Google Pay begins testing NFC-based payments feature via credit and debit cards

Digital payments platform Google Pay has started testing a new feature which allows contactless payments via credit and debit cards using near-field communication (NFC) technology.

To enable the tap and pay feature using a phone, users will have to do a one-time set up by entering their card details followed by an OTP-based verification process. After the registration, the feature can be used to make payments at NFC-enabled terminals where Google Pay is accepted and make three kinds of payments — tap and pay (NFC), Bharat QR, and online payments. 

Android Police reported the development first.

According to the Google support page, Only Axis Visa cards and SBI Visa credit cards can be added to payment methods. International cards aren’t supported by Google Pay at this time. While the NFC-based payments facility is available for select users in the country, more card issuers are expected to join the latest feature.

Last year, Google had announced tokenized cards to secure online payments via Google Pay by using digital tokens instead of showing the actual credit or debit card number. While the tokenized card feature has not been able to make an impact, the tap and pay method could become the preferred payment option besides UPI for Google Pay users.

Meanwhile, the National Payments Corporation of India (NPCI) is reportedly planning to launch a feature that will allow consumers to make payments to a point-of-sale (PoS) device from their preferred UPI app. The umbrella entity for retail payments in India is in talks with payment aggregators to enable the technology for PoS devices. 

The move will expand UPI’s horizon multi-fold in the peer-to-merchant segment. It is worth noting that Google Pay controls the highest market share in the UPI ecosystem in India which also include PhonePe, Paytm, Amazon Pay and government-promoted BHIM.