UPI Gets a New ‘Tap and Pay’ Feature: Pay Up to ₹5,000 Without Entering a PIN

Your phone can now work more like a contactless card at NFC-enabled payment terminals

UPI payments are becoming faster and simpler. The National Payments Corporation of India (NPCI) has introduced a new ‘Tap and Pay’ feature that allows users to make payments by simply tapping their smartphone on an NFC-enabled Point-of-Sale (PoS) terminal.

The new feature can allow payments of up to ₹5,000 in a single transaction without entering a UPI PIN, making it particularly useful for quick, low-value payments at shops and other establishments.

Just Tap Your Phone to Pay

Unlike conventional UPI payments, where customers generally scan a QR code and enter their PIN, the new system uses Near Field Communication (NFC) technology.

Users with an NFC-enabled smartphone can bring their phone close to a compatible PoS machine to initiate the payment. The transaction is then processed through the internet connection of the PoS terminal.

This means a user's phone does not necessarily need an active internet connection at the time of payment, provided the PoS terminal has the required connectivity.

₹5,000 Limit Without UPI PIN

One of the key attractions of the new feature is the ₹5,000 transaction limit without requiring a UPI PIN.

The feature is intended to make everyday payments more convenient, particularly when customers are making small purchases and want to avoid the additional steps involved in scanning a QR code and entering a PIN.

However, users will still need to follow the applicable security and authentication requirements of their payment service and account.

Not Limited to One UPI App

The ‘Tap and Pay’ facility is not restricted to a single UPI application. According to reports, users of popular platforms such as PhonePe, Google Pay and Paytm can also benefit from the facility, subject to support from their respective apps, banks and payment terminals.

For the feature to work, the smartphone and payment terminal need to support NFC-based transactions.

What Is MyUPI?

Along with ‘Tap and Pay’, NPCI has also introduced ‘MyUPI’, an AI-powered customer assistance platform.

MyUPI is aimed at users who want to manage and view their UPI-related payments across different banks and applications from a single place.

The platform is reportedly built using NPCI's language model ‘Pini’ and is designed to make accessing and managing UPI information easier for users.

New Focus on Payment Security

MyUPI also includes security-related features. Users who suspect fraudulent activity can take action to stop a UPI payment process.

The platform also allows users to remove their mobile number associated with receiving payments, providing greater control over their payment-related information.

A Step Towards Faster Digital Payments

The introduction of ‘Tap and Pay’ marks another step in the evolution of India's digital payment ecosystem. While QR-code payments have made UPI highly accessible, NFC-based payments could make transactions even quicker at compatible PoS terminals.

For consumers, the biggest change is simple: instead of scanning and entering a PIN for eligible transactions, they can potentially pay by simply tapping their phone.

As more smartphones, banking applications and PoS terminals support NFC-based UPI payments, the feature could become another important part of India's rapidly expanding digital payment landscape.