News in Short

• NPCI has launched UPI Tap & Pay for NFC-enabled smartphones and POS terminals.
• Users can make payments by unlocking their phone and tapping it on a compatible POS machine.
• The phone does not need mobile internet for the transaction.
• PIN-free UPI payments are available for transactions up to Rs. 5,000.
• NPCI has also introduced MyUPI, an AI-powered customer support service.

The National Payments Corporation of India (NPCI) has introduced two new services aimed at making UPI payments easier and more useful. UPI Tap & Pay brings NFC-based contactless payments to compatible smartphones, while MyUPI adds AI-powered tools to help users manage their UPI activity.

The services were unveiled by RBI Governor Sanjay Malhotra at the Global Fintech Fest 2026 in Mumbai on September 10.

UPI Tap & Pay lets you pay without mobile internet

UPI Tap & Pay is designed for phones with NFC support. Instead of scanning a QR code, users can unlock their smartphone and tap it on an NFC-enabled POS terminal.

The important part is that the phone does not need a mobile internet connection during the payment. The POS terminal’s internet connection handles the transaction.

This could be particularly useful in situations where mobile data is weak or unavailable. It also gives UPI a payment experience that feels closer to traditional contactless card payments.

The feature supports multiple UPI account types, including RuPay Credit Card on UPI.

For smaller payments, NPCI allows PIN-free transactions of up to Rs. 5,000. Payments above that limit will require the user to enter their UPI PIN on the POS terminal.

MyUPI brings AI to UPI customer support

NPCI has also introduced MyUPI, an AI-powered service built using its FiMI Small Language Model.

The service is designed to bring several UPI management and support functions together. MyUPI will provide users with a single view of their UPI transactions and AutoPay mandates across banks and UPI apps.

It also adds several features focused on payment security and convenience.

One of them is Safety Switch, which can allow users to request that UPI debit transactions be declined if they suspect their account has been compromised.

Another feature, UPI Number Delink, will allow users to remove their mobile number from receiving UPI payments.

MyUPI will also provide Payee Context-based Information, giving users additional information about a beneficiary before they complete a payment.

Repeating and disputing payments gets easier

NPCI is also adding tools aimed at reducing the effort involved in managing older transactions.

Transaction Replay will let users repeat a previous payment through any UPI app. This could be useful for recurring payments to merchants or people who have already been paid before.

For eligible transactions, Automated Chargeback Processing will support real-time chargeback creation. This could make the process of raising certain transaction disputes faster.

MyUPI is also expected to provide multilingual assistance around the clock, making the service more accessible to users across India.

What these new UPI features mean for users

UPI Tap & Pay focuses on making payments faster and less dependent on mobile connectivity. MyUPI, meanwhile, moves UPI support beyond basic transaction assistance by using AI to help users manage payments, mandates and disputes.

Together, the two launches show NPCI’s push to make UPI more versatile, from contactless payments at POS terminals to AI-powered account support.