UPI Tap and Pay: UPI payments are becoming even more convenient for users. The Reserve Bank of India (RBI) has announced a new UPI Tap and Pay facility that allows customers to make payments at compatible point-of-sale (POS) terminals simply by tapping an NFC-enabled smartphone.
The feature was announced by RBI Governor Sanjay Malhotra on September 10, 2026, at the Global Fintech Fest 2026. It is designed to make payments at physical stores faster, particularly when a user’s smartphone does not have an active mobile internet connection.
However, there is an important point to understand: the user’s phone does not need mobile internet, but the POS terminal needs connectivity to process the transaction.
How Does UPI Tap and Pay Work?
UPI Tap and Pay uses Near Field Communication (NFC) technology, similar to the contactless payment experience offered by cards.
To make a payment, users with a compatible NFC-enabled smartphone can unlock their device and tap it against an NFC-enabled POS machine. The payment can then be processed through the terminal’s internet connection.
This means customers can complete an eligible UPI payment even when their phone has no mobile data connection at the time of purchase.
The feature supports multiple UPI-linked payment accounts, including RuPay credit cards linked to UPI.
UPI Tap and Pay: When Is a PIN Required?
The new facility also aims to make small-value payments quicker.
According to the reported NPCI details, users can make UPI payments of up to ₹5,000 without entering a UPI PIN. For transactions above ₹5,000, the customer will need to authenticate the payment using the UPI PIN on the POS terminal.
This could make everyday payments at physical stores more convenient, particularly for customers who do not have reliable mobile connectivity.
MyUPI: AI-Powered Support for UPI Users
Alongside Tap and Pay, the RBI also announced MyUPI, an AI-powered customer-support platform developed by the National Payments Corporation of India (NPCI).
MyUPI is built using NPCI’s Finance Model for India (FiMI) small language model. The platform is designed to bring important UPI information, support and user-control features into a more unified experience.
What Can MyUPI Do?
MyUPI is designed to provide users with a single view of their UPI transactions and AutoPay mandates across different banks and UPI applications.
The platform also introduces several tools intended to give customers greater control over their payments.
These include:
- Safety Switch: Allows users to request that UPI debit transactions be declined if they suspect their account has been compromised.
- UPI Number Delink: Gives users an option to delink their mobile number from receiving UPI payments.
- Payee Information: Provides additional context about a beneficiary before a payment is made.
- Automated Chargeback Processing: Helps create eligible chargeback requests more efficiently.
- Transaction Replay: Allows users to recall and repeat previous transactions.
MyUPI is therefore intended to go beyond traditional customer support by combining assistance, security controls and self-service options in one platform.
24×7 Multilingual UPI Support
The new MyUPI system is designed to provide round-the-clock support and self-service capabilities in multiple languages.
This approach could make it easier for users to resolve common payment-related issues without having to depend entirely on individual banks or separate UPI applications.
The broader objective is to make UPI not only faster but also easier to manage when customers face issues with transactions, mandates or payment security.
UPI Is Moving Towards Easier Authentication
The latest features are part of a broader push to simplify UPI authentication and improve the overall payment experience.
NPCI had introduced biometric authentication for UPI at GFF 2025, allowing compatible users to authenticate transactions through device-based biometric methods such as fingerprints or facial recognition.
According to NPCI, biometric-authenticated UPI transactions had crossed 6.29 billion as of August 31, 2026, highlighting the growing use of alternative authentication methods.
What the New UPI Features Mean for Users
The introduction of Tap and Pay and MyUPI represents a shift in India’s digital-payment ecosystem. The focus is no longer limited to simply enabling transactions; the emphasis is increasingly on making payments faster, easier, safer and easier to control.
With Tap and Pay, customers can use an NFC-enabled smartphone at compatible POS machines without requiring mobile internet on the phone. Meanwhile, MyUPI aims to provide a centralised support and control layer for transactions, AutoPay mandates and security-related actions.
As UPI continues to evolve, these features could make everyday digital payments more convenient while giving users greater control over how their accounts and transactions are managed.