National Payments Corporation of India (NPCI) has launched UPI Tap & Pay, enabling faster in-store payments via smartphones and POS terminals.
UPI Tap & Pay is built for use with NFC-enabled smartphones and NFC-enabled POS terminals. To initiate a payment, a user unlocks their phone and taps it against the POS device, without needing to open a separate application screen for each transaction step. The feature does not require an active mobile internet connection since the transaction is processed using the POS terminal's own connectivity.
The capability supports payments drawn from multiple UPI-linked account types, including RuPay Credit Card on UPI. Transactions of up to USD 52.3 do not require a UPI PIN, while payments above that threshold require the user to enter their PIN directly on the POS terminal.
This tiered authentication approach mirrors contactless card payment structures already in use across other markets, positioning UPI Tap & Pay as an extension of India's A2A payment infrastructure into the contactless POS environment dominated by card networks.
MyUPI adds AI-based support tools
Alongside Tap & Pay, NPCI also introduced MyUPI, described as an AI-powered platform designed on its small language model, FiMI. The platform expands the existing UPI Help service, focusing on user support across UPI applications and banks.
In addition, MyUPI offers a view of the user's UPI transactions and AutoPay mandates spanning multiple banks and UPI applications. It also introduces a Safety Switch, which lets users request that UPI debit transactions be declined if they suspect their account has been compromised. Furthermore, the UPI Number Delink feature allows users to remove their mobile number from receiving UPI payments.
Additional functions include payee context-based information, automated real-time chargeback processing for eligible transactions, and a transaction replay tool that allows users to repeat past payments through any UPI app. The platform will offer round-the-clock multilingual support alongside self-service tools across the UPI infrastructure.
UPI’s Tap&Pay growth base
According to the India Digital Payment Market Size & Forecast 2026-2034 report, UPI already dominates India's digital payments landscape, processing over 640 million daily transactions and accounting for 85% of digital payment volume. Before its Tap & Pay option, NPCI has been actively expanding UPI's capabilities, including biometric authentication, IoT-enabled micro-transactions via connected devices, and agentic commerce pilots with OpenAI. RuPay credit cards linked to UPI now represent 16% of India's credit card spending.
