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A major step is being taken to make digital payments in the country even easier. The National Payments Corporation of India (NPCI) is preparing to launch a new 'Tap to Pay' offline UPI feature soon. With this feature, users will be able to make payments without an internet connection simply by tapping their smartphones on a POS (Point of Sale) machine.

What is this new technology?
This new technology will be based on NFC (Near Field Communication). Users will not need to scan a QR code or keep their internet connection active. If the smartphone supports NFC and has a UPI Lite balance, the payment will be completed simply by tapping the phone against an authorized POS machine. This will make payments faster and more convenient than ever before.

How will this feature work?

1. Loading money: To make offline payments, you must first load money into your UPI Lite wallet (internet access is required for this step).

2. Just 'touch': Subsequently, when making a payment at a shop or store, you simply need to touch your NFC-enabled phone against the POS machine.

3. No PIN required: The best part is that neither a UPI PIN nor an internet connection is required for this process.

4. How the payment completes: As soon as you touch the phone to the device, the POS machine will store the payment authorization from your wallet. Later, whenever the phone or the machine regains internet connectivity, the payment details will be transmitted to the bank, and the transaction will be finalized.

What will the limit be?
With security in mind, the maximum payment limit under this new offline system will be ₹2,000. Currently, the offline payment limit is ₹500, which is being raised to ₹2,000.

Who will benefit?
This feature will prove extremely helpful for people living in areas with poor network connectivity. Moreover, this feature will enable easy purchases even in places without internet connectivity, such as during flights or inside underground metro stations. Since many credit and debit card companies restrict card usage during flights, this small-value offline UPI payment option could prove to be an excellent alternative.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.