Soon, Your Smart Devices Could Make UPI Payments for You

The Unified Payments Interface (UPI) is getting ready for a major upgrade. The National Payments Corporation of India (NPCI) is building a new version of UPI that will allow payments to be made through smart devices, not just mobile phones.

What’s Changing in UPI?

Currently, UPI payments can only be made through a mobile phone. But the upcoming version will allow gadgets like refrigerators, smartwatches, washing machines, TVs, and even connected cars to make payments automatically. This new version of UPI is being designed to work with the Internet of Things (IoT).

Imagine your car paying for parking by itself, or your smart TV renewing a subscription without you needing to do anything. That’s what the NPCI wants to make possible.

How Will It Work?

Each smart device will be linked to a separate UPI ID, which is connected to your main UPI account. Users will give a one-time permission (mandate) to allow these devices to make payments.

The feature will also use something called UPI Circle, where users can set limits and allow delegated payments — either to other people or to smart gadgets. These devices will follow the payment rules set by the user, such as maximum spending amount or approved services.

Security and Testing

The NPCI says that the system will be safe and secure, using one-time passwords (OTP) for setting up and testing. Once a mandate is given, the devices can process recurring payments automatically using UPI AutoPay, without needing fresh approval each time.

When Will It Launch?

NPCI plans to introduce this IoT-ready UPI system at the 2025 Global Fintech Fest, depending on regulatory approvals.

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Conclusion

As UPI crossed 18.4 billion transactions in June 2025, this new feature is part of NPCI’s plan to make UPI even bigger. By adding smart gadgets into the system, NPCI hopes to take digital payments to the next level — simple, seamless, and automated.

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