Paying through UPI at physical stores could become easier for users without an active mobile data connection, with the Reserve Bank of India unveiling UPI Tap and Pay for NFC-enabled smartphones.

RBI Governor Sanjay Malhotra announced the feature on September 10 along with MyUPI, an AI-powered customer support and payment management platform developed by the National Payments Corporation of India.

UPI Tap And Pay Uses POS Terminal Connectivity

UPI Tap and Pay will allow users with NFC-enabled smartphones to make payments by unlocking their devices and tapping them on compatible NFC-enabled point-of-sale terminals.

The feature works in a manner similar to contactless card payments. Importantly, it does not mean that UPI will operate without internet connectivity in all situations.

Instead, the user’s smartphone does not require an active mobile internet connection for the transaction because the payment can be processed through the internet connection available on the POS terminal.

The facility will support different forms of UPI-linked accounts, including RuPay credit cards linked to UPI.

Payments Up To Rs 5,000 Without UPI PIN

Users will be able to complete smaller transactions of up to Rs 5,000 without entering a UPI PIN.

For payments above Rs 5,000, however, users will be required to enter their UPI PIN on the POS terminal.

The feature could make UPI payments more convenient at physical stores, particularly when users do not have access to mobile data while making a purchase.

NPCI Launches AI-Powered MyUPI Platform

Alongside Tap and Pay, the RBI introduced MyUPI, an AI-powered platform developed by NPCI to provide customer support and greater control over UPI accounts.

MyUPI is built on NPCI’s FiMI Small Language Model and is designed to bring together information related to a user’s UPI transactions and AutoPay mandates across different banks and UPI applications.

NPCI said the platform is intended to function as a broader trust and control layer rather than simply a customer-support service.

Safety Switch And Other New Controls

One of MyUPI’s key features is a Safety Switch, which will allow users to request that UPI debit transactions be declined if they believe their account has been compromised.

Another feature, UPI Number Delink, will enable users to stop receiving UPI payments through their mobile number.

The platform will also provide additional information about beneficiaries before a payment is completed.

For eligible transactions, MyUPI will support automated chargeback processing.

A feature called Transaction Replay will allow users to recall and repeat an earlier transaction through any UPI application.

UPI Moves Beyond Payments

UPI now accounts for 89 per cent of India’s digital transactions, according to NPCI, making it a central part of the country’s digital payments ecosystem.

The latest launches indicate an increasing focus on making UPI easier to use at physical payment terminals while strengthening customer support, security and user control.

MyUPI will offer round-the-clock multilingual assistance along with self-service options, NPCI said.

Building On Biometric UPI Authentication

The new features also follow NPCI’s efforts to simplify how users authenticate UPI transactions.

Biometric authentication for UPI was launched at GFF 2025, and the number of biometric-authenticated UPI transactions had crossed 6.29 billion as of August 31, 2026, according to NPCI.

Together, UPI Tap and Pay and MyUPI mark a further expansion of the digital payments ecosystem, with the focus extending beyond processing transactions to making payments more convenient, secure and easier for users to manage.

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