PhonePe, Visa roll out 3 new payment features for contactless, overseas QR transactions

PhonePe and Visa have announced three new payment features aimed at expanding the use of card-based digital payments through smartphones. The services will allow eligible users to make contactless card payments using Android phones, make payments at supported QR codes in select overseas markets and enable small merchants to accept card payments without a dedicated point-of-sale (POS) terminal.

The features were unveiled at the Global Fintech Fest 2026 on September 9, with PhonePe saying they will be rolled out in phases.

Tap to pay with Visa cards

Under the first offering, PhonePe users with eligible Visa cards will be able to tokenise their cards on the app and use an Android smartphone to make contactless payments at compatible POS terminals.

The feature is scheduled to begin rolling out from September 9. PhonePe said users may be able to make payments even in low-connectivity environments, subject to the requirements of the underlying payment system and device.

The service builds on Visa card tokenisation already available on PhonePe. Tokenisation replaces sensitive physical card details with a digital token, reducing the need to share or store the actual card number during transactions.

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PhonePe introduces overseas QR payments

PhonePe is also introducing cross-border QR payments through Visa-supported QR codes. The feature will allow Indian users to scan eligible QR codes while travelling across 14 international markets.

The markets include Singapore, Malaysia, Thailand, Vietnam, Indonesia, Sri Lanka, Japan, China and South Korea, among others. PhonePe said the facility will be rolled out to users soon.

The feature is designed to allow users to make payments through linked Visa cards on the PhonePe app instead of relying on physical cards when travelling abroad. However, users will need to check whether a particular merchant QR code is supported before making a transaction.

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Small merchants can accept cards without POS machines

The third feature, called Smart Accept, is aimed at small merchants that do not have a separate card POS terminal.

Under Smart Accept, a compatible smartphone can be used to accept contactless card payments. Customers can tap a physical contactless card or a tokenised mobile wallet against the merchant’s smartphone.

PhonePe said merchants will not need to purchase separate POS hardware. Smart Accept will also be integrated with the company’s existing merchant QR dashboard, allowing businesses to manage card and QR payments through a single interface.

The new services expand the ways Visa cardholders can use their cards through PhonePe, although availability will depend on factors such as the card, smartphone, merchant acceptance and country.

PhonePe said it had more than 71.5 crore registered users as of July 2026, along with an acceptance network covering over 5 crore merchants.

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