UPI heads towards a code-less era, a decade after its debut

A decade after the launch of the Unified Payments Interface (UPI), payment companies are moving towards a new phase of digital payments that seeks to make transactions faster and do away with one-time passwords (OTPs) and QR codes.

The Reserve Bank of India (RBI) Governor last week launched a ‘tap and pay’ facility for UPI transactions in partnership with the National Payments Corporation of India (NPCI), enabling payments through RuPay credit cards without the need for OTPs or QR codes. The facility was unveiled at the Global Fintech Fest 2026 in Mumbai.

The new feature uses the point-of-sale (PoS) terminal’s internet connectivity, allowing a transaction to be completed even when the customer’s mobile device does not have internet access. NPCI said the facility is currently available for transactions of up to ₹5,000. For higher-value transactions, customers will have to enter their PIN.