It runs as an open source application programming interface (API) on top of the Immediate Payment Service (IMPS),[3][4][5][6] and is regulated by the Reserve Bank of India (RBI).

[15] RBI in 2014 released a vision statement for a period of four years that indicated commitment towards building a safe, efficient, accessible, inclusive, interoperable, and authorized payment and settlement system in India.

UPI works on a four-pillar push-pull interoperable model where there will be a remitter/beneficiary front-end PSP (payment service provider) and a remitter/beneficiary back-end bank that settles the monetary transaction for the users.

[23][24] Countries such as Brazil, Bahrain, Saudi Arabia, Singapore, the United States, and the European Union are exploring options to implement a UPI-like system in their own domestic markets.

[51] The RBI governor Shaktikanta Das launched the service called UPI 123PAY on 8 March 2022, with an aim to help almost 40 crores (400 million) feature phone users in the country.

[57] At the Global Fintech Fest 2024, NPCI, Indian Railway Catering and Tourism Corporation (IRCTC), and CoRover unveiled "Conversational Voice Payments" for UPI, a huge advancement in the convenience of online transactions.

In addition to making financial transactions for users easier, UPI Vouchers offer a smooth digital payment option for a variety of scenarios, including corporate gifts, government programs, and others.

Without the need for a separate on-boarding procedure for CBDC for retailers, it will enable users to scan the existing UPI QR code and make payments using digital rupee.

[112] On 26 January 2022, UK based fintech startup Transact365 enabled UPI for global merchants with real time currency conversion facility that will help them do business in India independent of local presence.

[114] With the release of the Payments Vision 2025 document on 17 June 2022, RBI will push for internationalization of UPI with nations using United States dollar, Pound sterling and Euro under bilateral treaties.

[119] NIPL signed a definitive agreement with PPRO Financial on 27 April 2023 that will enable acceptance of UPI among international payment service providers (PSPs) and global merchant acquirers.

[122] Google and NPCI signed MoU for UPI expansion abroad with the aim to make sure that Indian tourists visiting other countries have a smooth international transaction experience.

After a thorough KYC check based on a passport and valid visa, the service is available through approved PPI issuers at airports, hotels, specified money exchange sites, and other touchpoints.

Due to increasing remittances to India, NIPL with Western Union is going to integrate UPI to help the Indian diaspora receive and send money abroad with ease.

[136] To save the cost borne by Indians living abroad when sending money back home, NPCI is planning to move 32 million expatriate population from SWIFT to UPI.

[138][139][140] From 30 April 2023, international mobile numbers from Malaysia, Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE, and the UK will be able to access the UPI transaction facility.

[152][153] In August 2021, Dish TV introduced UPI scan and pay feature for the first time in a nationwide rollout due to COVID-19 restriction and heavy demand for no contact digital payment solutions.

[154] From 31 August 2021, Netflix integrated UPI AutoPay feature for Indian subscribers which was until now limited to credit and debit cards from Visa, Mastercard, American Express, and Diners Club International.

[165] On 25 January 2024, North Western Karnataka Road Transport Corporation (NWKRTC) achieved a significant milestone by processing over one lakh UPI transactions, valued at over ₹2 crore.

[170] With the goal of reducing reliance on third-party apps, minimizing unsuccessful payments, and streamlining the checkout process, Zomato and Swiggy launched their own UPI services.

To make payments easier, Indians living abroad who have mobile numbers in the UAE can download the PhonePe app and link their current NRE and NRO accounts.

[219] This strategic initiative, according to Adel Ali Al-Malki, senior executive vice president of QNB Group Retail Banking, would boost the travel and hospitality industries and enable local businesses to prosper in a fast-paced digital economy.

The service will be formally launched via video conference by President Ranil Wickremesinghe of Sri Lanka and Prime Minister Narendra Modi, according to the Reserve Bank of India (RBI).

[226] During a bilateral virtual summit on 21 March 2022, India proposed early integration of UPI with Australian New Payment Platform to improve higher education access and tourism potential.

[235] According to Federal Reserve Board of Governors member Christopher Waller, in order to expedite the creation of a instant payments network, the United States may investigate the possibility of integrating UPI with a few of its private banks.

[242] During the 6th session of the India-Ethiopia Joint Trade Committee (JTC) meeting at Addis Ababa, Indian delegation sought to collaborate with Ethiopia on digital payment solution space by integrating UPI and Ethswitch.

[245] The media was notified by the Ministry of Commerce and Industry on 19 June 2024, that negotiations are underway between India and Cambodia to collaborate on UPI-based digital payments in order to foster bilateral trade and tourism.

[246] During the India-Zimbabwe Joint Trade Committee meeting in New Delhi on 13 May 2024, it was decided to look into signing a Memorandum of Understanding (MoU) on regulatory cooperation in digital transformation solutions and fast payment systems.

In order to share UPI as part of digital public infrastructure solutions, India signed memorandums of understanding with Antigua & Barbuda, Armenia, Sierra Leone, and Suriname in June 2023.

[252] A collaboration between NIPL and the Ministry of Digital Transformation (MDT) was announced on September 27, 2024, with the aim of creating a UPI-like real-time payments infrastructure that can facilitate P2P and P2M transactions for Trinidad and Tobago.