Archive · 11 Sep 2026
UPI’s New Tap-and-Pay and MyUPI Shift Payment Experience
UPI has introduced two new tools called Tap & Pay and MyUPI.
Tap & Pay lets people unlock their phones and tap them on a payment machine.
It can work even when the phone does not have mobile internet.
MyUPI is an AI helper for payment questions and complaints.
It is built using NPCI’s FiMI language model.
These tools are meant to make payments easier for customers.
However, merchants may still have to manage failed payments, refunds and transaction records.
Experts say future payment services should reduce effort while keeping payments clear, trusted and under customer control.
UPI Tap & Pay lets users pay by tapping NFC-enabled smartphones on NFC-enabled POS terminals.
Tap & Pay can work without mobile internet on the user’s device through merchant-terminal connectivity.
MyUPI uses NPCI’s FiMI small language model to provide AI-powered payment support.
Industry observers say new interfaces may shift complexity toward merchants handling reconciliation, failures and refunds.
Wise says UPI’s next opportunity is extending simple, real-time payments across borders while preserving trust and control.
- Who
- The National Payments Corporation of India’s UPI ecosystem, fintechs, merchants and users; comments were provided by Kunal Jhunjhunwala and Taneia Bhardwaj.
- What
- UPI launched Tap & Pay and MyUPI, adding NFC payments and AI-powered customer support.
- When
- The developments were announced at the Global Fintech Fest 2026 and reported on September 11, 2026.
- Where
- At the Global Fintech Fest 2026; the article also discusses potential cross-border use of UPI.
- Why
- To make payment journeys more seamless, reduce support friction and potentially extend UPI’s simplicity across borders.
Seamless Payment Innovation
Merchant Complexity and Control
New payment interfaces
Seamless Payment Innovation
Tap & Pay and MyUPI can make payments and support more seamless for users.
Merchant Complexity and Control
Each new interface can move complexity to merchants, who still need to manage reconciliation, failed payments and customer concerns.
AI customer support
Seamless Payment Innovation
AI could absorb a significant share of payment-support work and help users resolve issues.
Merchant Complexity and Control
Kunal Jhunjhunwala said AI will be most useful when integrated into the payment flow rather than offered as a standalone chatbot.
International expansion
Seamless Payment Innovation
UPI’s simple, real-time experience could be extended across borders, according to Wise’s Taneia Bhardwaj.
Merchant Complexity and Control
Cross-border payments would require fintechs and merchants to support more payment rails without adding friction to checkout or reconciliation, while retaining trust, transparency and customer control.
- Tap & Pay
- Users unlock an NFC-enabled smartphone and tap it on an NFC-enabled point-of-sale terminal.
- Connectivity
- The feature can work without mobile internet on the user’s device by using the merchant terminal’s connectivity.
- MyUPI
- An AI-powered customer-support layer for transaction status, complaints and other payment-related issues.
- Underlying model
- MyUPI is built on NPCI’s small language model, FiMI.
- Merchant impact
- Merchants may need to reconcile transactions, identify failed payments and address refund concerns.
- Cross-border opportunity
- Wise’s Taneia Bhardwaj said the next opportunity is taking UPI’s simple, real-time experience across borders.