus will allow Indian tourists and businesses to make payments effortlessly, while Cypriot entities gain access to a vast Indian consumer base. This move is expected to streamline cross-border financial connectivity, reduce transaction costs, and foster greater economic engagement between the two nations.
Prime Minister Modi’s visit to Cyprus, the first by an Indian PM in over two decades, marked a significant milestone in bilateral relations. The MoU on UPI was among several key outcomes of high-level talks and business roundtables held in Limassol, co-chaired by Modi and Cypriot President Nikos Christodoulides. Both leaders emphasized the importance of digital innovation and financial inclusion as drivers of economic growth and mutual prosperity.
Cyprus, already a top 10 source of foreign direct investment (FDI) for India with cumulative inflows of $15 billion, is strategically positioned as a gateway to Europe and the Mediterranean. The UPI partnership is expected to further enhance Cyprus’s role as a financial hub, attracting more Indian investors and facilitating smoother business operations.
The introduction of UPI services in Cyprus will have immediate benefits for tourists, who can now avoid the hassle of currency exchange and enjoy secure, instant payments using their mobile devices. For businesses, particularly in hospitality, retail, and services, the move opens up new opportunities to tap into India’s growing outbound travel market.
Additionally, the MoU between the NSE International Exchange at Gujarat’s GIFT City and the Cyprus Stock Exchange will enable dual listings and cross-border investment flows, further cementing economic linkages.
India’s digital payments revolution, powered by UPI, is increasingly seen as a model for other countries seeking to modernize their financial systems. Prime Minister Modi hailed UPI as a symbol of India’s innovation-driven growth, noting that over 100,000 Indian startups are now exporting solutions worldwide.
The collaboration with Cyprus marks a bold step in India’s fintech diplomacy, showcasing how digital infrastructure can serve as a bridge for deeper international cooperation.