PhonePe and Visa have introduced three new payment features designed to significantly expand card-based digital transactions through smartphones. Unveiled at the Global Fintech Fest 2026 on September 9, these services include contactless "tap-to-pay" for Android users, cross-border QR payments for international travel, and simplified card acceptance for small merchants without dedicated point-of-sale (POS) terminals.
Tap to Pay with Visa Cards
Under the first new offering, PhonePe users with eligible Visa cards will be able to tokenize their card details within the app. This feature enables them to use their Android smartphones to make contactless payments at compatible POS terminals. The tokenization process replaces sensitive physical card information with a digital token, enhancing security by reducing the need to share or store actual card numbers during transactions. This service began rolling out on September 9, promising functionality even in low-connectivity environments.
Overseas QR Payments for Indian Travelers
PhonePe is also rolling out cross-border QR payments, allowing Indian users to scan eligible Visa-supported QR codes while traveling internationally. This feature will be available in 14 international markets, including popular destinations like Singapore, Malaysia, Thailand, Vietnam, Indonesia, Sri Lanka, Japan, China, and South Korea. This initiative allows users to make payments through their linked Visa cards on the PhonePe app, offering a convenient alternative to physical cards abroad, subject to merchant compatibility.
Smart Accept: Card Payments for Small Merchants
The third feature, named Smart Accept, addresses the needs of small merchants who may not possess a traditional card POS terminal. With Smart Accept, a compatible smartphone can be transformed into a contactless card acceptance device. Customers can simply tap their physical contactless card or tokenized mobile wallet against the merchant’s smartphone to complete a transaction. This eliminates the need for merchants to invest in separate POS hardware and integrates seamlessly with PhonePe’s existing merchant QR dashboard, providing a unified interface for managing both card and QR payments.
These new services will expand the ways Visa cardholders can utilize their cards through the PhonePe platform, although availability will depend on factors such as the specific card, smartphone model, merchant acceptance, and country regulations. As of July 2026, PhonePe reported over 71.5 crore registered users and an extensive acceptance network covering more than 5 crore merchants across India.