Offline UPI Payments to Use NFC Tap-to-Pay

Key facts

• The National Payments Corporation of India (NPCI) is developing an offline 'tap and pay' feature for the Unified Payments Interface (UPI) using Near Field Communication (NFC) technology.
• Users must first load money into their UPI Lite wallet while online, then tap their NFC-enabled smartphone on a compatible PoS terminal to make offline payments.
• The merchant terminal stores the payment authorization and syncs with the banking network once internet connectivity is restored.
• No UPI PIN is required for offline transactions as funds are deducted from the preloaded UPI Lite balance.
• The transaction limit for the offline tap-and-go scheme is set at ₹2,000.
• This new capability extends beyond the existing UPI Lite X, which only enabled offline transactions between two NFC-enabled smartphones, by allowing payments to any merchant with an NPCI-certified offline PoS terminal.
• NPCI is expected to begin certifying PoS devices from major terminal manufacturers in 2026.