QR Share & Pay Option for UPI Transactions Discontinued — Here’s What You Need to Know
QR Share & Pay Option for UPI Transactions Discontinued — Here's What You Need to Know
New rules effective April 4, 2025; Domestic limits unchanged
In a move to tighten transaction security and curb fraudulent activities, the National Payments Corporation of India (NPCI) has disabled QR-based international UPI transactions through the ‘Share & Pay’ feature as reported by The Economics Times. The changes came into effect on April 4, 2025, and were officially communicated through a circular dated April 8, 2025.
The directive applies specifically to Person-to-Merchant (P2M) payments made via QR codes shared by merchants based outside India. Users will no longer be able to scan a shared QR code from their gallery to initiate payments to international merchants. However, physical or live scanning of QR codes at merchant locations abroad remains allowed.
According to Jai Kumar, co-founder of TechFini, “You can still make UPI payments abroad if you physically scan a merchant’s QR code. The restriction only applies to QR codes that are shared and scanned from a device’s gallery.”
As of now, UPI Global services are accepted in around seven countries, including France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE, through Bharat QR codes.
Domestic QR Share & Pay Limits Remain
For domestic transactions, NPCI has reiterated its existing ₹2,000 limit on QR Share & Pay for P2M transactions involving non-verified offline merchants. The circular instructs Payment Service Providers (PSPs) like PhonePe, Paytm, and others to ensure their UPI apps identify and block any transaction that violates this limit.
This means domestic QR codes shared via messaging platforms like WhatsApp will continue to work, but payments exceeding ₹2,000 to non-verified merchants will not be processed.
Wallet Loading via Collect Requests Disabled
In another significant change, NPCI has also prohibited wallet and prepaid card loading via ‘collect requests’. These are merchant-initiated transactions where funds are pulled from the customer’s account after approval. This step is aimed at mitigating fraud risks associated with unauthorized or deceptive collect requests.
Key Highlights:
- International QR Share & Pay disabled: Users can no longer scan shared QR codes for cross-border UPI payments.
- Live scanning still allowed: Physical scanning of QR codes at international merchant locations remains functional.
- Domestic QR Share & Pay capped: A ₹2,000 cap continues for payments to non-verified offline merchants within India.
- No wallet top-up via collect requests: Loading prepaid wallets/cards via collect request is now barred.
These regulatory changes are part of NPCI’s broader efforts to enhance user security, minimize risk, and standardize transaction practices across UPI platforms.
