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India Develops Offline NFC Tap‑and‑Pay for UPI

NPCI’s planned system would let preloaded UPI Lite wallets pay certified PoS terminals without internet and could extend digital transactions to low‑connectivity places.

Overview

  • On Tuesday, July 21, 2026, multiple outlets reported that the National Payments Corporation of India is developing an NFC-based offline ‘tap and pay’ capability for UPI that would work when both the payer’s phone and the merchant PoS are offline.
  • The service would draw funds from an on-device UPI Lite balance so users can tap an NFC-enabled smartphone to pay without entering a UPI PIN at the time of the transaction.
  • Reports say transactions will be limited to about Rs 2,000 and that merchant terminals will store payment authorisations locally and sync them with banks when connectivity is restored.
  • NPCI is expected to begin certifying PoS manufacturers and terminals and banks and third-party UPI apps are working on integrations, but there is no official NPCI launch notice or operational guideline yet.
  • The feature builds on prior offline work such as UPI Lite X and aims to make UPI usable in airplanes, metro tunnels, rural areas and other low‑connectivity settings while raising practical questions about fraud controls and reconciliation.