New UPI Tap to Pay Feature Will Enable Offline Payments Without Internet
NPCI is preparing a new UPI feature that will allow offline payments through NFC technology without internet or PIN making small transactions faster and more convenient for users.
Digital payments in India could soon become even more convenient with a new offline UPI feature under development. The National Payments Corporation of India is working on a Tap to Pay system that will allow users to make payments even without an active internet connection.
The upcoming feature is expected to be especially useful in places where mobile connectivity is weak or unavailable. Travelers on flights, people in remote villages and users in underground locations could continue making digital payments without depending on internet access.
The new system will rely on Near Field Communication technology, commonly known as NFC. Instead of scanning a QR code or entering a UPI ID, users will simply tap their NFC enabled smartphone on a compatible Point of Sale machine to complete the payment.
Unlike regular UPI transactions, the offline payment process will not require an internet connection at the time of purchase. It is also designed to eliminate the need for entering a UPI PIN, making transactions quicker and more seamless for small value purchases.
To use the feature, customers must first load money into their UPI Lite account while connected to the internet. Once the balance is available, payments can be made offline by tapping the smartphone on the merchant’s POS terminal. When internet connectivity is restored, the transaction details will automatically be synchronized with the banking system.
The service will only work on smartphones that support NFC technology, and merchants must have compatible POS machines capable of accepting Tap to Pay transactions. Several technology companies are also assisting NPCI in developing and implementing the new payment system.
Initially, offline payments through this feature are expected to be limited to transactions of up to Rs 2000. The limit is intended to ensure quick processing while reducing risks associated with offline transactions.
UPI has already transformed digital banking across India by making money transfers simple and instant. With the introduction of offline Tap to Pay technology, users may soon be able to enjoy the same convenience even in areas where internet connectivity is unavailable, further expanding the reach of digital payments across the country.
