New Delhi: UPI payments at physical stores are set to become more convenient, even when users do not have an active mobile data connection. The Reserve Bank of India (RBI) on Thursday unveiled UPI Tap and Pay, a new contactless payment facility for NFC-enabled smartphones, along with MyUPI, an AI-powered platform aimed at simplifying customer support and giving users greater control over their UPI transactions.
RBI Governor Sanjay Malhotra announced the initiatives on September 10 as part of efforts to make India’s rapidly expanding digital payments ecosystem more accessible, secure and user-friendly.
Tap your phone and pay with UPI.
UPI Tap & Pay brings contactless payment experience to UPI. Just tap your NFC-enabled phone at a compatible terminal, with PIN-less payments up to ₹5,000.#UPITapAndPay #UPI #NFCPayments #DigitalPayments pic.twitter.com/L9JKkos3hn
— UPI (@UPI_NPCI) September 10, 2026
Tap Your Phone, Pay at the Counter
UPI Tap and Pay will allow customers with NFC-enabled smartphones to make payments by simply unlocking their phones and tapping them against compatible NFC-enabled point-of-sale (POS) terminals.
The experience is designed to work much like contactless card payments. However, the facility should not be mistaken for a completely offline version of UPI.
The user’s phone will not need an active mobile internet connection during the payment. Instead, the transaction can use the internet connectivity available through the merchant’s POS terminal. This could prove particularly useful in locations where mobile data is weak, unavailable or temporarily disrupted.
The facility is also expected to support multiple UPI-linked payment sources, including RuPay credit cards linked to UPI.
The Reserve Bank of India (RBI) Governor, Shri Sanjay Malhotra, today unveiled new UPI capabilities at GFF 2026, bringing greater speed, convenience and intelligence to digital payments.
UPI ‘Tap & Pay’ – Enables faster UPI payments by simply unlocking an NFC-enabled… pic.twitter.com/JVlRU28AIu
— NPCI (@NPCI_NPCI) September 10, 2026
No PIN for Payments Up to ₹5,000
The new system is aimed at making small-value payments faster. Transactions of up to ₹5,000 can be completed without entering a UPI PIN, while payments above that threshold will require PIN authentication on the POS terminal.
The move comes as NPCI continues to introduce alternative authentication methods. Its existing UPI framework already supports optional on-device biometric authentication, including fingerprint and facial recognition, for eligible transactions up to ₹5,000.
MyUPI Brings AI Into UPI Customer Support
Alongside Tap and Pay, the RBI announced MyUPI, an AI-powered platform developed by the National Payments Corporation of India (NPCI).
Built on NPCI’s FiMI (Finance Model for India) small language model, MyUPI is designed to bring UPI-related information, transaction support and AutoPay mandate management into a unified interface.
NPCI had earlier developed FiMI specifically for India’s payments ecosystem, with capabilities covering areas such as transaction disputes, mandate management and multilingual customer support.
MyUPI is intended to go beyond conventional customer care by giving users greater visibility and control over their UPI accounts across participating banks and applications.
‘Safety Switch’ to Add Another Layer of Protection
One of the key features is a Safety Switch, through which users can request that UPI debit transactions be blocked if they suspect their account has been compromised.
Another proposed facility, UPI Number Delink, will allow users to stop receiving payments through their mobile number.
MyUPI will also provide additional information about beneficiaries before a transaction is completed, while eligible transactions could receive automated chargeback support.
A Transaction Replay feature is expected to allow users to recall and repeat a previous transaction through any UPI application, potentially making recurring or repeated payments more convenient.
The platform is also expected to provide 24×7 multilingual assistance and self-service options, strengthening the customer-support layer around UPI.
UPI Continues to Expand Beyond QR Payments
The latest initiatives signal a broader evolution of UPI—from a system primarily associated with QR-code payments and bank transfers to a more comprehensive digital payments platform incorporating contactless payments, alternative authentication, AI-powered support and enhanced security controls.
NPCI’s latest data shows the scale of this transformation. UPI processed 24,508.96 million transactions in August 2026, worth approximately ₹29.82 lakh crore, with 752 banks live on the platform.
NPCI has also been expanding UPI’s accessibility through voice-based payments, biometric authentication and other alternative interfaces. Its Hello! UPI initiative, for instance, enables conversational payments through regional languages and telecom calls.
With Tap and Pay targeting the checkout experience and MyUPI focusing on customer support, security and account management, the latest initiatives point to the next phase of UPI’s evolution—making digital payments not just faster, but easier to access, authenticate and control.
