To make Unified Payments Interface (UPI) transactions easier and faster for customers, the Reserve Bank of India has introduced the ‘Tap and Pay’ feature at the Global Fintech Fest 2026 in Mumbai. RBI governor Sanjay Malhotra announced the feature, which enables users to make UPI payments by tapping an NFC-enabled smartphone at a compatible point-of-sale (POS) terminal.
UPI Tap and Pay
NFC stands for Near Field Communication technology, which enables devices kept in proximity to exchange information wirelessly, reducing the need to manually fill in the information.
The users would not need to scan the QR code as a result of NFC technology. Moreover, these transactions would not require users to enter the UPI PIN for smaller transactions, thus making the everyday experience more convenient. For payments up to Rs 5,000, no UPI PIN is needed. However, for transactions over that amount, users need to enter the UPI PIN.
Faster payments without QR codes
Also, this feature does not require the mobile’s data connection, and the process can be entirely carried out using the POS’s internet connection.
The facility can work on multiple types of UPI-linked accounts and RuPay credit cards on UPI.
UPI transactions have so far required users to open the UPI app, scan the QR code and enter the UPI PIN, and in many cases, often wait for good internet connectivity for the transaction to be completed seamlessly and on time. This takes time and can become stressful if the internet does not work and there is no cash in the pockets.
The ‘Tap and Pay’ facility provides convenience and saves time. It is similar to contactless card transactions. The only limitation is that the smartphone and the POS terminal must support NFC.
MyUPI
Another feature introduced by the RBI is MyUPI, an AI-powered platform developed by the National Payments Corporation of India (NPCI) on its Small Language Model, Finance Model for India (FiMI). It is also called UPI Help 2.0.
MyUPI gives users a single view of all their UPI transactions and AutoPay mandates across banks and UPI applications. It aims to provide security and efficiency while carrying out UPI-enabled transactions.
Safety Switch and UPI Number Delink
Another feature of MyUPI is the Safety Switch, which allows users to request that UPI debit transactions be declined in case they suspect some suspicious activity. Meanwhile, the UPI Number Delink option will let users receive UPI transactions without using their mobile numbers.
Another provision of MyUPI is that it provides payee’s context-based information, allowing users to access information on the beneficiaries before the transaction is authorised. It is helpful in avoiding fraud and scams when making transactions with unknown beneficiaries.
Automated chargebacks and Transaction Replay
More features enabled through MyUPI are Automated Chargeback Processing for eligible transactions, helping to reduce the complaint resolution time; Transaction Replay, which helps to recall and replay past transactions using any UPI app.
Together, ‘Tap and Pay’ and MyUPI work to make the entire process of UPI transactions faster and more convenient for users, from getting information on the beneficiary before the transaction and making quick payments, to declining transactions that can potentially compromise your account.
