World · India Bureau
NPCI Rolls Out NFC-Based UPI Tap & Pay Service for India
The National Payments Corporation of India has launched UPI Tap & Pay, enabling contactless payments at compatible point-of-sale terminals using near-field communication technology. The service is part of broader efforts to expand digital payment options across the country.
LSN India ·
India's payments infrastructure received a significant upgrade with the introduction of UPI Tap & Pay, a contactless payment solution developed by the NPCI. The service leverages near-field communication (NFC) technology to allow customers to complete transactions by tapping their smartphones at participating merchant terminals, streamlining the payment process without requiring internet connectivity for individual transactions.
The new offering aims to address gaps in India's existing UPI ecosystem by providing an alternative payment method at brick-and-mortar retail locations. Users can initiate payments through compatible mobile devices, with transactions processed securely through the UPI network. The system is designed to operate seamlessly with existing POS infrastructure being upgraded to support NFC functionality.
Alongside UPI Tap & Pay, the NPCI has introduced MyUPI, a complementary service intended to enhance user control over digital payments. The combined rollout reflects the regulatory body's strategy to make digital transactions more accessible and user-friendly for India's expanding digital payment base.
The launch comes as India continues to deepen its digital payments adoption, with UPI already handling millions of daily transactions. Industry observers expect the addition of contactless payment options to further accelerate the shift away from cash-based transactions, particularly in urban and semi-urban markets where merchant terminal penetration is increasing.