India has put a proposed UPI and Alipay+ payments link on hold amid security and data concerns.
Reuters reported that the proposal had encountered objections from Indian authorities, citing three people familiar with the confidential discussions.
The review covered where payment records would be kept, how the information could be used and the arrangements for handling contested transactions.
One source said India applies tougher scrutiny to financial services proposals involving China-linked entities.
Law enforcement agencies also warned of possible money laundering and data breaches that could leave customers vulnerable to cyberfraud, according to two sources.
A separate source attributed the delay to political considerations raised by India’s foreign ministry.
The person saw little prospect of the outstanding concerns being resolved.
How the Proposed Payments Link Would Work
The plan submitted in January would connect Alipay+ with India’s Unified Payments Interface.
It would give Indian travellers access to the payment network’s more than 150 million merchants, including those in China, Hong Kong and elsewhere in Asia.
Alipay+ also proposed a second stage that would allow international visitors to use its service in India.
Singapore-based Ant International operates Alipay+. It has operated independently since Ant Group reorganised its businesses in 2024.
India’s external affairs, finance and home ministries did not respond to requests for comment.
The Reserve Bank of India, the National Payments Corporation of India and Ant International also did not respond.
Featured image: Edited by Fintech News Singapore, based on images by toia, xvector and goku4501 via Magnific
