UPI Tap and Pay

UPI Tap and Pay mind map
Recent News
NPCI to launch by end of January 2024
Announced at Global Fintech Fest September 2023
When
Launch Date
End of January 2024
Why
Enhance user convenience
What
Uses NFC
Near Field Communication
Secure within 4 cm distance
Transaction limits
Up to Rs 500 per transaction
Daily cap of Rs 4,000
Available on
BHIM app
Paytm (limited users)
Other UPI apps can introduce
Where
India
Who
National Payments Corporation of India (NPCI)
How
Tap phone on receiver's device
Fetch UPI ID/VPA through NFC
Internet required for transaction
Step-by-step guide
Open UPI App
Select Tap & Pay icon
Enter amount
Tap on receiver’s device
Transaction successful
Significance
Simplifies payments
Quick and easy
Challenges
Lack of trust
Prone to cyber attacks
Illiteracy
Internet penetration
Way Forward
Addressing challenges
Improving accessibility
Increasing trustworthiness
Possible expansion to more Asian countries

UPI Tap and Pay is a forthcoming feature introduced by the National Payments Corporation of India (NPCI), set to launch by the end of January 2024. This innovative payment method utilizes NFC (Near Field Communication) technology, allowing users to make transactions by tapping their smartphones against a receiver’s device. It is designed for transactions up to Rs 500, with a daily cap of Rs 4,000. Currently, this feature is available on BHIM and Paytm (for limited users), with other UPI apps also having the option to introduce it. While it aims to enhance user convenience and quicken the payment process, challenges like lack of trust, vulnerability to cyber-attacks, illiteracy, and limited internet penetration remain. Future prospects include more widespread adoption and possible expansion to other Asian countries.