In a recent circular, the National Payments Corporation of India (NPCI) has set a deadline for Unified Payments Interface (UPI) members to go live with the UPI ‘Tap and Pay’ functionality by January 31, 2024. This move aims to introduce contactless transactions, revolutionizing digital payments for users across Android and iOS operating systems.
The UPI ‘Tap and Pay’ feature utilizes near-field communication (NFC) technology, allowing users with NFC-enabled phones or devices to make payments seamlessly. By tapping the device on the UPI Smart Tag or Smart QR displayed on the screen, transactions can be completed effortlessly. Currently, this feature is already operational on the BHIM app and Paytm, catering to limited users.
Users can enable the UPI LITE account to benefit from the ‘Tap and Pay’ feature for transactions with a value of less than ₹500. For transactions exceeding ₹500, additional security is ensured by requiring a UPI PIN. This initiative aligns with the Reserve Bank of India (RBI) Governor Shaktikanta Das’s announcement at the Global Fintech Fest in September, unveiling the upcoming launch of the ‘Tap and Pay’ feature and other digital payment functionalities.
It is essential to note that the mentioned timeline in the circular is not a strict deadline for digital payment firms. NPCI intends to collaborate with companies to ensure the successful introduction of the ‘Tap and Pay’ service, even for those facing challenges meeting the specified timeframe.
As the digital payments landscape evolves, the UPI ‘Tap and Pay’ feature signifies a step toward greater convenience, security, and efficiency in transactions, further advancing the adoption of contactless payment methods.
