India could soon make UPI payments possible even when both the customer and merchant are offline. The National Payments Corporation of India (NPCI) is working on a new tap-and-pay feature that would allow users to make payments at merchant point-of-sale (PoS) terminals without an active internet connection.
The proposed facility will use Near Field Communication (NFC) technology and is expected to support offline UPI transactions of up to ₹2,000. The move could make digital payments more reliable in places where mobile networks are weak, unavailable or temporarily disrupted.
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How will offline UPI payments work?
Under the proposed system, users will first need to load money into their UPI Lite wallet while they are connected to the internet. Once the balance is available, they can use an NFC-enabled smartphone to tap on an NPCI-certified offline PoS terminal and complete the payment.
Because the transaction will be made using the user’s preloaded UPI Lite balance, eligible payments will not require a UPI PIN or additional authentication at the time of purchase. The offline PoS terminal will securely store the transaction details and upload them for verification when an internet connection becomes available again.
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The system could be particularly useful for merchants operating in areas with inconsistent network coverage. It would allow them to continue accepting digital payments even when their PoS terminals temporarily lose internet connectivity.
Where could offline UPI payments be used?
The proposed feature could prove useful in several situations where internet access is limited or unreliable. These could include aircraft cabins, underground metro and railway networks, remote areas with poor mobile coverage and other locations where conventional online UPI transactions may not work smoothly.
For consumers, the ability to simply tap their smartphone on a compatible PoS terminal could make digital payments more convenient in such environments. For merchants, it could reduce dependence on continuous internet connectivity to accept UPI payments.
NPCI builds on UPI Lite X
The new facility builds on the offline payment capabilities introduced through UPI Lite X in 2023. The earlier system enabled limited offline NFC-based transactions using devices such as NFC-enabled QR codes, stickers and soundboxes.
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The proposed tap-and-pay functionality would take offline UPI payments a step further by extending acceptance to conventional merchant PoS terminals. This means users could potentially make payments by tapping their smartphones, even when the terminal itself is temporarily disconnected from the internet.
When will offline UPI PoS payments launch?
NPCI is expected to begin certifying compatible PoS terminals from major manufacturers in 2026. Banks and payment service providers would then be able to integrate the functionality into their UPI applications and merchant payment systems.
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However, NPCI has not yet announced an official rollout date or detailed implementation guidelines. The exact timeline will depend on the certification of compatible terminals and subsequent integration by banks and payment service providers.
If introduced as planned, offline UPI payments could strengthen India’s digital payment infrastructure by making transactions possible in more low-connectivity environments. The feature could be especially relevant for public transport, travel and remote locations, where uninterrupted internet access cannot always be guaranteed.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
