The National Payments Corporation of India (NPCI) has introduced a new mode called UPI Tap & Par has been developed for UPI transactions apart from the current UPI Payment methods (such as Scan & Pay, Pay to Contact, UPI Number, etc.),
This is expected to go live on the mentioned functionality by 31st January’ 2024. The same existing limits of UPI are applicable for Tap & Pay modes of payment. Tap & Pay mode will be by default enabled for the customers. Loading of money is not mandatory for the Tap & Pay mode of payment.
What is UPI tap and pay
It’s just like the well-known Pay to Contact, Scan & Pay, and other features, but with a twist. By using NFC, Tap & Pay obtains the Payee UPI ID/VPA instead of the camera. This innovative method simplifies, secures, and expedites your UPI transactions. Note that only mobiles and devices with NFC capability have the access to UPI Tap & Pay
How UPI tap & pay is different from scan and pay?
In Scan & Pay, you scan the receiver’s QR with your camera to grab their UPI ID/VPA.
Now, enter Tap & Pay – instead of scanning, you tap your device on the receiver’s device to fetch their UPI ID/VPA through NFC. It’s that simple! Two ways to pay.
At which places tap & pay transactions can be performed?
Tap & Pay transactions can be performed on NFC smart QRs/ NFC QR soundboxes or UPI smart tags with NFC.How does a customer make a Tap & Pay transaction?
Ready to Tap & Pay? First, open your app.
Next, hit the Tap & Pay icon and enter the amount. Now, for the last aspect– tap on the Payee’s QR, soundbox, or UPI Tag.
Voila! Your app confirms the success, and you’re good to go.
Tap & Pay is interoperable?
Yes, Customer can Tap on any NFC-enabled QRs/soundboxes or UPI smart tags using any APP (live on Tap & Pay functionality) to complete the payment.
The structure for UPI Tap & Pay transactions is as follows, according to the NPCI circular dated December 19, 2023.
· UPI APPs shall ensure to provide the Tap & Pay mode of payment only through mobiles devices having NFC capability.
· UPI APPs shall take permission from the customer to enable NFC for Tap & Pay transactions.
· UPI Apps shall provide separate call to action button for Tap & Pay mode on the homepage.
· On Tap, the transaction amount of Rs.500 and less will be processed through UPI LITE account, if enabled by the user, if not, then the transaction shall be processed with UPI PIN. I I l APPs are recommended to have the App passcode, biometrics or pattern based lock in case of UPI LITE.
· On Tap, the transaction amount more than Rs.500 will need UPI PIN and will be processed online.
· Membors shall ensure to comply with the NPCI brand guidelines updated on NPCI website for UPI lap & Pay.
· UPI Tap & Pay mode of payment shall be available on mobile devices with both android/ ios operating systems.
· Initiation mode ’06’ shall be used for UPI Tap & Pay transactions. All UPI Apps and banks shall ensure to process TAP & Pay transactions with initiation mode 06.
· Acquiring banks shall ensure that NFC tags used inside the UPI Smart QRs/ Tags are NFC forum certified (Type 2) and non-rewritable post personalisation. Acquiring banks shall be liable for the loss occurred due to tampering, if any. Acquiring banks shall perform the periodic checks of the UPI Smart QRs installed at the merchants and ensure replacement, if required.
Acquiring banks shall ensure to procure the NFC Tags from NPCI empanelled vendors as communicated via circular no. NPCl/2020-21/NETC/002 and NPCl/2022- 23/RuPay/013 and updated from time to time.
UPI QR specifications shall be embedded inside the UPI Smart Tag (NFC Tag), or in the paper-based UPI Smart QR (NFC QR). The details of the same are part of UPI Tap & Pay product kit.
Transactions performed using UPI Tap & Pay mode of payment will follow the existing dispute management process.