Making digital payments more convenient, the Unified Payments Interface (UPI) ecosystem has introduced a new ‘Tap & Pay’ facility that allows users to complete transactions by simply tapping their NFC-enabled smartphones on compatible Point of Sale (POS) terminals. The feature was unveiled at the Global Fintech Fest in Mumbai and is aimed at reducing the dependence on QR codes and manual entry of UPI IDs.
Under the new facility, users with NFC-enabled smartphones can make a payment by unlocking their device and bringing it close to an NFC-compatible POS terminal. The transaction will be processed for the amount entered on the terminal. This means customers will no longer have to open their phone camera to scan a merchant’s QR code or manually enter a UPI ID for every eligible transaction.
The facility has been introduced by the National Payments Corporation of India (NPCI), which operates the UPI infrastructure. Since it is part of the wider UPI ecosystem, the feature can be made available through participating UPI applications, including platforms such as PhonePe, Google Pay and BHIM, subject to their implementation and support for the facility. The NFC-based mechanism is designed to simplify payments by reducing the number of steps required to complete a transaction.
NPCI has also highlighted the potential of the technology in areas with limited connectivity. Tap & Pay is designed to support transactions in low- or no-connectivity environments where the required NFC and payment infrastructure is available on both the smartphone and the POS terminal. The feature could therefore be useful in situations where conventional QR-based payments may be less convenient.
The Global Fintech Fest also featured the announcement of a pilot project for ‘Demat 2.0’ aimed at the tokenisation of corporate bonds. Under the initiative, ownership of traditional corporate bonds would be represented through blockchain-based digital tokens. The project is intended to make the holding, transfer and management of corporate bonds more technology-driven rather than create a new investment product.
The Demat 2.0 initiative was announced by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kant Pandey during the fintech event, marking another step towards greater use of digital infrastructure in India’s financial ecosystem.