UPI to launch NFC-based payments, to challenge Visa, Mastercard in India
The National Payments Corp. of India (NPCI), which operates the Unified Payments Interface (UPI), plans to add near-field communication (NFC) capabilities to its payments infrastructure and is in talks with payment aggregators to push the product across point-of-sale (PoS) devices.
The NFC capability will allow UPI to take on rival private payments networks, such as Visa and Mastercard, which have been expanding their contactless payments network based on NFC over the past year through tap-on-go payment systems, they said.
Card networks use the tap-on-go facility through NFC-enabled cards, which allow users to pay at PoS terminals, by tapping the card, instead of swiping it. Enabling NFC on UPI will also help it compete with NPCI-operated RuPay, which offers similar services.