PhonePe, Mastercard launch Tap & Pay feature for contactless payments in India

The feature enables users to tap their NFC-enabled Android smartphones at in-store payment terminals using the PhonePe app.​

PhonePe and Mastercard have partnered to launch a new Tap & Pay feature that allows Mastercard cardholders to make contactless payments through their smartphones in India and internationally.

The feature enables users to tap their NFC-enabled Android smartphones at in-store payment terminals using the PhonePe app. Cardholders can save their Mastercard credit, debit, or prepaid cards issued in India on their devices and enjoy secure, frictionless payments both offline and online.

This collaboration combines Mastercard’s tokenisation expertise with PhonePe’s 618 million-strong user base, expanding digital payment access across India and abroad.

The device-based tokenisation ensures that each transaction is tied to the user’s smartphone, providing enhanced security and preventing fraud.

Key features of the Tap & Pay launch include:

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• Secure in-store payments: Contactless payments at NFC-enabled terminals in India and abroad.
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• Safer online shopping: Tokenized transactions tied to the device make card data unusable elsewhere.
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• Frictionless experience: Users save their card once and enjoy fast, secure checkouts every time.
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Deep Agrawal, Head of Payments at PhonePe, said, “With rising NFC smartphone adoption and growing consumer preference for Tap & Pay, this feature combines convenience and security. It enables seamless contactless payments at stores and safer online transactions within the PhonePe app.”

Ravi Datla, Senior Vice President, Products & Solutions, South Asia, Mastercard, added, “This collaboration marks a key step in broadening digital payments through device-based tokenisation."

Users can add their Mastercard cards on the PhonePe app through an one-time process. Once tokenised, payments can be made by selecting the card and tapping the smartphone on any PoS machine or shopping online.

The Tap & Pay feature will roll out in phases for Mastercard cardholders on the PhonePe app.