Alipay+ submitted the proposal in January. The Singapore-based payments platform belongs to Ant International, which has strong Chinese ties. According to government sources cited in the report, the Ministry of External Affairs stopped the proposal for political reasons, with no indication of an early resolution.

The decision comes despite efforts by India and China to improve diplomatic relations. The proposal was the first significant approach from a China-linked financial business since the 2020 border clashes. India has remained cautious about Chinese investment and technology entering sensitive financial infrastructure.

Law enforcement agencies have flagged potential money-laundering and data-security risks. Their concern is that processing or holding Indian customers’ information through China-linked entities could expose users to cyber-fraud. Although some restrictions affecting Chinese businesses in other sectors have eased, financial services and payments remain closely guarded.

The proposed rollout had two phases. Indian travellers would first have gained access to more than 150 million merchants across the Alipay+ network, including in China, Hong Kong and elsewhere in Asia. Later, overseas visitors to India would have been able to pay through the Alipay+ app at merchants displaying UPI QR codes.