India has introduced a new “Tap & Pay” service under its Unified Payments Interface (UPI), allowing users to make contactless payments by simply tapping their smartphones.

Under the new system, users can unlock an NFC-enabled smartphone and tap it against a point-of-sale (POS) terminal to complete a payment, eliminating the need to scan a QR code. The service can also be used in areas with weak or no internet connectivity on the customer’s phone, as it relies on the POS terminal’s connection instead.

In August alone, UPI processed 24.51 billion transactions, amounting to a total of INR 29.82 trillion, approximately USD 314 billion.

The launch comes as India prepares for the full rollout of Apple Pay. According to reports, Apple Pay is expected to launch in October 2026, initially allowing users to add Visa and Mastercard credit cards to Apple Wallet and make NFC payments through iPhones and Apple Watches. However, UPI support is reportedly not included in the initial rollout.

NPCI Chairman Ajay Kumar Choudhary said the new service has been designed to enable smooth payments even in areas with limited connectivity. With this shift, the trend of NFC-based payments is expected to accelerate across Indian shops and businesses, gradually moving away from QR code-based transactions.