Tap and pay: Now available on UPI too!

New Delhi: The Reserve Bank of India (RBI) has extended the tap-and-pay facility, commonly available on credit cards, to UPI payments, allowing users to make payments of up to Rs 5,000 without an internet connection or UPI PIN.

The facility will work on smartphones that support wireless communication with nearby devices. It will also be available on point-of-sale (POS) machines used at shops.

The feature was introduced on a pilot basis in 2023, allowing selected customers to make tap-and-pay transactions of up to Rs 500. It has now been expanded, with no internet connection or UPI PIN required for payments up to Rs 5,000.

However, UPI PIN authentication will remain mandatory for POS payments above Rs 5,000.

The RBI has also introduced 'MyUPI', an AI-based platform designed to help users resolve issues faced while making UPI payments.