UPI Tap and Pay-Innovative Payment Options

Context

• The National Payments Corporation of India (NPCI) introduced several new features on the United Payments Interface (UPI), including UPI Tap and Pay, focusing on enabling conversational transactions.
• The initiative aims to facilitate offline payments using the UPI architecture.

Tap and Pay Mechanism

1. Utilizes Near Field Communication (NFC) to capture the payee's UPI ID/VPA for making UPI payments.
2. Once the UPI ID is obtained, payments can be completed using either UPI PIN or UPI Lite.

Unified Payments Interface (UPI)

1. Launched by the National Payments Corporation of India (NPCI) in 2016.
2. Enables 24/7 money transfers between two bank accounts without requiring account details.
3. Customers register with NPCI through a virtual payment address known as UPI ID.
4. Boosts digitalization of payments, allowing direct payments to the merchant's bank account without involving a wallet.

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