The new Google Pay feature will cut down on the time it takes to scan a QR code or enter a UPI-linked telephone number.
Google Pay partnered with Pine Labs on Wednesday to announce the launch of Tap to Pay for UPI in India. Users will be able to make UPI payments at neighbouring shops by touching their phones directly on a compatible Point-of-Sale (PoS) terminal. Reliance Retail was the first to test the new service, and it will now be offered at other prominent retailers such as Future Retail and Starbucks. UPI users with NFC-enabled Android smartphones will be able to use it. Tap-to-pay transactions, on the other hand, necessitate the use of a Pine Labs Android PoS terminal.
Users can utilise the Tap to Pay for UPI feature to initiate transactions by touching their phone on a PoS terminal and then authenticating the payment with their UPI PIN. It cuts down on the time it takes to scan a QR code or enter a UPI-linked mobile number.
Make sure your device's NFC is turned on before starting the new experience. Because Apple does not enable NFC-based payments through services other than Apple Pay, the capability is similarly confined to Android phones.
In a prepared statement, Sajith Sivanandan, Business Head of Google Pay and Next Billion User initiatives, Google APAC, said, "Tap to Pay for UPI has profound implications for high-traffic retail outlets, with queue management hassles posed to be greatly reduced, and taking digital payments at POS well beyond cards."
Google Pay already supports NFC-based tap-to-pay in a number of countries, including the United States. The new experience, on the other hand, is unique in that it utilises the government's UPI.
"We believe this would boost UPI acceptability in India and appeal to consumers, particularly the millennial population, who have a preference for contactless and digital payments," said Kush Mehra, Pine Labs' Chief Business Officer.
Paytm and Samsung, for example, have long offered NFC-based tap-to-pay capability on their mobile wallets for Android customers in India. However, the previous experience works with credit cards. Google Pay's approach could help it break into the mainstream and become more popular among Indian consumers.
Google Pay is one of the most popular apps in India for making UPI payments. According to the National Payments Corporation of India (NPCI) figures, the app remained the second largest player in February, handling 152.40 lakh crore transactions totaling Rs. 2.91 crore. With 212.02 crore transactions worth Rs. 4.07 lakh crore, PhonePe maintained its lead in the UPI apps market.
According to NPCI data, UPI transactions in the country fell to 452.74 crore worth Rs. 8.26 lakh crore in February from 461 crore worth Rs. 8.31 crore in January.
The move to enable Tap to Pay for UPI capability, according to NPCI Chief of Corporate and Fintech Relationships and Key Initiatives Nalin Bansal, will be a step forward in transforming the way real-time digital transactions are handled, particularly in retail establishments.
"As UPI use grows, this first-of-its-kind capabilities with Google Pay and Pine Labs will enhance the consumer experience and pave the path for a smarter and faster payment experience," he said.
