The National Payments Corporation of India (NPCI) is reportedly developing a new offline UPI payment feature that will allow users to make tap-to-pay transactions without an internet connection. According to multiple reports, the proposed system will enable payments of up to Rs 2,000 using NFC-enabled smartphones, even when both the customer’s device and the merchant’s point-of-sale (PoS) terminal are offline.
The feature is expected to work similarly to contactless card payments. Users will be able to tap their NFC-enabled smartphones on certified merchant terminals, with the payment being deducted from a preloaded UPI Lite balance. Since the transaction is processed offline, users will not be required to enter a UPI PIN for payments within the prescribed limit.
According to a Business Standard report cited by Moneycontrol and other publications, NPCI is likely to begin certifying compatible PoS devices from leading terminal manufacturers this year. Once certified, merchants equipped with these terminals will be able to accept offline UPI payments in areas where internet connectivity is unavailable or unreliable.
The reported feature is aimed at addressing payment challenges in locations such as aircraft cabins, underground metro and railway networks, tunnels, and other environments where mobile networks are weak or unavailable. It could also serve as a fallback option during temporary network outages, ensuring uninterrupted digital payments.
The initiative builds on NPCI’s existing offline payment efforts through UPI Lite and UPI Lite X, which support low-value offline transactions using NFC technology. However, the proposed system is expected to expand offline acceptance by allowing payments at conventional merchant PoS terminals rather than requiring NFC-enabled QR codes or dedicated payment devices.
Neither NPCI nor the Reserve Bank of India has officially announced the feature or shared a rollout timeline. As of now, the development remains based on media reports citing people familiar with the matter.
FAQs
- What is the offline UPI tap-to-pay feature?
It is a reportedly upcoming NPCI feature that would allow users to make UPI payments of up to ₹2,000 without an internet connection by tapping an NFC-enabled smartphone on a compatible PoS terminal. - Will users need an internet connection to make these payments?
According to reports, no. The feature is being designed to work even when both the customer’s phone and the merchant’s payment terminal are offline, making it useful in areas with poor or no network connectivity. - Where can the offline UPI feature be used?
If launched, it is expected to be useful in locations such as flights, underground metro stations, tunnels, and other low-connectivity areas, where regular UPI payments may not work. - What is the transaction limit for offline UPI payments?
Reports suggest that the offline tap-to-pay feature will support transactions of up to ₹2,000, with payments made using a preloaded UPI Lite balance. - Has NPCI officially announced the feature?
No. As of now, NPCI has not officially confirmed the rollout or launch date. The development is based on media reports citing people familiar with the matter.
