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Consider the following statements regarding UPI tap and pay.
  1. It utilizes near-field communication (NFC) technologyto capture a payee’s UPI ID or Virtual Payment Address (VPA).
  2. Transactions up to ₹5000 can be done without any pin number using UPI tap and pay.
  3. Near-field communication uses a phone’s camera to enable communication.
How many of the above statements is/are correct?
  • a)
    Only one 
  • b)
    Only two 
  • c)
    All three 
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Consider the following statements regarding UPI tap and pay. It utiliz...
Only Statement 1 is correct.
 The National Payments Corporation of India (NPCI) has initiated the deployment of ‘UPI Tap and Pay’ across digital payment providers.
Features of UPI tap and pay:
  • It utilizes near-field communication (NFC) technology to capture a payee’s UPI ID or Virtual Payment Address (VPA), eliminating the need for a camera.
  • The feature can only be accessed on phones or devices with NFC capability.
  • Users need to locate the ‘Tap & Pay’ button on their UPI app, and the transaction is completed by tapping the device on the UPI Smart Tag/Smart QR.
  • Transactions up to ₹500 are processed through UPI LITE, while those exceeding ₹500 require a UPI PIN.
Near-field communication (NFC) is a short-range wireless technology that allows two devices to communicate when they are within 4 centimetres of each other. NFC uses magnetic field induction to enable communication.
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Consider the following statements regarding UPI tap and pay. It utilizes near-field communication (NFC) technologyto capture a payee’s UPI ID or Virtual Payment Address (VPA). Transactions up to 5000 can be done without any pin number using UPI tap and pay. Near-field communication uses a phone’s camera to enable communication.How many of the above statements is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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