The National Payments Corporation of India is reportedly developing an offline UPI feature for Point-of-Sale terminals. This technology aims to solve payment failures caused by weak internet connectivity in crowded retail environments.
10 billion
Monthly UPI transactions
⏳ Time Machine
How today’s news fits into the bigger picture
2016
UPI launched in India
The National Payments Corporation of India introduced UPI, creating an instant, mobile-first payment system.
2022
UPI Lite introduced
NPCI launched an on-device wallet for small-value transactions, allowing limited offline payments under ₹200.
March 2024
UPI merchant transaction surge
Merchant transactions grew to dominate the network, highlighting the urgent need for robust checkout systems.
Today
NPCI begins developing offline UPI payment protocols for retail Point-of-Sale terminals.
What happens next?
A pilot testing phase for offline merchant payments will roll out in selected metro cities by December 2026.
The National Payments Corporation of India (NPCI) is actively developing a system to allow **offline UPI payments** directly at physical Point-of-Sale (PoS) merchant billing terminals. Currently, making a digital payment in basement supermarkets, crowded malls, or rural shops is a major hassle due to weak mobile networks. By using close-range wireless technology or offline cryptographic ledgers, this new solution will let you scan and pay without needing active internet. For India's digital economy, which processes over **10 billion transactions** monthly, this technology could unlock millions of micro-payments in dark connectivity zones, taking financial inclusion to the next level.
💭 If you're wondering…
The merchant's billing terminal stores a secure digital token of your payment. When the terminal connects to the internet, it sends this token to the banking network to settle the transaction and update your account balance.
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Official sources
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