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IoT-Enabled UPI: NPCI Plan for Smart Device Payments

8 July 20251 min read
BANKING & FINANCEIoT-Enabled UPI:NPCI Plan forSmart DevicePayments8 July 2025safalsetu.com

Why in the news

NPCI’s 2025 roadmap includes a UPI version for connected gadgets, letting them settle everyday payments without a person tapping a phone.

Key facts

  • Devices: smartwatches, connected cars, refrigerators, washing machines, smart TVs.
  • Uses: parking, metro fares, subscription renewals.
ElementDetail
IdentityUnique virtual payment address per device
DelegationUPI Circle and AutoPay; mandates and limits set per device
SecurityPre-approved mandates, OTPs or device authentication

Significance

  • Supports the 10x growth goal for UPI.
  • Gives consumers contactless payments and strengthens embedded finance and inclusion.

About IoT

The Internet of Things links sensor-equipped physical objects so they swap data and automate tasks online.

Exam angle

  • Developer of UPI: NPCI.
  • Terms: UPI Circle, AutoPay, IoT.

Test yourself

1. Which organisation is building an IoT-ready version of UPI for smart devices?

NPCI is developing the IoT-ready UPI as part of its 2025 roadmap.

2. In IoT-enabled UPI, what will each smart device be assigned?

Each device gets a virtual payment address linked to the user's main UPI account.

3. NPCI's IoT UPI plan supports its goal of how much growth in UPI use?

It supports NPCI's goal of 10x expansion.