Facts for Prelims (FFP)
Source: Business Standard
Context: The National Payments Corporation of India (NPCI) has initiated the deployment of ‘UPI Tap and Pay’ across digital payment providers.
- The UPI Tap and Pay feature is currently live on the BHIM app and Paytm for limited users.
Features of UPI tap and pay:
- It utilizes near-field communication (NFC) technology to capture a payee’s UPI ID or Virtual Payment Address (VPA), eliminating the need for a camera.
- The feature can only be accessed on phones or devices with NFC capability.
- Users need to locate the ‘Tap & Pay’ button on their UPI app, and the transaction is completed by tapping the device on the UPI Smart Tag/Smart QR.
- Transactions up to ₹500 are processed through UPI LITE, while those exceeding ₹500 require a UPI PIN.
About Near-field communication (NFC) is a short-range wireless technology that allows two devices to communicate when they are within 4 centimetres of each other. NFC uses magnetic field induction to enable communication.
