Tel Aviv marked a new chapter in India-Israel relations on Thursday as Prime Minister Narendra Modi witnessed the signing of a landmark agreement integrating India’s Unified Payments Interface (UPI) into Israel’s domestic payment systems. This cross-border pact promises to revolutionize digital transactions between the two nations, making them quicker and more cost-effective.
Speaking after the ceremony on the final day of his Israel visit, PM Modi expressed delight over the development. ‘I’m pleased that an agreement for UPI usage in Israel has been reached,’ he stated, highlighting how this will simplify payments for businesses on both sides, slashing costs and settlement times dramatically.
The integration ties UPI directly to Israel’s payment framework, enabling seamless real-time transfers. This builds on UPI’s proven success at home, where it now dominates 57% of all payment transactions, surpassing cash at 38%, according to a Finance Ministry study. Its appeal lies in effortless usage and instant money movement, with over 65% of users conducting multiple daily transactions via domestic platforms.
Beyond payments, the leaders announced a Critical and Emerging Technologies Partnership, accelerating collaboration in AI, quantum technologies, and critical minerals. They also committed to advancing civil nuclear energy, space exploration, future-ready agricultural solutions, and building model villages.
UPI’s global footprint is expanding rapidly, already operational in over eight countries including UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar. This public, interoperable model has demonstrated that inclusivity and scale can coexist, outperforming private networks. As India and Israel deepen financial ties, businesses stand to gain from frictionless trade, paving the way for stronger economic bonds in an increasingly digital world.