The National Payments Corporation of India (NPCI) has introduced two significant upgrades to the Unified Payments Interface (UPI) system: UPI Tap & Pay, an NFC-based contactless payment method, and MyUPI, an AI-powered central support framework. These innovations, unveiled by RBI Governor Sanjay Malhotra at the Global Fintech Fest 2026 on September 10, 2026, are set to transform digital transactions in India.
UPI Tap & Pay: Seamless Contactless Transactions
UPI Tap & Pay offers a streamlined alternative to the traditional scan-and-pay method. Users with NFC-enabled smartphones can now complete payments by simply tapping their device on a compatible Point-of-Sale (PoS) terminal, much like a contactless debit or credit card. This feature eliminates the need to scan QR codes or manually enter bank details and UPI IDs.
For transactions under Rs 5,000, users will not be required to enter a UPI PIN, making small-value payments exceptionally fast. Payments exceeding Rs 5,000 will still necessitate a PIN for authorization, which can be entered on the PoS terminal or app interface. The system creates secure, encrypted tokens for each transaction, ensuring data privacy. Crucially, UPI Tap & Pay functions even without mobile data or Wi-Fi on the user's phone, relying on the PoS machine's internet connection for communication.
Introducing MyUPI: AI-Powered Support and Control
Alongside Tap & Pay, NPCI has launched MyUPI, an advanced AI-powered platform designed to serve as a unified 'trust and control layer' across all UPI applications and partner banks. Built on NPCI's proprietary Small Language Model (SLM) called FiMI, MyUPI offers a comprehensive suite of services.
Users will benefit from a unified portfolio view, providing a consolidated look at their UPI transactions and active AutoPay mandates. The platform also features a safety switch, automated chargeback processing for eligible failed or disputed transactions, and 24/7 AI-powered customer assistance. MyUPI aims to centralize data on payment history, fraud management, and user support, significantly enhancing the overall UPI experience.
Enhancing India's Digital Payment Landscape
These new features arrive as India's contactless payments market is poised for increased competition, with services like Apple Pay expected to debut soon. NPCI's upgrades underscore a commitment to making UPI more accessible, secure, and user-friendly, solidifying its role as a cornerstone of India's digital economy. The innovations are expected to further drive the adoption of digital payments, potentially impacting trends such as ATM cash withdrawals.