If you've ever been stuck with a failed UPI payment because there was no internet, that could soon change.According to a recent report, the National Payments Corporation of India (NPCI) is developing a functionality which will enable users to pay via UPI even in situations where there is no Internet or cellular network available.
This facility could turn out to be particularly helpful in regions where connectivity issues normally prevail, such as airplanes, metro train tunnels, and remote regions. Instead of waiting for a network to return, users may be able to complete a payment instantly.
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According to a Business Standard report, the upcoming feature will use near field communication (NFC) technology. This allows two compatible devices to communicate when they're held close to each other. In this case, your smartphone would connect directly to a merchant's point of sale (PoS) terminal or another NFC-enabled device, without relying on the internet.
The report adds that offline UPI transactions through this feature are expected to be capped at Rs. 2,000.
How it is expected to work
The process is expected to be fairly simple. Users will first need to add money to UPI Lite while they are connected to the internet. That amount will then be stored on the device.
Once the balance is available in UPI Lite, users can make payments even if there is no internet or mobile network. Since the money is already stored on the phone, small transactions are also expected to go through without asking for a UPI PIN, making the payment process much quicker.
Before the feature can be rolled out, NPCI is reportedly expected to certify PoS device manufacturers so their payment terminals can support offline NFC transactions. According to the report, this process could begin later this year.
Offline UPI already exists, but this is different
Making UPI payments without mobile data isn't a new idea. Services such as UPI 123Pay and *99# have been around for some time and already allow users to send money without an internet connection.
The catch, however, is that both still need a mobile network. The *99# service works through USSD codes over the GSM network, while UPI 123Pay uses voice calls. So even though they don't require internet, they won't work if there's no mobile signal.
That's where the new NFC-based feature stands out. If both your phone and the merchant's payment terminal support NFC, the payment could happen using only short-range wireless communication, with no internet and no mobile network required.
Existing offline options will continue to be useful
The *99# service works on both smartphones and basic feature phones. It supports multiple Indian languages across dozens of banks and allows transactions of up to Rs. 5,000.
Meanwhile, UPI 123Pay is designed mainly for feature phone users. Payments are made through a voice-guided call, where users simply follow audio instructions and confirm the transaction using their UPI PIN. Merchant payments are capped at Rs. 5,000, while the daily transaction limit goes up to Rs. 1,00,000.
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Both services have played an important role in helping people make digital payments in areas with poor internet connectivity.
This particular NFC-enabled feature is an extension of the same concept, but with a bit of extra added to it. In case everything goes according to plan, one will not require the Internet connection, nor any mobile network to complete the payment process through the UPI channel.