India is working on expanding the reach of Unified Payments Interface (UPI) by developing a system that would enable customers to make payments at merchant point-of-sale (PoS) terminals even when both the customer’s device and the terminal lack internet connectivity.
The proposed capability is expected to use near-field communication (NFC) technology and allow users to make offline payments of up to Rs 2,000 by tapping an NFC-enabled smartphone on a certified PoS terminal.
The National Payments Corporation of India (NPCI) is likely to begin certifying compatible PoS devices from leading terminal manufacturers in 2026.
The feature is aimed at improving digital payment access in areas where internet connectivity is weak or unavailable, such as aircraft cabins, underground transport networks and remote locations.
Under the proposed system, users would first add funds to their on-device UPI Lite wallet while connected to the internet.
They would then be able to use the available balance for offline transactions without entering a UPI PIN at the time of payment.
PoS terminal manufacturers would require certification from NPCI before enabling offline UPI payments. Once approved, companies can build applications and services on top of the certified system.
The offline-enabled PoS terminals would temporarily store payment authorisation details and transmit the information for verification once internet connectivity is restored.
Banks and third-party UPI application providers are also working on integrating the feature into their platforms.
The proposed system builds on NPCI’s earlier efforts to enable offline digital payments through UPI Lite X.
Launched in 2023, UPI Lite X was designed to support transactions without mobile connectivity, including NFC-based person-to-person and merchant payments.
However, the upcoming feature differs by extending offline payments to conventional merchant PoS terminals that receive certification from NPCI.
Existing UPI Lite X use cases were focused on NFC-enabled phones, QR codes, soundboxes and stickers.
NPCI has also introduced guidelines supporting NFC-enabled “Scan or Tap to Pay” features for merchant-facing payment infrastructure.
However, these guidelines did not announce the reported offline PoS certification programme.
The move is expected to strengthen India’s digital payments ecosystem by making UPI more accessible in environments where reliable internet connectivity remains a challenge, while reducing dependence on traditional card-based payment systems.
