UPI Tap-and-Pay is a new contactless payment feature that allows users to make UPI payments by tapping their NFC-enabled smartphone on a compatible payment terminal. The feature is designed to make everyday payments faster by reducing the need to open a UPI app first.
What is UPI Tap-and-Pay?
The Unified Payments Interface, or UPI, is adding another way for users to pay at merchant terminals. Instead of opening a UPI application, selecting a payment option and scanning a QR code, users can tap a compatible smartphone against a supported point-of-sale terminal.
The feature uses Near Field Communication, commonly called NFC. NFC is the short-range wireless technology already used in many contactless cards and smartphones.
The National Payments Corporation of India, or NPCI, announced the new UPI tap-and-pay functionality at the Global Fintech Fest in Mumbai. The development comes as India continues to expand contactless and digital payment options.
Recent reporting also noted that the feature is designed to work even in situations where internet connectivity is low or unavailable at the point of payment. However, the exact availability and user experience can depend on the participating UPI app, bank, device and merchant terminal.
How does UPI Tap-and-Pay work?
The basic process is similar to using a contactless bank card.
A merchant needs a compatible payment terminal that supports the tap functionality. The customer needs a smartphone with NFC capability and a supported UPI setup.
When making a payment, the user brings the phone close to the designated contactless area on the payment terminal. The devices communicate over NFC and initiate the payment process.
The important difference is that the customer does not necessarily have to open the UPI application before making the payment.
This can be particularly useful for quick transactions at places such as grocery stores, cafés, pharmacies, public transport counters and other merchant locations where customers may already be accustomed to tapping cards or phones.
NPCI’s updated UPI guidelines also include merchant QR designs that display a contactless symbol and the words Tap to Pay, indicating that participating merchants can offer both scanning and tapping options.
What do you need to use UPI Tap-and-Pay?
Not every phone or payment terminal will automatically support the feature.
The first requirement is an NFC-enabled smartphone. NFC hardware is found in many newer smartphones, although its availability differs by model and price segment.
The second requirement is support from the relevant UPI ecosystem. The bank, UPI application and payment infrastructure involved in the transaction must support the feature.
The merchant’s payment terminal also needs to be compatible with contactless payments.
This means a user may have an NFC-enabled phone but still be unable to make a tap payment at a particular shop if the merchant terminal does not support the functionality.
Users should therefore check their phone’s NFC settings and the availability of the feature in their UPI application rather than assuming that every UPI payment terminal will accept tap payments immediately.
Does UPI Tap-and-Pay mean UPI PIN is no longer required?
No. Users should not assume that contactless payment means UPI security requirements have disappeared.
UPI transactions continue to operate within the authentication and security framework established by participating banks and NPCI. The exact authentication experience can depend on the transaction, amount, device and implementation.
NPCI has separately introduced on-device biometric authentication as an additional option for certain UPI transactions. This allows eligible users to authenticate through supported device security features such as fingerprint or face authentication instead of manually entering a UPI PIN.
Therefore, users should follow the authentication prompt shown by their supported payment application or device.
Most importantly, a UPI PIN should never be shared with another person. NPCI specifically advises users not to disclose their UPI PIN, and legitimate bank or UPI support personnel should not ask for it.
What happens if your internet connection is weak?
One of the notable aspects of the new feature is its ability to support contactless payments in situations where internet connectivity is limited or unavailable.
This could be useful in crowded markets, busy railway stations, large events or locations where mobile data connectivity is unreliable.
However, users should not interpret this as meaning that every UPI transaction will always work completely offline. The availability of a payment depends on the underlying implementation, participating bank, application and payment infrastructure.
The new feature is better understood as an attempt to reduce dependence on opening an app and maintaining a conventional online payment flow at the moment of tapping.
UPI Tap-and-Pay vs QR code payments
QR-based UPI payments remain one of the most widely recognised ways to pay in India.
With a QR payment, the customer normally opens a UPI application, scans the merchant’s QR code, checks the payment details and authorises the transaction.
Tap-and-pay removes the scanning step. The user simply brings the NFC-enabled smartphone close to the compatible terminal.
For small everyday purchases, this can make the payment process quicker. It also creates another option for people who find scanning QR codes inconvenient in crowded or low-connectivity situations.
The two systems are not necessarily competitors. NPCI’s merchant guidelines explicitly provide for QR displays carrying the instruction Scan or Tap to Pay with any UPI app, indicating that merchants can support both methods.
Why the new feature matters for Indian consumers
India has already built one of the world’s largest digital payment ecosystems around UPI. NPCI reported that UPI processed 24.51 billion transactions worth about Rs 29.82 trillion in August 2026, according to Reuters.
The introduction of tap-and-pay adds another layer to that ecosystem by bringing a contactless experience familiar from cards and mobile wallets into UPI payments.
For consumers in Tier-2 and Tier-3 cities, the practical impact will depend heavily on merchant adoption. If local shops, supermarkets, restaurants and other businesses upgrade compatible terminals, tapping could become another routine payment method alongside QR scanning.
For merchants, supporting both QR and tap payments could provide customers with greater flexibility without requiring them to abandon the existing UPI infrastructure.
What users should check before trying UPI Tap-and-Pay
Before attempting a contactless UPI payment, check whether your smartphone has NFC hardware and whether NFC is enabled.
You should also make sure your UPI application and bank account are supported for the feature. At the merchant counter, look for the contactless symbol or Tap to Pay indication on a compatible terminal.
Always verify the merchant name and payment amount before confirming a transaction. A faster payment should not mean skipping basic security checks.
Users should also keep their phone’s screen lock and device security enabled. If a phone is lost, its security settings become an important layer of protection against unauthorised access.
Key Takeaways
- UPI Tap-and-Pay allows contactless payments through NFC-enabled smartphones at compatible merchant terminals.
- Users do not necessarily need to open their UPI app before initiating a tap payment.
- The feature’s availability depends on the smartphone, UPI application, bank and merchant payment terminal.
- UPI security rules still apply, and users should never share their UPI PIN or approve payments without checking the transaction details.
Frequently Asked Questions
What is UPI Tap-and-Pay?
UPI Tap-and-Pay is a contactless payment facility that uses NFC technology to allow users to make UPI payments by tapping a compatible smartphone on a supported merchant payment terminal.
Can I use UPI Tap-and-Pay without an NFC phone?
No. NFC is the technology used for the contactless communication between the smartphone and compatible payment terminal, so an NFC-capable device is required for this type of payment.
Do all shops accept UPI Tap-and-Pay?
No. The merchant’s payment terminal must support the relevant contactless functionality. QR-based UPI payments can continue to be used where tap-and-pay is unavailable.
Is UPI Tap-and-Pay safe?
The feature operates within the UPI payment ecosystem and its security framework. Users should still verify the payment amount and merchant details and must never share their UPI PIN, OTP or other authentication credentials with anyone.
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