Introduction: The National Payments Corporation of India (NPCI) has ushered in a new era in digital transactions with the introduction of “UPI Tap & Pay.” In a circular addressed to all members of the Unified Payments Interface (UPI), NPCI outlines the features, guidelines, and benefits of this innovative mode of payment, aimed at revolutionizing the way users engage in UPI transactions.
Detailed Analysis: The UPI Tap & Pay mode of payment comes with several key features to enhance user experience and security. It introduces a Tap & Pay mode for UPI transactions, requiring NFC-capable mobile devices. To initiate this mode, UPI apps must seek permission from users and provide a dedicated call-to-action button on the homepage.
For transactions up to Rs. 500, UPI Lite accounts will be utilized, with options for app passcodes, biometrics, or pattern-based locks for added security. Transactions exceeding Rs. 500 will necessitate the use of the UPI PIN and will be processed online.
NPCI emphasizes compliance with brand guidelines for UPI Tap & Pay, ensuring a standardized and secure user experience. The mode is available on mobile devices with both Android and iOS operating systems, promoting widespread accessibility.
Initiation mode ’06’ is designated for UPI Tap & Pay transactions, and NPCI urges all UPI apps and banks to adhere to this standard for processing transactions.
Acquiring banks play a crucial role in the implementation of UPI Tap & Pay, ensuring the use of NFC forum-certified (Type 2) and non-rewritable NFC tags. The responsibility lies with acquiring banks to perform periodic checks on UPI Smart QRs at merchants, replacing them if needed. The circular emphasizes procurement of NFC tags from NPCI-empanelled vendors for quality assurance.
The UPI QR specifications are embedded within the UPI Smart Tag or paper-based UPI Smart QR, as part of the UPI Tap & Pay product kit. Transactions made through this mode will follow the existing dispute management process.
Conclusion: NPCI’s introduction of UPI Tap & Pay marks a significant stride in the evolution of digital transactions. The emphasis on security, accessibility, and standardized processes ensures a seamless experience for users and merchants alike. As NPCI encourages UPI members to implement this functionality by January 31, 2024, the stage is set for a widespread adoption of this innovative payment mode. UPI Tap & Pay not only simplifies transactions but also reinforces the commitment to a secure and efficient digital payments ecosystem.
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NATIONAL PAYMENTS CORPORATION OF INDIA
NPCI/UPI/OC No.186/2023-24
19th December 2023
To,
All Members, Unified Payments Interface (UPI)
Dear Sir/Madam,
Subject: Introduction of UPI TAP & PAY mode of payments
In addition to the existing modes (Scan & Pay, Pay to Contact, UPI Number, etc.) of UPI Payments, “UPI Tap & Pay” is the new mode introduced for UPI transactions. Following is the construct for UPI Tap & Pay transactions:
1. UPI APPs shall ensure to provide the Tap & Pay mode of payment only through mobiles devices having NFC capability.
2. UPI APPs shall take permission from the customer to enable NFC for Tap & Pay transactions.
3. UPI Apps shall provide separate call to action button for Tap & Pay mode on the homepage.
4. 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 UPI APPs are recommended to have the App passcode, biometrics or pattern based lock in case of UPI LITE.
5. On Tap, the transaction amount more than Rs.500 will need UPI PIN and will be processed online.
6. Members shall ensure to comply with the NPCI brand guidelines updated on NPCI website for UPI Tap & Pay.
7. UPI Tap & Pay mode of payment shall be available on mobile devices with both android/ los operating systems.
8. 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.
9. 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.
10. Acquiring banks shall ensure to procure the NFC Tags from NPCI empanelled vendors as communicated via circular no. NPCI/2020-21/NETC/002 and NPCI/2022- 23/RuPay/013 and updated from time to time.
11. 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.
12. Transactions performed using UPI Tap & Pay mode of payment will follow the existing dispute management process.
With reference to the above, UPI Member are requested to take note and Go-live on mentioned functionality by 31st January’ 2024.
Yours Sincerely,
SD/‑
Kunal Kalawatia
Chief of Products
