India pauses Alipay+ UPI integration over data and national security
Business
India has paused Alipay+'s plan to link its payment system with Unified Payments Interface (UPI), mainly because of worries about data security, customer data storage and use, and national security.
This was the first proposal by a China-linked entity in the financial services sector since tensions rose after the 2020 border clash.
Alipay+ proposed payments at 150 million+ merchants
Alipay+ wanted to let Indian travelers pay easily at more than 150 million merchants in its network across China, Hong Kong, and other parts of Asia and also help international visitors spend in India.
But concerns about possible data breaches and money laundering made Indian authorities hit pause, especially given ongoing sensitivities around Chinese tech projects.