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The National Payments Corporation of India (NPCI) is working on an internet of things (IoT) version of the Unified Payments Interface (UPI) which will allow users to make digital payments via smart devices like smart applicances, wearables, connected cars, among others.

Citing sources, Business Standard reported that with this upgrade, refrigerators, washing machines and smartwatches will be able to initiate UPI payments without the need to open any app on phone.

The initiative is part of the NPCI’s 2025 innovation pipeline and is planned to be unveiled at this year’s Global Fintech Fest, scheduled in October, subject to pending approvals.

The onboarding process for the new feature may include a one-time password and a separate UPI ID will be created for the same. The IoT-ready feature will work for autopay payments to cover recurring expenses, especially used for subscription.

The UPI Circle, which allows users to delegate payments, will likely be leveraged for the new offering. Launched during the Global Fintech Fest last year, UPI Circle allows customers to link with trusted secondary users on the UPI app for either partial or full delegation of payments.

The latest feature is part of the NPCI’s innovation stable for the digital payments system as it aims to grow UPI further. Over the years, the Global Fintech Fest has become a platform for the payments body to showcase its innovations, especially pertaining to UPI, to the fintech world. The October event will be the sixth edition of the Global Fintech Fest.

While UPI Circle was launched last year, the NPCI showcased conversational payments, NFC-based offline payment offerings, UPI Tap & Pay, and credit line on UPI at the Global Fintech Fest in 2023.

The NPCI operates a number of payment systems, but UPI is arguably the most successful one. The real-time payment system has also gained global popularity. In June, the number of UPI transactions stood at 18.40 Bn, amounting to INR 24.04 Lakh Cr.

The NPCI’s international arm has also signed agreements with multiple countries because of which UPI payments are now accepted in France, the UAE, Bhutan, Nepal, Singapore, among others.

Earlier this year, finance minister Nirmala Sitharaman said that the NPCI needs to target 1 Bn UPI transactions per day over the next 2-3 years.

Meanwhile, on the financial front, NPCI reported a 42% increase in its net profit to INR 1,552 Cr in FY25 from INR 1,095 Cr in the previous year. Operating revenue rose 19% to INR 3,270 Cr during the year under review from INR 2,749 Cr in FY24.

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