India has introduced a new tap-and-pay feature for UPI, allowing users to make payments by simply tapping their smartphones on compatible payment terminals instead of opening a UPI app for every transaction.
The new feature uses NFC technology and was announced by the National Payments Corporation of India (NPCI) at the Global Fintech Fest in Mumbai. It comes as Apple prepares for a wider launch of Apple Pay in India, reportedly expected in October.
How UPI tap-and-pay works
The new system is designed to make contactless UPI payments quicker. Instead of scanning a QR code or manually opening a payment application, users can tap an NFC-enabled smartphone against a compatible point-of-sale terminal.
The feature is particularly aimed at making small, everyday payments more convenient. NPCI chairman Ajay Kumar Choudhary said the technology is also designed to work in areas with limited or no network connectivity, adding another potential advantage for users.
India's UPI network continues to grow
The launch comes as India's digital payments system continues to handle enormous transaction volumes.
UPI processed 24.51 billion transactions worth ₹29.82 trillion in August, according to the latest figures. That works out to roughly ₹29.82 lakh crore in transactions during a single month.
The scale of UPI has made it one of the most important digital payment systems in India and a major part of the country's shift towards cashless transactions.
Apple Pay is also coming to India
The timing of the new feature is particularly interesting because Apple Pay is expected to receive a full launch in India.
A beta version of Apple Pay has reportedly already been available in the country, with a wider rollout expected in October. The arrival of Apple's payment service could give Indian iPhone users another way to make contactless payments alongside the growing UPI ecosystem.
For consumers, this could mean more options for tap-based payments, particularly as NFC becomes increasingly common in smartphones and payment terminals.
What this means for UPI users
The biggest change is convenience. UPI has traditionally been associated with QR-code payments, but tap-and-pay moves the system closer to the contactless payment experience already familiar to users of cards and mobile wallets.
If the feature becomes widely supported across banks, apps and payment terminals, tapping a phone could eventually become as routine as scanning a QR code.
The move also shows how India's digital payments infrastructure is continuing to evolve beyond simply replacing cash with QR codes.
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