RBI's UPI Tap and Pay lets users pay by tapping phone, no QR code needed
UPI's new Tap and Pay feature uses NFC to let customers pay by tapping their phone on a POS machine instead of scanning a QR code
Images are not validated/verified
Digital payments are growing rapidly in the country, and against this backdrop the Reserve Bank of India (RBI) has introduced a new feature to make UPI payments even easier. The feature is called UPI Tap and Pay. It means customers will no longer need to find and scan a QR code every time they make a payment. Simply tapping the smartphone on a POS machine will complete the transaction.
The feature is based on NFC technology and enables contactless payments. Earlier, users had to locate and scan a QR code; now that is not required. The transaction is completed once the phone is tapped on an NFC-enabled POS machine. However, there is a condition: the customer's smartphone must have NFC technology, and the shopkeeper's POS machine must also support NFC. If either side lacks this technology, the feature cannot be used.
Currently, making a UPI payment involves a three-step process: open the app, scan the QR code and then complete the payment. Tap and Pay will make all of this instant. The customer only needs to take the phone near the POS machine and tap it, after which the transaction goes through immediately. This will allow small-value transactions to be completed quickly.
Another advantage of this feature is reduced dependence on the internet. This could make digital payments easier in areas with weak internet connectivity or in rural areas. However, the same condition applies here too: NFC must be present on both the customer's phone and the merchant's POS machine.
According to the information available, a UPI PIN will not be required for transactions up to Rs 5,000. However, a PIN may be required for transactions above that amount. These rules may change slightly in their final form depending on how the concerned bank or UPI app implements them.
Customers need to be careful with small transactions made without a PIN. Before tapping the phone, they should check the amount shown on the POS machine carefully. Tapping the phone on an unfamiliar or suspicious-looking POS machine should be avoided. And if the phone is lost, the linked UPI and bank account should be secured immediately.
The use of UPI is currently growing rapidly, and the Tap and Pay feature could be a significant step towards making digital transactions even faster and easier. If the feature reaches areas with retail purchases, small transactions and poor internet connectivity in particular, customers could benefit greatly.
