Making a UPI payment at a shop could soon become much quicker and more convenient. Users may no longer need to open a payment app, scan a QR code or depend on an active mobile internet connection every time they want to pay at a supported merchant terminal.

The UPI Tap and Pay facility allows customers with compatible NFC-enabled smartphones to make payments by simply unlocking their phone and tapping it on a supported Point-of-Sale (POS) terminal.

The feature was announced by RBI Governor Sanjay Malhotra on September 10, 2026, as part of initiatives aimed at making digital payments easier while improving customer support and security.

However, Tap and Pay should not be misunderstood as a completely offline version of UPI. While the customer's phone may not require its own mobile data connection during an eligible transaction, the merchant's compatible POS terminal needs connectivity to process the payment.

What Is UPI Tap and Pay?

UPI Tap and Pay brings a contactless-style payment experience to UPI.

Until now, the most familiar way to make a UPI payment at a physical store has been to open a UPI app, scan the merchant's QR code, check the payment details and complete the required authentication.

With Tap and Pay, eligible users can instead unlock an NFC-enabled smartphone and tap it against a compatible POS terminal.

The concept is similar to contactless card payments, where customers bring their card or supported device close to a payment terminal to initiate a transaction.

How Will UPI Tap and Pay Work?

To use the feature, both the smartphone and merchant terminal need to support the required technology.

The customer first unlocks the NFC-enabled smartphone and taps it against the compatible POS machine. The transaction can then be processed using the terminal's internet connection.

This means a customer may be able to make the payment even if mobile data is unavailable on the phone at that moment.

The facility can support different UPI-linked accounts, including eligible RuPay credit cards linked to UPI.

Actual availability will depend on supported smartphones, banks, accounts and merchant payment terminals.

Can You Really Pay Without Internet?

Yes, but there is an important condition.

The phrase “without internet” refers primarily to the customer's smartphone not needing its own active mobile internet connection for the supported Tap and Pay transaction.

The overall payment system is not completely offline.

The compatible POS terminal still needs the required connectivity to communicate with the payment infrastructure and process the transaction.

Therefore, users should not assume that UPI will now work without internet in every situation or at every shop.

No Need to Scan a QR Code

One of the biggest conveniences of the feature is that users may not need to scan a QR code for an eligible Tap and Pay transaction.

At busy retail counters, repeatedly opening an app, finding the scanner and positioning the camera correctly over a QR code can add extra steps.

NFC-based payments simplify this interaction. The customer can bring the unlocked smartphone close to the supported terminal and initiate the payment.

This could make UPI more convenient at supermarkets, retail stores and other physical merchant locations equipped with compatible POS machines.

Up to ₹5,000 Without UPI PIN

Small-value transactions could become even faster.

Under the facility described, eligible payments of up to ₹5,000 can be completed without entering a UPI PIN.

For transactions exceeding ₹5,000, UPI PIN authentication would be required through the sup