SUMMARY
PhonePe and Visa have partnered to launch tap-to-pay, cross-border QR payments, and smartphone-based card acceptance for merchants.
The partnership will expand PhonePe’s card payment offerings beyond online checkout, allowing Indian users to pay at stores and across overseas markets without carrying a physical card
Tap to Pay is being rolled out in phases for Android users, while Cross Border Scan to Pay will become available across 14 international markets
Walmart-backed fintech major PhonePe
has partnered with global card network Visa to launch three cardless payment solutions for consumers and merchants in India.
The partnership will introduce Tap to Pay for domestic in-store transactions, Cross Border Scan to Pay for payments overseas, and Smart Accept, which will enable small merchants to accept contactless card payments directly on their smartphones.
The partnership was unveiled at the Global Fintech Fest (GFF) 2026 in Mumbai.
“By unifying online tokenisation, Tap to Pay, and Cross-Border QR payments alongside Smart Accept for merchants, we are removing friction across the entire payments value chain. Through this partnership, we are not just digitising cards, we are establishing a new standard for borderless and cardless commerce for Indian consumers and micro-merchants alike,” PhonePe cofounder and CPTO Rahul Chari said.
PhonePe, Visa’s New Payment Features
The three new solutions, along with online card tokenisation, will cover both consumer and merchant payments:
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Tap to Pay: Android users can tokenise their Visa cards on PhonePe and make contactless payments by tapping their smartphones against compatible POS machines. The feature will roll out in phases starting September 9 and can work in low-connectivity environments.
Cross Border Scan to Pay: PhonePe users will be able to scan Visa-supported QR codes across 14 international markets, including Singapore, Malaysia, Thailand, Vietnam, Indonesia, Sri Lanka, Japan, China and South Korea. The feature is expected to roll out to users soon.
Smart Accept: Small merchants can accept card payments directly through their smartphones, removing the need for a separate POS machine. Customers can tap physical cards or tokenised mobile wallets against the merchant’s device.
Transactions made through Smart Accept will be integrated with PhonePe’s existing merchant QR dashboard for daily reconciliation and dispute resolution. However, PhonePe did not disclose when the service would become available to merchants.
Notably, PhonePe launched a similar Tap & Pay feature for Mastercard cardholders last year.
The announcement came a day after Prime Minister Narendra Modi called for connecting UPI with the payment systems of more countries, particularly those with large Indian diasporas and strong trade ties with India.
While PhonePe and Visa’s cross-border offering will run on Visa’s card network rather than UPI, it similarly seeks to make overseas payments easier for Indian users. UPI is currently operational across 11 countries.
The latest offerings build on PhonePe’s device-tokenisation solution launched in February 2025. The solution allows users to store tokenised credit and debit cards on their devices and use them for bill payments, recharges, travel bookings, and transactions at merchants integrated with PhonePe’s payment gateway.
It is pertinent to mention that PhonePe is also preparing to go public. The company filed its UDRHP with SEBI in January for an OFS-only IPO, under which Walmart, Tiger Global, Microsoft, and General Atlantic plan to pare their stakes.
However, it paused its IPO plans in March amid geopolitical tensions in West Asia and volatility in global equity markets.
On the financial front, PhonePe’s operating revenue rose 11.5% to ₹7,920.5 Cr in FY26 from ₹7,105 Cr in the previous fiscal year. However, its net loss widened 62% to ₹2,792 Cr from ₹1,727.4 Cr in FY25.
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