Revolutionizing Payments: UPI’s Exciting Upgrade for Smart Devices
Get ready for a game-changing evolution in digital payments! The National Payments Corporation of India (NPCI) is set to launch an enhanced version of UPI, enabling smart devices to execute payments autonomously, eliminating the need for a mobile phone. This innovative shift promises to extend the reach of digital payments far beyond traditional smartphones.
Imagine your gadgets—smartwatches, refrigerators, washing machines, TVs, and even connected cars—performing transactions seamlessly, all with your consent. This upcoming system is designed to empower these devices to handle payments automatically, enhancing convenience in our daily lives.
Currently, UPI transactions occur through mobile apps, where users scan QR codes or send money using UPI IDs. The new version aims to seamlessly integrate UPI into the Internet of Things (IoT). Picture your car effortlessly paying for parking or your smart TV managing a subscription renewal. Each smart device will be assigned its own unique UPI ID linked to your primary account, allowing you to grant one-time permissions for payments within your defined limits.
To facilitate this groundbreaking functionality, NPCI will introduce two key features: UPI AutoPay and UPI Circle. UPI AutoPay, already popular for recurring payments like subscriptions, will empower smart devices to perform transactions without requiring your approval each time.
Meanwhile, UPI Circle will give you the reins to control your finances. You’ll be able to set specific spending limits for each device, restrict transaction types, or even permit trusted individuals in your circle to access funds under strict guidelines. For instance, you might configure your smartwatch to recharge your metro card once a month or limit your car’s parking expenses to ₹500 weekly.
According to reports, this innovative payment system is set to be unveiled at the Global Fintech Fest 2025, pending regulatory approvals. NPCI is currently conducting internal tests to ensure a smooth and secure rollout.
In June 2025 alone, UPI recorded an astounding 18.4 billion transactions. As smart gadgets and connected living gain momentum, this new feature is poised to spark a fresh wave of growth in the digital payment landscape. NPCI’s vision is to make payments not only easy but virtually invisible. If successful, India could lead the way in large-scale IoT-based payments, marking a significant step toward making everyday transactions more seamless, intelligent, and harmonized with our lifestyles.