UPI Could Soon Work Without Internet Using NFC Tap-to-Pay: Report Says NPCI Is Testing Offline Payments

UPI could soon support offline NFC tap-to-pay payments up to Rs 2,000, allowing users to make transactions without an internet connection. Here's everything we know about NPCI's reported new feature.

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The Unified Payments Interface of India has revolutionized the way Indians make payments for all kinds of products and services, starting from grocery purchases and paying for fuels up until paying utility bills and transportation costs. Nonetheless, there is one problem with the UPI that has not changed in time—most transactions cannot be made without active Internet access. That might change very soon.

According to a recent report, the National Payments Corporation of India is now developing an innovative NFC-enabled offline payment function that would let users make UPI payments without any Internet connection at all. If the function goes into operation, users will have to do nothing but tap their NFC-capable smartphones on a certain PoS terminal in order to make eligible payments.

Despite the fact that NPCI has not revealed anything official about the new payment function, this report may become another reason for Indians to appreciate digital payments more.

Offline UPI Payments Could Become More Convenient

As per the report, the upcoming offline payment system would enable users to make contactless UPI transactions worth up to Rs 2,000 without requiring either the smartphone or the merchant's PoS terminal to be connected to the internet at the time of payment.

This would be particularly useful in situations where mobile connectivity is unreliable, including:

• Underground metro stations

• Remote villages and rural regions

• Flights during travel

• Basement parking areas

• Large events with network congestion

• Other low-network locations

Instead of depending on QR code scanning and real-time internet connectivity, users would simply tap their NFC-enabled smartphone on a certified payment terminal to complete the transaction.

How The NFC-Based Offline UPI Feature Is Expected To Work

As per the report, the payment mechanism would be similar to the existing contactless card payments.

The customer will need to tap his/her NFC enabled phone on a compatible PoS terminal to initiate the payment process. Even when the two devices are offline, the payment will be authorised locally, and the merchant's PoS terminal will securely capture the payment details, and then forward them for verification when there is internet connectivity again.

In addition, NPCI has also started planning for the certification of compatible PoS terminals made by some major manufacturers.

In case this mechanism works successfully, it will eliminate the requirement of QR code payments for offline transactions, which will make UPI much more reliable for everyday transactions.

How Is This Different From UPI LITE X?

An offline payment system based on India's UPI protocol called UPI LITE X was launched by NPCI in 2023. There are a number of limitations with the existing offline payment system, though.

The process of an offline transaction using UPI LITE X involves the deduction of money from the sender's on-device UPI LITE wallet and its immediate deposit into the recipient's on-device UPI LITE wallet. An offline UPI LITE transaction can be made only from two Android smartphones having UPI LITE X capability.

The most significant drawback of this system is that offline transactions cannot exceed the sum of Rs 500.

The newly reported NFC payment system would represent a major upgrade by:

• Increasing the offline transaction limit to Rs 2,000

• Supporting merchant PoS terminals instead of only smartphone-to-smartphone transfers

• Offering a familiar tap-to-pay experience

• Reducing dependence on QR code scanning in offline environments

This could make offline UPI payments practical for everyday shopping at retail stores, supermarkets, restaurants, petrol pumps and public transport services.

UPI Adoption Continues To Break Records

This is an indication of the huge expansion that has been experienced within India's digital payments system.

By June 2026, UPI had recorded an incredible 22.72 billion transactions, with the total amount being paid at Rs 28.92 lakh crore. On average, this system managed to process nearly 757 million transactions every day, showing how entrenched UPI has become in people's daily lives.

With many users having shifted from cash to digital forms of payments, it has become essential for the digital payment systems to work regardless of the condition of the network.

An offline NFC payment method can be used to make UPI even more reliable and accepted by businesses and consumers.

What We Still Don't Know

While the report paints an exciting picture, several important details remain undisclosed.

NPCI has not yet officially confirmed the feature or shared information regarding:

• Which banks will support offline NFC UPI payments

• Which payment apps (such as Google Pay, PhonePe, Paytm and BHIM) will be compatible

• Which smartphone models will support the feature

• Which PoS terminals will be certified

• The official rollout timeline

Until NPCI makes a formal announcement, users should treat the feature as an upcoming possibility rather than a confirmed service.

With the introduction of NFC-enabled offline UPI payments by NPCI, it will be possible to address one of the most difficult problems of India’s digital payments system. Offline payments mean that transactions can be made in places where there is no internet access and this would greatly increase the reliability of UPI.

The Rs 2,000 cap, together with the merchant PoS terminal compatibility, would allow offline digital payments to go even further than currently available offline capability of UPI LITE X. Though some technical details are not yet known, there is every possibility that tap-and-go UPI payments would become just as easy and reliable as tap-and-go credit card payments.