National Payments Corporation of India (NPCI) has teamed up with a State Bank of India unit to launch a tool that turns NFC-enabled phones into merchant point-of-sale terminals.
RuPay SoftPoS will let merchants accept payments of up to INR 5000 (about $68) through a tap on their Android handsets.
NPCI says that the nominal cost to retailers means that RuPay SoftPoS will revolutionise the way micro and small merchants receive payments, bringing them into the digital age.
Praveena Rai, COO, NPCI, says: "It is our endeavour to ensure that merchants from various geographies of the nation are on boarded into the ecosystem in order to deepen the penetration of digital acceptance infrastructure in the country.
"It is our belief that this is a step in the right direction of financial inclusivity as RuPay SoftPoS can provide an impetus to the digital on-boarding of merchants across the length and breadth of the country."