India, Canada target 2026 trade pact as UPI eyes wider Canadian acceptance

India and Canada aim to conclude a Comprehensive Economic Partnership Agreement by end-2026, alongside plans to expand UPI in Canada through payment-service-provider partnerships. The initiatives could support cross-border merchant payments, tourism, remittances and SME trade.

— Source publishedFri, 28 Aug, 2026, 11:47 IST·First seen Fri, 28 Aug, 2026, 11:53 IST·Source BL · Consumer & Economy

What happened

India and Canada aim to conclude a CEPA by end-2026 and expand UPI use in Canada via payment-service-provider partnerships, supporting cross-border merchant

Key facts

  • Canada-India Comprehensive Economic Partnership Agreement targeted by end-2026
  • Bilateral trade target: CAD 70 billion (about ₹4.65 lakh crore) by 2030
  • Next India-Canada Economic and Financial Dialogue in 2027

Why this matters

Payments providers, banks and merchant acquirers should prioritize Canadian PSP partnerships with UPI to secure early distribution ahead of potentially higher India-Canada trade and travel flows.

What to watch

  • Announcement of named Canadian PSP, acquirer, bank or Interac-adjacent partnerships for UPI acceptance.
  • CEPA negotiating milestones, especially digital trade, financial-services access, data-transfer and e-commerce provisions.
  • Merchant acceptance counts and geographic coverage beyond diaspora-led retail categories.
  • RBI, NPCI, FINTRAC and Canadian payments-regulator guidance on cross-border UPI flows, AML controls and settlement structures.
  • Growth in India-Canada air travel, student flows, remittances and SME import/export volumes.
  • Evidence that merchants receive CAD settlement, competitive FX pricing and lower chargeback/fraud costs versus card acceptance.
  • Prioritize PSP, acquirer and wallet partnerships with existing Canadian merchant distribution rather than pursuing broad direct merchant onboarding.
  • Launch acceptance pilots in Toronto, Vancouver and tourist-heavy corridors, targeting Indian grocery, hospitality, education, travel and healthcare merchants.
  • Package UPI acceptance with transparent FX, instant refunds, multilingual checkout and settlement options in CAD to overcome merchant integration friction.
  • Build cross-border fraud, AML/KYC and data-governance controls early; Canadian regulatory readiness will determine scale more than technical connectivity.
  • Use CEPA milestones to recruit SME trade-platform partners, offering payment acceptance alongside invoicing, supplier payments and cross-border working-capital products.

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