The National Payments Corporation of India (NPCI) - an organiation responsible for the development and operation of payment systems in the country - may soon come up with a newer method of conducting UPI transactions. In stark contrast to the popular UPI transaction modes available at present, such as 'Scan & Pay' and 'Pay to Contact', the UPI 'Tap & Pay' method will capture the payee's UPI ID or VPA through near field communication (NFC), making the UPI transaction experience easier, safer, and more instant. Users will be able to remit payments by tapping their NFC-enabled devices against the QR code. 

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The NPCI may launch the UPI Tap & Pay system reportedly in the upcoming fintech festival, scheduled to begin on August 28.  

Here are 10 things to know about UPI Tap & Pay: 

  • What is it really? Unlike traditional methods like Scan & Pay or Pay to Contact, UPI Tap & Pay uses NFC technology instead of a camera to complete transactions.
  • This will make UPI payments not only easier but also faster and more secure.
  • The payment method is designed in order to make UPI transactions more seamless and instantaneous.
  • NFC: To use UPI Tap & Pay, the user will need a mobile device with NFC capability.
  • Tap & Pay transactions will be done on NFC Smart QR, NFC QR Soundbox, or UPI Smart Tag with NFC.
  • UPI apps will need to seek customer permission to enable NFC for Tap & Pay transactions.
  • UPI apps must provide a separate call to action button on the homepage for Tap & Pay mode.
  • UPI Tap & Pay mode will be available on mobile devices, be it Android or iOS operating systems.
  • While amounts of up to Rs 500 will be processed through UPI LITE accounts, if enabled by the user, larger transactions will require a UPI PIN.
  • UPI LITE Tap & Pay will be available on both Android and iOS devices.