The National Payments Corporation of India (NPCI) has announced that Unified Payments Interface (UPI) members can go live with UPI’s ‘Tap & Pay’ functionality by January 31 next year, according to a report by Business Standard. However, this is not a ‘deadline’ for members to go live with the facility. The new payment method will help the users of BHIM, Gpay, Paytm, PhonePe, and other UPI apps.
The UPI Tap & Pay was launched in September 2023 as an additional mode of UPI payment, similar to Scan and Pay, Pay to Contacts, etc. In this new method, instead of scanning, you tap your device on the receiver’s device to fetch their UPI ID/VPA through NFC. The same existing limits of UPI are applicable for Tap & Pay modes of payment.
The customer’s device should have NFC capability for using Tap & Pay mode of payment. The UPI ID/VPA of the receiver is written inside the NFC tags in QRs/soundboxes or UPI Smart Tags. When the Payer taps his/her phone on NFC-enabled QRs/soundbox, the UPI ID of the receiver is fetched by the payer APP.
Your device needs the internet to complete the transaction. Tap & Pay mode will be by default enabled for the customers. Disabling the Tap & Pay mode option is not available for the customers, just like Scan and Pay, Pay to Contacts, etc.
Requirement of UPI Pin
If your transaction is under ₹500 and you have enabled UPI LITE, your LITE balance foots the bill without the need for a PIN. Not on UPI LITE? No worries, your regular bank account will be sufficient, and a simple PIN ensures the transaction sails through.
Currently, BHIM and Paytm (Live with Limited users) are the apps that support the Tap & Pay feature.
Step-by-step guide on how to use the ‘Tap & Pay’ feature:
1. Open the UPI App: Start by opening your UPI application. This could be any app that supports the ‘Tap & Pay’ feature, such as BHIM or Paytm.
2. Select the Tap & Pay icon: Look for the ‘Tap & Pay’ icon on your UPI app and click on it.
3. Enter the amount: Input the amount you wish to send to the receiver.
4. Tap your device on the receiver’s device: Bring your device close to the receiver’s device and tap it. Ensure that both devices have NFC capability. Enter the PIN if the app requests and hit enter.
5. Transaction successful: If everything goes well, you should see a transaction success message on your screen.
Note: The receiver never has to enter their UPI code or any code to receive the money in their account.