New Delhi: In a move aimed at enhancing user convenience, the National Payments Corporation of India (NPCI) is gearing up to launch the UPI Tap and Pay facility by the end of January 2024. The announcement was made by RBI Governor Shaktikanta Das during the Global Fintech Fest in September 2023.
What Is UPI Tap And Pay?
The UPI Tap and Pay feature leverages the Near Field Communication (NFC) capability in smartphones, allowing users to make on-the-go payments without the need to scan a QR code. (Also Read: Ratan Tata’s 86th Birthday: Check Out 5 Interesting Facts About Industrialist)
NFC, which stands for near-field communication, ensures a secure connection within a 4 cm distance, making it an ideal technology for UPI transactions. (Also Read: How Much Monthly Interest Will You Earn For Rs 1 Lakh FD Across Different Tenors? Check Calculator)
Transaction Limits
With UPI Tap and Pay, users can initiate transactions of up to Rs 500 at a time, with a daily cap set at Rs 4,000. For purchases under Rs 500, users of UPI Lite can tap their phones against a UPI Smart Tag or UPI Smart QR without entering a UPI PIN. However, for transactions exceeding this limit, users will be required to input their PIN after tapping their device.
How To Use UPI Tap And Pay?
Here’s a step-by-step guide to do it:
– Open your UPI app.
– Check for UPI Tap and Pay compatibility.
– Click on the Tap and Pay icon.
– Enter the transaction amount.
– Tap your mobile phone on the UPI Smart NFC QR or UPI Smart NFC Tag.
– Confirm the successful transaction.
Apps Offering UPI Tap And Pay
As of now, UPI Tap and Pay is available on the NPCI-run BHIM app and Paytm. While it is currently live for limited users on Paytm, other UPI apps have the freedom to introduce this feature at their discretion. The NPCI will continue working closely with UPI app operators to monitor the rollout progress.
