UPI gets easier: NPCI introduces NFC-based Tap & Pay and AI-powered MyUPI

NPCI (National Payments Corporation of India) upgrades how we make Unified Payments Interface (UPI)-based payments with Tap & Pay for NFC-enabled phones and AI-powered tools with the MyUPI platform. RBI Governor Sanjay Malhotra unveiled these upgrades at the Global Fintech Fest 2026 on September 10, 2026.

UPI’s Tap & Pay feature arrives as Apple Pay is soon expected to debut in India, setting the stage for greater competition in the country’s contactless payments market.

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How will UPI Tap & Pay work?

The UPI Tap & Pay feature replaces the traditional scan-and-pay process, which requires scanning a QR code, entering the amount, and entering a PIN to name the payment. Now, Near Field Communication (NFC)-enabled phones can make payments similar to tapping a contactless debit or credit card, using your linked UPI account. However, the payment will only work across compatible Point-of-Sale (PoS) terminals.

This also eliminates entering your bank details or UPI ID; instead, the payment app creates a secure, encrypted token representing the transaction. The token carries the payment request from your phone to the terminal. In addition, it does not require mobile data or Wi-Fi, as the PoS machine's own internet connection manages the communication with the payment system.

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As per the NPCI press release, small-value payments under Rs 5,000 do not require entering a UPI PIN. However, payments over Rs 5,000 require entering your UPI PIN on the PoS terminal display or app interface to authorize the transfer.

What is MyUPI?

MyUPI is an AI-powered central support and control framework, built on NPCI's in-house Small Language Model (SLM) called FiMI. The government says MyUPI serves as a unified "trust and control layer" across all UPI apps and partner banks and offers data such as payment history, fraud management, and customer support in a single interface.

The platform offers a wide variety of services that include a unified portfolio view, providing details such as UPI transactions and active AutoPay mandates. It includes a safety switch, automated chargeback processing that triggers real-time chargebacks for eligible failed or disputed transactions, 24/7 AI-powered assistance, and much more.