NPCI lets Indian merchants accept RuPay domestic card payments on standard NFC phones

Merchants in India can now use a standard NFC mobile phone to accept contactless RuPay domestic card payments valued at up to 5,000 rupees (US$68).

National Payments Corporation of India (NPCI) logo

The RuPay POS solution enables merchants to turn their Android smartphones into POS terminals and accept tap-and-pay payments from RuPay cardholders via the PayNearby payments app.

Alongside the rollout, merchants will also be able to trial using their mobile phones to accept offline payments of up to 200 rupees (US$2.75) made using a RuPay National Common Mobility Card (NCMC) offline wallet.

RuPay POS is being launched by the National Payments Corporation of India (NPCI) RuPay card network in partnership with RBL Bank and payments technology provider PayNearby.

“RuPay PoS will provide cost-effective acceptance infrastructure to retailers at no additional capital cost,” the NPCI says.

“This unique phenomenon would be able to proliferate digital payment acceptance among millions of underserved and tech-shy Indian MSMEs.

“Merchants can convert their Android smartphone into a payment acceptance terminal by simply updating their PayNearby app.

“With RuPay PoS, nearby local stores even in the remotest areas will now be able to process contactless payments on their smartphone.”

“As a pilot, RuPay POS can also accept offline transaction of RuPay NCMC, thus ensuring easy acceptance infrastructure for both online and offline card payments,” the NPCI adds.

“Transactions of Rs 200 and below will not require online authorisation, making these transactions as quick and easy as exchanging cash.

“This serves the dual purpose of eliminating internet dependency for micro payment processing and at the same time ensuring [a] hassle-free shopping experience for customers.”

The move comes after the NPCI announced in December that it was to enable offline contactless POS payments for RuPay and RuPay NCMC cardholders.

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