The UPI Promise and Its Hurdles
Unified Payments Interface (UPI) has revolutionised digital payments in India, but its international story is still unfolding. As of 2026, Indian travellers can use UPI in a growing number of countries, including Singapore, the UAE, France, Bhutan, Nepal,
and Greece. This allows for the convenience of scanning a QR code and paying directly from your Indian bank account. However, acceptance is far from universal. It’s often limited to specific merchants in tourist-heavy areas, and not every shop or cafe will have the system enabled. Relying solely on UPI could leave you unable to pay for a taxi or a meal in a local neighbourhood. Furthermore, international UPI transactions can involve currency conversion markups from your bank.
The Allure and Cost of Credit Cards
Credit cards are widely accepted globally, making them a default choice for many travellers. They offer convenience for hotel bookings, car rentals, and larger purchases. The catch? The costs can add up quickly. Most Indian credit cards charge a foreign currency markup fee, typically ranging from 2% to 3.5% on every transaction. On top of that, an 18% GST is often applied to this fee, further inflating your expenses. Another trap is Dynamic Currency Conversion (DCC), where a foreign merchant offers to charge you in Indian Rupees. While it seems helpful, it often comes with a poor exchange rate, meaning you pay more than if you had paid in the local currency. Using a credit card for cash withdrawal is also extremely expensive, attracting high fees and immediate interest charges.
The Smart Alternative: Forex Cards
This is where forex cards come in as a hero for the savvy traveller. A forex card is a prepaid card that you load with foreign currency before your trip. Its biggest advantage is the ability to lock in an exchange rate at the time of loading, protecting you from currency fluctuations during your travels. This makes budgeting much easier and transparent. Transaction fees are generally lower than those on credit cards, and many providers offer multi-currency forex cards, allowing you to load several currencies onto a single card—perfect for a multi-country trip. They are also more secure than carrying large amounts of cash, as they are PIN-protected and not linked directly to your main bank account.
Why Cash is Still King
In our digital world, it’s easy to forget about cash, but experienced travellers know it’s non-negotiable. Many small businesses, street food vendors, local markets, and taxis abroad may only accept cash. It's also essential for tipping service staff, where cash is often preferred. Furthermore, in case of a technical glitch with card machines, a power outage, or your card being unexpectedly blocked, having a stash of local currency provides a crucial safety net. It ensures you’re never left stranded or unable to make essential small purchases, like paying for a public restroom or buying a bottle of water.
The Ultimate Strategy: A Diversified Wallet
The secret of experienced travellers isn't choosing one 'best' payment method, but creating a diversified financial toolkit. The ideal approach involves a blend of all options, using each for what it does best. Use a forex card for the bulk of your planned expenses to save on fees and lock in rates. Keep a credit card handy as a reliable backup for emergencies, large hotel security deposits, or at places that don't accept forex cards. Use UPI where it's available and convenient for small, quick payments. And always carry a reasonable amount of local cash for tips, transport, and small-scale, authentic experiences where digital payments aren't an option. This balanced approach minimises fees, maximises convenience, and ensures you’re prepared for any situation your adventure throws at you.
