India has introduced a new tap-and-pay facility for its Unified Payments Interface (UPI), bringing contactless smartphone payments to the country’s massive real-time payment network.
The new UPI Tap & Pay system allows users to unlock an NFC-enabled smartphone and tap it against a compatible point-of-sale terminal to initiate a payment, removing the need to scan a QR code. The system can also operate when the customer’s phone has little or no internet connectivity by relying on the POS terminal’s connection.
The development represents another major expansion of UPI, which processed 24.51 billion transactions worth INR 29.82 trillion, approximately USD 314 billion, in August alone.
The launch also comes shortly before Apple Pay is expected to make its full entry into India. Indian media reports indicate that Apple Pay could launch by October 2026, initially allowing users to add supported Visa and Mastercard credit cards to Apple Wallet and make NFC contactless payments using iPhones and Apple Watches. UPI support is reportedly not expected during the initial rollout.
This would give Indian consumers two different approaches to contactless mobile payments. UPI Tap & Pay operates through India’s UPI infrastructure, while Apple Pay’s initial Indian service is expected to rely on tokenised payment cards and international card networks.
NPCI Chairman Ajay Kumar Choudhary said the new tap-and-pay feature was designed to make payments easier even in areas where mobile connectivity is limited.
The move could accelerate the shift from QR-based payments towards NFC contactless transactions at Indian shops and businesses, particularly as more payment terminals and smartphones support the technology.
