Table of Contents
Introduction
Imagine paying for your groceries directly through your refrigerator or paying your washing machine’s maintenance fee automatically without opening any app. This is soon going to be reality as NPCI (National Payments Corporation of India) is working on an IoT version of UPI payments to integrate digital payments seamlessly with smart devices.
What is NPCI’s IoT Version of UPI?
The IoT-ready UPI feature is part of NPCI’s 2025 innovation pipeline and is expected to be unveiled at the Global Fintech Fest in October this year. This upgrade will allow digital payments through:
Refrigerators
Washing machines
Smartwatches
Connected cars
Other smart IoT devices
Users will no longer need to open their UPI apps on phones to initiate payments; smart devices themselves will handle transactions autonomously.
How Will UPI Payments Work on Smart Devices?
According to reports, the onboarding process for these IoT UPI payments will include a one-time password (OTP) verification, and a separate UPI ID will be created specifically for each device. The feature will particularly support autopay payments to cover recurring expenses such as:
Subscriptions
Maintenance charges
Consumable refills (e.g., groceries ordered via smart fridges)
This seamless payment system will make smart homes even smarter by automating daily payment tasks efficiently.
Key Benefits of IoT-Ready UPI Payments
Convenience: No manual intervention needed for regular payments.
Time Saving: Devices can handle payments instantly.
Enhanced Automation: Supports the smart ecosystem vision.
Secure Payments: OTP-based onboarding ensures security and user control.
Better Financial Management: Recurring expenses handled without missing deadlines.
What is UPI Circles and Its Role?
UPI Circles, launched last year at the Global Fintech Fest, allows users to delegate payments to trusted secondary users in their circle for partial or full payment control. This feature is likely to integrate with IoT-based UPI payments to enable:
Family-wide payment management
Team-based payments in offices
Shared smart devices payments
Other Upcoming NPCI Innovations
Alongside IoT-ready UPI, NPCI plans to showcase several UPI-related innovations this year, including:
Conversational payments
NFC-based offline payments
UPI Tap & Pay
Credit Line on UPI
These features reflect NPCI’s commitment to evolving India’s digital payment landscape with global standards.
NPCI’s Financial Performance
NPCI has shown impressive growth with:
Net profit rising by 42% to Rs 1,552 crore in FY25 from Rs 1,095 crore in FY24.
Operating revenue increasing by 19% to Rs 3,270 crore from Rs 2,749 crore last year.
This financial strength backs its continuous innovation efforts.
Global Expansion of UPI Payments
UPI is no longer just an Indian phenomenon. Its acceptance has expanded to:
France
UAE
Bhutan
Nepal
Singapore
And several other countries
Earlier this year, Finance Minister Nirmala Sitharaman urged NPCI to aim for 1 billion UPI transactions per day within the next 2-3 years, indicating strong government support for UPI’s growth.
Conclusion
NPCI’s upcoming IoT version of UPI is set to redefine digital payments in India, making smart devices truly “smart” by handling payments autonomously. From refrigerators ordering and paying for milk to your smartwatch paying gym subscription fees, the future of payments is both automated and secure.
FAQs
1. What is IoT in UPI payments?
It refers to using Internet of Things-enabled devices to initiate UPI transactions without using a smartphone app.
2. When will NPCI launch the IoT UPI feature?
It is planned to be unveiled at the Global Fintech Fest in October this year, subject to approvals.
3. How will payments be authorized on smart devices?
Through an initial one-time password verification, after which a dedicated UPI ID will be used for secure payments.
4. Which devices will support IoT UPI payments?
Smart refrigerators, washing machines, smartwatches, connected cars, and other IoT-enabled devices.
5. What are UPI Circles?
A feature allowing users to delegate payment rights to trusted family members or colleagues for efficient shared payment management.
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