The National Payments Corporation of India (NPCI) has significantly upgraded its Unified Payments Interface (UPI) system with the introduction of two major features: UPI Tap & Pay for NFC-enabled devices and the AI-powered MyUPI platform. These advancements, unveiled by Reserve Bank of India Governor Sanjay Malhotra at the Global Fintech Fest 2026 on September 10, 2026, are set to transform the digital payments landscape in India.
UPI Tap & Pay: Seamless Contactless Transactions
The new UPI Tap & Pay feature streamlines the payment process, moving beyond the traditional scan-and-pay method. Users with NFC-enabled smartphones can now complete transactions by simply tapping their device on compatible Point-of-Sale (PoS) terminals, much like using a contactless debit or credit card. This eliminates the need to scan QR codes, manually enter amounts, or input a UPI PIN for small-value payments.
For transactions under Rs 5,000, users will not be required to enter their UPI PIN, significantly speeding up the checkout process. Payments exceeding Rs 5,000 will still necessitate a UPI PIN for authorization, entered either on the PoS terminal or the app interface. The system creates a secure, encrypted token for each transaction, ensuring data privacy, and operates without requiring the user's mobile data or Wi-Fi, relying instead on the PoS machine's internet connection.
MyUPI: An AI-Powered Trust and Control Layer
Alongside Tap & Pay, NPCI introduced MyUPI, an artificial intelligence-powered central support and control framework. Built on NPCI's proprietary Small Language Model (SLM) named FiMI, MyUPI serves as a unified "trust and control layer" across all UPI applications and partner banks.
This innovative platform offers a comprehensive suite of services, including a unified portfolio view that details UPI transactions and active AutoPay mandates. MyUPI also integrates a safety switch, automated chargeback processing for real-time resolution of eligible failed or disputed transactions, and 24/7 AI-powered assistance, aiming to provide users with enhanced security, control, and customer support for their digital payment activities.