UPI Offline Payments: NPCI Tests New Feature to Enable Payments Without Internet

UPI payments have transformed digital transactions in India, but a lack of mobile network connectivity can still prevent users from completing payments. To address this challenge, the National Payments Corporation of India (NPCI) is testing a new offline UPI payment feature that could allow users to make payments even without an active internet connection.

According to NPCI, the new feature will enable users to make payments to merchants by simply tapping their smartphones on compatible Point-of-Sale (PoS) terminals. The technology uses proximity-based communication between devices, eliminating the need for an internet connection during the transaction.

Useful in Areas Without Network Connectivity

The offline payment facility could be particularly useful in locations with poor or no mobile network coverage. Potential use cases include flights, underground metro stations, rural areas and other places where internet connectivity is unavailable.

NPCI is expected to begin certifying compatible PoS terminals from major manufacturers in 2026. This could help merchants gradually adopt the technology and make offline UPI payments more widely available.

How Will Offline UPI Payments Work?

The new facility is being developed around UPI Lite, which allows users to maintain a small balance specifically for low-value transactions.

Before going offline, users will need to add funds to their UPI Lite balance while they are connected to the internet. Once the balance has been loaded, users can make eligible payments by tapping their NFC-enabled smartphone against a compatible payment terminal.

The transaction can be completed without an active internet connection and without entering a UPI PIN, making the process faster and more convenient for low-value payments.

A Major Expansion for UPI

If successfully introduced on a wider scale, offline UPI payments could significantly expand the reach of India`s real-time payment ecosystem. The feature could be especially beneficial for users who frequently travel or live in areas where reliable mobile and internet connectivity is not available.

The rollout will depend on NPCI`s testing, certification of compatible devices and wider adoption by banks, payment apps and merchants.