Soon, you may be able to make UPI payments without an internet connection—even while flying or travelling through underground tunnels. According to a recent report, a new Unified Payments Interface (UPI) feature is being developed that will allow users to make payments to another device or a merchant's point-of-sale (PoS) terminal without requiring internet access.
According to Business Standard, users will be able to make payments at offline merchant terminals using near-field communication (NFC), a short-range wireless technology that is faster and more secure than Bluetooth for close-range transactions. The report added that such payments are likely to be capped at Rs 2,000.
To use the feature, customers will first need to load funds into an on-device digital wallet called UPI Lite while connected to the internet. Once the balance is added, they will be able to make payments at locations without internet connectivity or through offline PoS terminals without entering a UPI PIN.
To support the rollout, the National Payments Corporation of India (NPCI), which operates the UPI platform, is expected to begin certifying PoS device manufacturers this year to enable offline NFC-based UPI payments.
OFFLINE DIGITAL PAYMENTS AREN'T ENTIRELY NEW
Offline UPI payments are not a new concept, although existing solutions have certain limitations. Services such as *99# and UPI 123Pay already allow users to transfer money without mobile data by using either a USSD code or a voice call.
The proposed NFC-based feature, however, differs significantly. Current offline methods still require some form of network connectivity—either a GSM signal for USSD transactions or a phone connection for voice-based payments. The new NFC-enabled system is expected to work without any mobile network, relying solely on short-range wireless communication between compatible devices.
The *99# service works on all GSM-enabled mobile phones, including feature phones and smartphones, making it accessible even to users without internet-enabled devices. Operating through USSD, it does not require mobile data and supports 13 languages, including Hindi and English, across 83 banks. Transactions through this service are limited to Rs 5,000. Users simply dial *99#, select their bank, choose the "Send Money" option, enter the recipient's UPI ID or mobile number, specify the amount and authorise the transaction using their UPI PIN.
For feature phone users, UPI 123Pay offers a voice-based alternative. Customers call a designated number, select one of 12 supported languages and follow the automated prompts to enter the recipient's details and payment amount before confirming the transaction with their UPI PIN. Merchant payments through UPI 123Pay are capped at Rs 5,000 per transaction, while the daily transaction limit is Rs 1 lakh.
Both services are available 24x7, including on public holidays, and have played an important role in expanding digital payments to users with limited internet access or those without smartphones.
The upcoming NFC-based UPI feature builds on this concept by eliminating the need for any network connection at the time of payment, making offline digital transactions more seamless and convenient.
