PhonePe Launches Visa Tokenisation and Tap to Pay

PhonePe and Visa announced three payment services at the Global Fintech Fest 2026 in Mumbai on 9 September 2026. The services include Tap to Pay, Cross Border Scan to Pay, and Smart Accept, and PhonePe became the first Indian application to support the full suite of three core Visa capabilities for consumers.

Visa Tokenisation and Contactless Payments

Visa Device Tokenisation is a payment security system that replaces card details with a token for use on digital devices. PhonePe began a phased rollout of Tap to Pay for Android users, allowing Visa card tokenisation inside the app for contactless payments at point-of-sale terminals.

Tap to Pay works in low-connectivity areas because the transaction uses tokenised card credentials stored on the device. The feature is linked to the earlier Visa Device Tokenisation system introduced on the PhonePe platform in February 2025.

Cross Border Scan to Pay and Merchant Acceptance

Cross Border Scan to Pay is an upcoming feature for Indian travellers who use Visa-supported QR codes in 14 international markets. The markets named for the service include Japan, South Korea, Singapore, Thailand, and Vietnam.

Smart Accept is a merchant solution for micro-merchants and small business owners. It allows card payments to be accepted on smartphones without a physical point-of-sale terminal.

PhonePe Network and Digital Payments Context

PhonePe stated that it had more than 71.5 crore registered users and over 5 crore merchants as of July 2026. The platform is part of India’s digital payments ecosystem, which uses mobile applications, QR codes, card tokenisation, and point-of-sale systems.

Important Facts for Exams

• Visa Device Tokenisation is used to replace sensitive card data with a token for digital transactions.
• Point-of-sale terminals are used for card payments at physical merchant locations.
• QR code-based payments are common in India’s Unified Payments Interface ecosystem.
• Micro-merchants are small sellers that often use low-cost digital payment tools.

Digital Payments in India

India uses multiple retail payment channels, including UPI, card networks, QR codes, and mobile wallets. Visa is a global card payment network, and PhonePe is one of India’s large digital payments applications.