PhonePe announced on Tuesday the launch of a service that enables the fintech company's Indian customers who are going overseas to pay international traders which use Unified Payments Interface (UPI).

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UPI international supports merchant outlets with a native QR (quick response) code in the UAE, Singapore, Nepal, and Bhutan. As with international debit cards, customers will be able to create money directly in a foreign exchange from there own Indian bank. PhonePe, which is backed by Walmart, claims to be the initial Indian financial services app to initiate the customer support.

"UPI international represents the first main step in bringing UPI to the rest of the world," said Rahul Chari, co-founder and chief technology officer of PhonePe. "I am confident that this launch will verify to be a game-changer and totally alter the manner in which Indians travelling abroad make purchases at foreign merchant outlets. The entire globe should experience UPI."

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PhonePe recently received $350 million in financing from General Atlantic at a pre-money asset value of $12 billion, making it India's most valuable fintech company.

In accordance with a report by Bain and Company, the funding will enable PhonePe to expand operations and vie with Google Pay and Paytm. Amazon Pay throughout Indian financial services is expected to be valuable $350 billion by 2026.

Users of PhonePe can initiate their UPI-linked bank for the service at the trader location or before their own international trip via the PhonePe App. Customers would be ordered to enter their UPI PIN to activate customer support.

At international merchant outlets, Indian customers must use foreign reserves, or their payment or foreign exchange cards, to make purchases. With PhonePe's feature, they can now pay with UPI using their Indian bank account.

This year, the National Payments Corporation of India (NPCI) and NPCI International Payments Limited plan to expand UPI International to additional countries. NPCI created UPI. PhonePe was introduced in December 2015 and is now India's most popular payment app. With 435 million registered users, PhonePe is currently used by one in four Indians.(94percent unique)