New Delhi: PhonePe and Mastercard have joined hands to roll out a Tap & Pay feature in India, allowing users to make contactless transactions through their smartphones. The initiative reflects the growing push toward secure and seamless digital payments in the country.
The feature enables Mastercard credit, debit, and prepaid cardholders in India to link their cards on the PhonePe app and make payments by tapping their NFC-enabled Android devices at in-store terminals. Once tokenized, the card details are tied to the user’s device, ensuring that sensitive information cannot be reused elsewhere. This device-based tokenization approach aims to reduce fraud and strengthen security for both offline and online transactions.
According to industry observers, the adoption of NFC-enabled smartphones and consumer demand for contactless payments has been steadily increasing in India. The collaboration between Mastercard’s global tokenisation expertise and PhonePe’s 618 million-strong user base seeks to capitalise on this trend. By enabling payments not only within India but also abroad, the feature positions itself as part of a broader shift in how Indians transact across borders.
PhonePe said users can add their Mastercard cards through a one-time setup on the app and then make payments by selecting the card and tapping the smartphone on compatible PoS machines. The feature is being rolled out in phases and will be available to Mastercard cardholders using PhonePe in the coming months.
Industry analysts note that such partnerships underline how fintech players and card networks are working together to accelerate digital payment adoption in India, while also aligning with global standards of security and convenience.
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