UPI Offline Payments Soon? India May Introduce NFC-Based Payments Without Internet

India could soon introduce an offline UPI payment feature that would allow users to make digital payments even without an active internet connection, according to a Business Standard report citing three people familiar with the matter. The proposed UPI feature is aimed at making digital payments more reliable in areas where mobile network coverage is weak or unavailable.

UPI Payments May Work Without Internet on Phones and PoS Terminals

According to the report, neither the customer's smartphone nor the merchant's point-of-sale (PoS) terminal would require an internet connection for these UPI transactions to be completed. The National Payments Corporation of India (NPCI) is expected to begin certifying compatible PoS terminals for offline UPI payments later this year.

NFC Technology to Power Offline UPI Payments

The report states that the upcoming offline UPI payment feature will be powered by NFC (Near Field Communication) technology. Once the feature is rolled out, users will reportedly be able to make payments by simply tapping their NFC-enabled smartphone on a compatible PoS terminal. Initially, each offline UPI transaction is expected to be limited to Rs 2,000.