The National Payments Corporation of India (NPCI) is preparing to provide the UPI Tap and Pay service by the end of January 2024 to improve consumer convenience. Shaktikanta Das, the governor of the Reserve Bank of India, made the statement at the September 2023 Global Fintech Fest.
What Is UPI Tap And Pay?
By using smartphones’ Near Field Communication (NFC) capabilities, the UPI Tap and Pay functionality enables customers to make payments while on the go without scanning a QR code. Near-field communication, or NFC, is a perfect technology for UPI transactions since it guarantees a secure connection up to 4 cm away.
Transaction Limits
Users can start transactions with UPI Tap and Pay for up to Rs 500 at a time, with a daily maximum of Rs 4,000. Users of UPI Lite do not need to input a UPI PIN when making transactions under Rs 500 since they may just touch their phones against a UPI Smart Tag or UPI Smart QR. On the other hand, consumers will need to enter their PIN after touching their smartphone for transactions that surpass this cap.
How To Use UPI Tap And Pay?
Here’s how you’ll do it step-by-step:
- Launch the UPI app.
- Verify if UPI Tap and Pay are compatible.
- Press the “Tap and Pay” button.
- Enter the amount of the transaction.
- Press and hold your smartphone over the UPI Smart NFC Tag or QR code.
- Verify the transaction’s success.
Currently, Paytm and the NPCI-run BHIM app support UPI Tap and Pay. Although this capability is now available on Paytm for a few customers, other UPI applications are free to implement it whenever they see fit. To track the rollout’s development, the NPCI and UPI app operators will continue to collaborate closely.
