UPI Payments Now Possible Without a Mobile: Use Other Smart Devices

UPI, or Unified Payments Interface, is a popular digital payment system in India. Now, UPI is getting a major update. NPCI is developing a system that will allow online payments to be initiated for IoT devices such as smart TVs, refrigerators, washing machines, and cars, in addition to mobile phones, Business Standard reports.

IoT payments are automatic payment transactions that work based on data collected and analyzed by devices. If this feature is enabled, parking fees can be paid directly from an IoT device in a car. Similarly, metro tickets can be processed through a wearable watch or a Ring device. Alternatively, subscriptions to multiple OTTs can be renewed through an IoT-enabled smart TV. This means that IoT devices can automatically initiate and complete payments within the UPI framework. There will be no need to rely on third-party UPI apps for payments.

How does it work?

Currently, all UPI transactions require a primary mobile phone to make a transaction. However, with the new system, devices will be allowed to process payments using a unique Virtual Payment Address (VPA) linked to a user’s primary UPI ID. The devices will be enabled to make payments themselves through NPCI’s UPI Circle. It allows payments within a pre-defined limit. It is a pre-authorized transaction system where money is automatically withdrawn from a user’s bank account for expenses such as monthly subscriptions, utility bills or loan repayments.

UPI Circle is a feature introduced by NPCI in 2024 to allow secondary users to make payments without having a UPI-linked bank account. It enables secondary users to make transactions with minimal interaction. The primary user is the UPI account holder who can authorize payments initiated by the secondary user. These transactions will also be AI-powered conversational.

In short, UPI will now be available not only on smartphones but also on other devices like refrigerators, washing machines, cars, smartwatches, and smart TVs. This means that a smart refrigerator will no longer be a mere fantasy in the future, ordering groceries for the home and paying for them via UPI.

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