Picture this: you are at a café or metro station, and instead of scanning a QR code, you simply tap your phone or card to pay. That is UPI Tap and Pay, a contactless payment solution that combines NFC technology with India’s UPI network. It enables instant transactions by tapping, removing the need for QR scans or PINs.
Designed for speed and convenience, it is set to transform digital payments across busy places like stores, metros, and cafés. For businesses, adopting UPI Tap and Pay through platforms like Razorpay ensures faster, safer, and smoother transactions in one system.
Key Takeaways
Key Takeaways
UPI Tap & Pay combines NFC technology with UPI for seamless contactless payments.
It offers faster and more secure transactions compared to QR code scanning
Ideal for high-traffic environments like retail, metros, cafés, and events
Razorpay enables merchants to accept UPI Tap & Pay alongside other payment methods
What is UPI Tap and Pay?
UPI Tap and Pay is a contactless payment feature that leverages NFC technology to enable instant UPI transactions. Unlike traditional UPI payments, which require scanning a QR code or entering a UPI PIN, Tap and Pay lets you tap your NFC-enabled smartphone or card at a compatible point-of-sale (POS) terminal to complete the transaction.
Here are the key aspects of UPI Tap and Pay:
- Powered by NFC technology
- Works with UPI-linked bank accounts
- Requires NFC-enabled smartphones or UPI cards
- Offers faster and more convenient transactions compared to QR code-based UPI payments
Did You Know?
India plans to target 300 million new users for UPI payments, paving the way for mass adoption of UPI Tap & Pay.
How Does UPI Tap and Pay Work?
The process of making a payment using UPI Tap and Pay is incredibly simple and intuitive. Here’s a step-by-step breakdown:
- Customer taps their NFC-enabled device or card on the merchant’s POS terminal.
- The UPI app prompts the customer for authentication (if required).
- The customer’s bank processes the transaction in real-time.
- The merchant receives instant confirmation of the successful payment.
Compared to QR code-based UPI transactions, UPI Tap and Pay offers a significantly faster and smoother experience. By eliminating the need to scan a code and manually enter transaction details, Tap and Pay reduces transaction time, making it ideal for high-volume environments.
Benefits of UPI Tap and Pay for Businesses
Adopting UPI Tap and Pay offers numerous benefits for businesses across various industries. Some of the key advantages include:
Business Benefits
- Faster checkouts, leading to reduced queues and waiting times
- Ideal for high-volume environments like retail stores, metro stations, and events
- Reduced transaction friction, resulting in higher customer satisfaction
- Seamless integration with the existing UPI ecosystem
Customer Benefits
- Tap & go convenience, eliminating the need to scan QR codes or enter PINs
- Secure authentication for high-value transactions
- Works even in poor lighting conditions, where QR code scanning may fail
Razorpay’s UPI Tap and Pay-enabled POS terminals and UPI APIs make it easy for merchants to get started with this cutting-edge payment technology.
UPI Tap and Pay vs QR Code Payments
While both UPI Tap and Pay and QR code payments fall under the UPI umbrella, they differ significantly in how they are executed and in their use cases. Here’s a comparison of the two payment methods:
| Feature | UPI Tap & Pay | QR Code Payments |
| Technology | Uses NFC (Near Field Communication) technology, enabling contactless payments when a user taps their smartphone or NFC-enabled card on a payment terminal. | Relies on QR (Quick Response) code scanning, where users scan a static or dynamic code through a UPI app to initiate payments. |
| Speed | Extremely fast since no scanning or manual input is required. | Slightly slower due to scanning, data reading, and manual amount entry (for static codes). |
| Hardware | Requires NFC-enabled smartphones or cards and merchant terminals that support NFC. | Needs only a smartphone with a camera; merchants just display printed or digital QR codes—no extra hardware. |
| Best Use Case | Ideal for quick in-person transactions like metro gates, retail stores, and fuel stations where speed is crucial. | Best suited for small businesses and remote areas with limited infrastructure or budget for NFC terminals. |
| Adoption Level | Still gaining traction, primarily in metro cities and modern retail outlets. | Widely adopted nationwide; accepted by nearly all UPI merchants across India, urban and rural alike. |
Industries That Can Benefit Most
While UPI Tap and Pay can transform payments across sectors, certain industries stand to benefit most from its speed, convenience, and efficiency. Here are some prominent examples:
- Retail Chains and Supermarkets: Customers can simply tap their phones or cards at the checkout counter, completing payments within seconds. This reduces long queues, ensures quicker turnover, and improves overall customer satisfaction, especially during peak shopping hours.
- Public Transport (Metros and Buses): Commuters can tap their devices or cards at entry and exit gates, allowing for seamless ticket validation. This speeds up passenger flow, minimises congestion during rush hours, and supports a fully digital fare system.
- Cafés and Quick-service Restaurants: In high-footfall outlets, quick tap payments help serve more customers in less time. It eliminates the need for cash handling or scanning QR codes, allowing faster order processing and an enhanced dining experience.
- Events and Stadiums: Large gatherings such as concerts or sports matches can manage payments more efficiently with tap-based transactions. Visitors can quickly buy tickets, food, or merchandise without delays, improving both crowd management and security.
Razorpay’s UPI solutions are designed to meet the unique needs of each industry and provide seamless integration with existing payment infrastructure.
Security and Compliance in UPI Tap & Pay
Security is a critical aspect of any digital payment system, and UPI Tap and Pay is no exception. Here are some safety features it includes:
- PCI DSS Compliance: The system complies with the Payment Card Industry Data Security Standard (PCI DSS), ensuring that all sensitive cardholder data is stored, processed, and transmitted securely across networks.
- Two-factor Authentication: For high-value or sensitive transactions, users must complete an additional verification step, such as entering a UPI PIN, adding an extra layer of protection against unauthorised use.
- Tokenisation: Instead of sharing actual card details, unique digital tokens are generated for each transaction. This ensures that even if data is intercepted, it cannot be reused or traced back to the original card.
- RBI-regulated UPI Framework: All transactions are routed through the RBI-supervised Unified Payments Interface (UPI) network, which ensures compliance with national security guidelines and provides real-time monitoring for fraud prevention.
Beyond built-in security, Razorpay strengthens UPI Tap and Pay protection using advanced fraud detection and risk management tools powered by machine learning and real-time analysis, helping merchants prevent fraud and ensure safer transactions for all.
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FAQs
What is UPI Tap and Pay?
UPI Tap & Pay is a contactless payment method that lets you make UPI transactions by tapping your NFC-enabled smartphone or card at a POS terminal.
How is it different from QR-based UPI?
UPI Tap & Pay uses NFC technology for instant tap-based payments, while QR-based UPI requires scanning a QR code and manually confirming the transaction.
Is UPI Tap & Pay secure?
Yes, UPI Tap & Pay is highly secure. It uses two-factor authentication, tokenisation, and complies with PCI DSS standards. Additionally, the proximity required for NFC transactions reduces the risk of unauthorised payments.
Do all smartphones support it?
Most modern smartphones with NFC capabilities support UPI Tap & Pay. India already has over 300 million NFC-enabled smartphones, and this number is growing rapidly.
Can merchants enable Tap & Pay with Razorpay?
Absolutely! Razorpay offers a comprehensive suite of UPI solutions, including Tap & Pay-enabled POS devices and UPI APIs. Merchants can easily integrate UPI Tap & Pay alongside other payment methods, such as QR codes, cards, and wallets.
