UPI ‘tap and pay’ feature may go live in Jan 2024

An NPCI circular said that UPI members can go live with the UPI ‘Tap and Pay’ functionality by January 31, 2024.

It is vital to note that the timeline mentioned in the circular is not a deadline for digital payment firms. NPCI will continue to follow up with companies that may be unable to introduce the service within the timeframe.

This feature is currently live on the BHIM app along with Paytm where it is open for limited users.

What is the ‘ Tap and Pay ‘ UPI feature?

Phones or devices that have NFC capability, can make the payment, using the ‘Tap & Pay’ button on their UPI app. The transaction will be completed by just tapping the device on the UPI Smart Tag/Smart QR, on the screen.

A user can enable the UPI LITE account and with the tap feature, transactions with a value of less than ₹500 can be processed through UPI LITE. However, transactions of over ₹500 will require a UPI PIN.

Reserve Bank of India (RBI) Governor Shaktikanta Das, announced the launch of the UPI ‘Tap and Pay’ feature among other new digital payment functionalities at the Global Fintech Fest in September this year.

The feature utilizes near-field communication (NFC) technology to capture details about a payee’s UPI ID or a Virtual Payment Address (VPA) without capturing a quick response (QR) code via a camera. Mobiles and devices, which have the NFC capability, can use the service.

Unified Payments Interface (UPI) members can go live with UPI’s ‘Tap & Pay’ functionality by January 31 next year, the National Payments Corporation of India (NPCI) has stated in a circular.

The recent circular from NPCI recommends UPI applications to have a separate call-to-action (CTA) button for the feature on a payment app’s homepage. It will be available to users on Android and iOS operating systems.