UPI Tap and Pay is set to make everyday digital payments faster, with users able to make payments of up to ₹5,000 without entering a UPI PIN under the new facility.
The feature uses NFC technology and is being made available through popular UPI apps.
The National Payments Corporation of India (NPCI) has introduced two new UPI features, MyUPI and Tap-and-Pay, aimed at making digital payments more convenient and personalised.
UPI Tap and Pay Makes ₹5,000 Payments Easier
With the new Tap-and-Pay facility, users can make eligible payments by simply bringing their smartphone close to a compatible payment terminal.
The technology uses Near Field Communication, or NFC, to establish a contactless connection between the phone and the payment terminal.
This means users do not necessarily have to scan a QR code for every payment. Instead, the phone can be tapped on a supported terminal, similar to the way contactless card payments work.
The new facility is particularly useful for quick transactions at merchants where compatible terminals are available.
The ₹5,000 limit applies to the new PIN-free payment facility, while higher-value transactions require additional authentication.
PhonePe, Google Pay and Paytm Users Can Benefit
The new payment option is expected to be available through major UPI platforms, including PhonePe, Google Pay and Paytm, subject to support and rollout by the respective apps.
Users will need a compatible smartphone and a supported NFC-enabled payment setup to use the tap-based facility. Availability can depend on the app, device and merchant terminal.
For consumers who regularly make small-value payments, the feature could reduce the steps involved in completing a transaction.
MyUPI Lets Users Create a Personal UPI Handle
Alongside Tap-and-Pay, NPCI has introduced MyUPI as another new feature.
It allows users to create a more personalised UPI identity instead of relying only on the standard handles associated with their payment app.
For example, users may be able to choose a customised UPI handle that reflects their preferred identity, subject to the rules and availability of the service.
The feature is aimed at giving users greater personalisation while using UPI for digital payments.
It also adds another layer of convenience for people who frequently share their UPI details for receiving money.
What Users Should Know About the New UPI Features
The new features are part of the wider effort to make UPI payments quicker and easier without changing the basic convenience of digital banking.
Tap-and-Pay focuses on faster contactless transactions, while MyUPI focuses on giving users a more personalised UPI identity.
Both features are designed around making everyday payments simpler.
Users should also remember that PIN-free authentication does not mean every UPI transaction can be completed without security checks.
Transaction limits, device compatibility, app support and other authentication requirements will continue to apply.
With UPI already widely used across India, features such as contactless payments and personalised handles could make digital transactions more convenient for everyday users.
