UPI has made digital payments almost effortless in India, but one limitation remains: transactions usually depend on an internet connection. That could soon change as a new report suggests the National Payments Corporation of India (NPCI) is developing an NFC-based offline payment feature. This would allow users to tap and pay at compatible point-of-sale (PoS) terminals even when both the smartphone and the payment terminal are offline.
If introduced, the capability could make UPI payments more reliable in places such as underground metro stations, remote areas, flights and other locations where mobile networks are often weak or unavailable. NPCI hasn’t officially confirmed the development.
How NFC-based UPI could work
According to a Business Standard report, the new feature will let users make contactless UPI payments by tapping an NFC-enabled smartphone on a certified PoS terminal, similar to how contactless debit and credit card payments work today. It is expected to support transactions of up to Rs 2,000, making it suitable for everyday purchases such as groceries, food, fuel and public transport.
The report adds that NPCI is expected to begin certifying compatible PoS devices from leading terminal manufacturers later this year. In the absence of internet connectivity, the PoS terminal would reportedly record the transaction authorisation and submit it for verification once the network is restored.
How existing offline UPI payments work
Offline UPI payments already exist through UPI LITE X, which NPCI introduced in 2023. The feature allows users to make payments without an active internet connection by using near-field communication (NFC). Under UPI LITE X, both the payer and the recipient must have the feature enabled on supported Android smartphones. Payments are deducted from the sender’s on-device UPI LITE wallet and credited to the receiver’s LITE wallet instantly, without requiring network connectivity. However, offline transactions are currently capped at Rs 500.
The reported feature would expand this capability beyond smartphone-to-smartphone payments by bringing offline NFC payments to merchant PoS terminals while increasing the transaction limit to Rs 2,000. This could reduce dependence on QR codes in situations where connectivity is unavailable.
The move comes as UPI continues to see record adoption. In June 2026 alone, the platform processed 22.72 billion transactions worth Rs. 28.92 lakh crore, averaging 757 million transactions every day. As digital payments become the default for many Indians, improving reliability in low-network conditions is becoming increasingly important.
The reported feature could make UPI more dependable for small in-store purchases. However, key details, including supported banks, payment apps and compatible PoS terminals, remain unknown. Until NPCI formally announces the feature, buyers looking for NFC-enabled smartphones should view it as a potential future benefit
