PhonePe and Mastercard have announced a collaboration to introduce tap-and-pay functionality for Mastercard cardholders in India, enabling secure contactless payments directly through NFC-enabled Android smartphones.
With this feature, users can make in-store payments by simply tapping their smartphones on payment terminals via the PhonePe app, while also enjoying tokenised e-commerce transactions for safer online shopping.
The partnership combines Mastercard’s expertise in tokenisation with PhonePe’s extensive base of 618 million registered users, aiming to expand digital payment adoption across India and beyond.
Mastercard cardholders in the country can now save their credit, debit, or prepaid cards on the PhonePe app and benefit from faster, safer, and frictionless checkout experiences. Each transaction is protected through device-specific tokenisation, significantly reducing fraud risks and ensuring credentials cannot be misused.
Commenting on the launch, Deep Agrawal, Head of Payments, PhonePe, said the collaboration reflects a growing consumer preference for contactless transactions.
“With increased penetration of NFC-enabled smartphones and rising usage of Tap & Pay, this functionality brings convenience and security together, offering seamless payments at physical stores and safer online transactions, all within the familiar PhonePe app,” he said.
Ravi Datla, Senior Vice President, Products & Solutions, South Asia, Mastercard, added that the initiative aligns with Mastercard’s focus on scaling innovation and empowering cardholders.
“This collaboration broadens the reach of digital payments by expanding device-based tokenisation, enabling Mastercard cardholders to tap and pay at merchant outlets in India and abroad. India continues to set the pace in digital commerce globally, and we are proud to support this momentum with solutions that make transactions smarter and safer,” he noted.
The new feature is being rolled out in phases and allows Mastercard cardholders to securely add their cards on the PhonePe app through a simple one-time setup. Once tokenised, users can pay by selecting their card and tapping their smartphones against any NFC-enabled PoS machine or by completing tokenised online transactions, reinforcing India’s move towards a more secure, convenient, and digitally driven economy.
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