NPCI Announces UPI ‘Tap & Pay’ Feature, Recommends Rollout by January 31,In a recent circular, the National Payments Corporation of India (NPCI) has revealed plans to introduce the ‘Tap & Pay’ functionality within the Unified Payments Interface (UPI). The suggested target date for UPI members to implement this feature is January 31, 2023, though it’s important to understand that this is more of a recommendation than a strict deadline.
NPCI Announces UPI ‘Tap & Pay’ Feature, Recommends Rollout by January 31,Understanding UPI’s ‘Tap & Pay’
The concept of ‘Tap & Pay’ was introduced by RBI Governor Shaktikanta Das at the Global Fintech Fest in Mumbai. NPCI defines it as a ‘novel way to make your UPI transactions, keeping things easy, safe, and instant.’
NFC Technology Integration
One key aspect of ‘Tap & Pay’ is its utilization of Near Field Communication (NFC) technology for transactions. This implies that the feature can only be accessed on phones or devices equipped with NFC capability.
Initiating Payments
To make a payment using ‘Tap & Pay,’ users need to locate the corresponding button on their UPI app. Transactions are completed by tapping the device on the UPI Smart Tag/Smart QR.
Transaction Limits
For added security, transactions up to ₹500 will be conducted through UPI LITE, while transactions exceeding ₹500 will require users to enter their UPI PIN for authentication.
Compatibility
The ‘Tap & Pay’ feature is available for both Android and iOS users, ensuring a broad user base can benefit from the enhanced convenience it offers.
Current Availability
As of now, ‘Tap & Pay’ is live on two prominent apps – BHIM and Paytm. However, it’s important to note that Paytm’s implementation is currently available to a limited number of users.
Future Implications
The introduction of ‘Tap & Pay’ within the UPI framework is poised to revolutionize digital transactions, offering a seamless and secure method for users. As the January 31 recommendation approaches, the expectation is that more UPI members will embrace this feature, enhancing the overall UPI user experience.
Flexibility in Implementation
In conclusion, while the NPCI’s circular sets a target date for UPI members to go live with ‘Tap & Pay,’ the emphasis remains on the flexibility of implementation. The ‘Tap & Pay’ feature represents a significant step forward in digital payments, providing users with an efficient and secure alternative for UPI transactions.
Conclusion
The ‘Tap & Pay’ feature is set to transform the landscape of digital payments within the UPI framework. While the NPCI suggests a target date for implementation, the flexibility provided ensures that UPI members can adopt this innovative feature at their own pace.
FAQs
- How does ‘Tap & Pay’ enhance UPI transactions? ‘Tap & Pay’ streamlines UPI transactions, offering a novel and secure method for users.
- What is NFC technology, and how is it integrated? NFC (Near Field Communication) technology enables wireless communication, and ‘Tap & Pay’ utilizes it for secure transactions.
- Are there transaction limits for ‘Tap & Pay’? Yes, for security, transactions up to ₹500 use UPI LITE, and those exceeding ₹500 require a UPI PIN.
- Which UPI apps currently support ‘Tap & Pay’? Currently, BHIM and Paytm have implemented ‘Tap & Pay,’ with Paytm available to a limited user base.
- How does the NPCI recommendation impact UPI members? The NPCI recommendation for a January 31 rollout serves as a target, but UPI members have flexibility in implementation.
