In an exciting development for digital payment enthusiasts, the National Payments Corporation of India (NPCI) is all set to launch the UPI Tap and Pay feature by the end of January 2024. This innovative feature, which was announced by RBI Governor Shaktikanta Das during the Global Fintech Fest in September 2023, is poised to enhance the convenience of making payments on the go.
How Does UPI Tap and Pay Work?
The core technology behind UPI Tap and Pay is Near Field Communication (NFC), which enables users to execute payments without the need to scan a QR code. NFC technology facilitates a secure connection within a short distance of 4 cm, making it a highly suitable and secure method for conducting UPI transactions.
Transaction Limits and Security
UPI Tap and Pay introduces a transaction limit of Rs 500 per transaction, with a daily cap of Rs 4,000. For transactions under Rs 500, users can simply tap their phone against a UPI Smart Tag or QR and proceed without entering a UPI PIN. However, for amounts exceeding this limit, the user is required to input their UPI PIN post-tapping their device, ensuring an added layer of security.
How to Use It
Using UPI Tap and Pay is straightforward:
- Open a compatible UPI app.
- Look for the Tap and Pay feature.
- Enter the transaction amount.
- Tap your mobile phone on the UPI Smart NFC QR or Tag.
- Confirm the transaction.
Availability
As of the latest updates, the feature is available on the NPCI’s BHIM app and Paytm, though it’s currently live for a limited number of Paytm users. Other UPI apps are expected to introduce this feature according to their discretion, with NPCI closely monitoring the rollout.
Impact and Future Prospects
The introduction of UPI Tap and Pay marks a significant step forward in the digital payments landscape. It not only promises to simplify transactions but also aims to enhance security and speed, making digital payments more accessible and convenient for a broader user base.
As we await the full-scale deployment of this feature, it’s clear that UPI Tap and Pay is set to become a game-changer in the way we conduct digital transactions.