India’s popular Unified Payments Interface (UPI) could soon work even without an internet connection, making digital payments more reliable in places where mobile networks are weak or unavailable. The National Payments Corporation of India (NPCI) is reportedly developing a new offline tap-to-pay feature that will allow users to make UPI payments of up to Rs 2,000 without internet access.
The proposed feature is aimed at making digital payments seamless in situations where connectivity is often a challenge, such as during flights, in underground metro stations, tunnels and remote locations. Today, most UPI transactions fail if either the customer or the merchant loses internet connectivity. The new system seeks to eliminate that problem.
The offline payment service is expected to work through UPI Lite, NPCI’s solution for low-value transactions. Users will first need to add money to their UPI Lite balance while connected to the internet. Once the balance is loaded, they can use those funds to make payments even when there is no network.
The system will use Near Field Communication (NFC) technology, allowing customers to simply tap their NFC-enabled smartphones on compatible payment terminals. Since the payments will be made from the preloaded UPI Lite balance, users may not have to enter their UPI PIN for transactions within the prescribed limit, making the process faster and more convenient.
The transaction value is expected to be capped at Rs 2,000, in line with the existing UPI Lite wallet limit. Because the money is already stored in the UPI Lite balance, the payment can be completed offline and updated with the banking system once connectivity is restored.
To support the rollout, NPCI is also reportedly preparing a certification process for offline-enabled point-of-sale (PoS) terminals. Merchants will require these certified devices to accept offline tap payments. Certification of compatible terminals is expected to begin later this year.
The feature is expected to benefit millions of users who frequently face payment disruptions due to poor network coverage. Air travellers, metro commuters, passengers travelling through tunnels and shoppers in low-connectivity areas could continue making small digital payments without depending on internet availability.
Merchants are also likely to gain from the new system. Retailers at airports, metro stations, transport hubs and other locations with inconsistent connectivity would be able to accept digital payments without worrying about network interruptions. This could also reduce dependence on cash for low-value purchases.
India has emerged as a global leader in digital payments, with UPI handling billions of transactions every month. NPCI has steadily expanded the platform through innovations such as UPI Lite, UPI Circle, credit on UPI and international UPI acceptance, making digital payments more accessible and convenient.
The proposed offline tap-to-pay feature is another step towards strengthening India’s cashless economy and improving the resilience of the UPI ecosystem. While NPCI has not officially announced a launch timeline, reports suggest development is progressing and the required payment infrastructure is being readied.
If launched, the facility could ensure that UPI payments remain quick, secure and convenient even when the internet is unavailable, bringing greater convenience to everyday transactions and further boosting digital payment adoption across the country.
