NPCI launches Tap & Pay via UPI: Know key features and benefits

As per the latest business developments, The National Payments Corporation of India (NPCI) has introduced two new features on the Unified Payments Interface (UPI): a tap-and-pay facility for point-of-sale terminals and an AI-powered customer backing platform called MyUPI.

Reserve Bank of India (RBI) Governor Sanjay Malhotra unveiled both innovations at the Global Fintech Fest (GFF) 2026 in Mumbai on September 10. The launch event was attended by NPCI Non-Executive Chairman and Independent Director Ajay Kumar Choudhary, along with senior bankers and fintech founders.

What is UPI 'Tap & Pay'

UPI Tap & Pay allows users to complete payments by simply unlocking an NFC-enabled smartphone and tapping it on an NFC-enabled POS terminal. Unlike regular UPI transactions, the feature does not require the user's mobile internet connection; payments go through using the POS machine's own internet link, making the process faster at the checkout counter.

The facility supports multiple account types linked to UPI, including RuPay Credit Card on UPI. Transactions up to Rs 5,000 can be completed without a UPI PIN, while payments above this threshold will require PIN entry on the POS terminal.

NPCI stated the new feature builds on UPI Biometric Authentication, which was rolled out at GFF 2025. Biometric-authenticated UPI transactions have crossed a cumulative volume of 6.29 billion as of August 31, 2026, reflecting rising consumer preference for faster, frictionless payment methods.

MyUPI: AI-powered 'UPI Help 2.0'

The second launch, MyUPI, is built on NPCI's in-house Small Language Model, FiMI, and is being positioned as an upgrade to the existing UPI Help backing system. The platform gives users a consolidated view of their UPI transactions and AutoPay mandates across banks and apps.

Key features under MyUPI include:

Safety Switch: Lets users request that UPI debit transactions be declined if they suspect their account has been compromised.

UPI Number Delink: Allows users to delink their mobile number from receiving UPI payments.

Payee Context-based Information: Surfaces additional details around a beneficiary before a payment is made.

Automated Chargeback Processing: Enables real-time chargeback creation for eligible transactions, aimed at cutting complaint resolution times for banks

Transaction Replay: Lets users recall and repeat past transactions through any UPI app

NPCI stated the platform will offer round-the-clock, multilingual, self-service backing, positioning MyUPI as "a proactive trust and control layer" rather than a conventional grievance redressal tool.

“Together, these features will make MyUPI a platform beyond backing to a proactive trust and control layer. The platform will offer 24×7 multilingual backing and facilitate seamless self service through a user-friendly interface. It delivers greater transparency, safety, and convenience for users and enables banks and UPI apps to provide faster, more efficient assistance experiences,” NPCI stated in the press release.