India is reportedly preparing to introduce a new Unified Payments Interface (UPI) feature that will allow users to make digital payments without an active internet connection. The upcoming capability is expected to improve payment accessibility in remote locations, underground metro networks and during flights where internet connectivity is limited.
According to a report, the National Payments Corporation of India (NPCI) is expected to begin certifying compatible merchant Point-of-Sale (PoS) terminals later this year to support offline UPI transactions.
The new feature is expected to use Near Field Communication (NFC) technology. Users will reportedly be able to make payments by simply tapping their NFC-enabled smartphones on supported PoS terminals without requiring an internet connection.
Initially, offline UPI transactions are expected to be capped at Rs. 2,000 per payment. The feature is likely to operate through an on-device UPI Lite wallet, where users will first load funds while connected to the internet. Once the balance is added, payments can be completed offline using the UPI Lite wallet without entering a UPI PIN.
“PoS companies will need a certification from NPCI to accept UPI in an offline setting. They can create an application on top of it after they get certified,” the report quoted a person from a fintech firm familiar with the development as saying.
After receiving NPCI certification, merchant PoS providers will be able to develop applications and services that support the offline tap-to-pay functionality. The initiative is expected to strengthen digital payment infrastructure and extend UPI usage to locations with limited or no network connectivity.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.