NPCI to Launch UPI 3.0 to Enable TVs, Fridges, and Cars to Make Automated Payments

Making UPI payments through your phone or app could soon become old news. The National Payments Corporation of India (NPCI) is developing UPI 3.0—an upgrade that will let any smart device, from fridges to cars, pay on your behalf, completely hands-free. If you’ve ever wished your TV could pay for its own Netflix subscription, or your car could auto-pay tolls, the future is about to arrive.

What Is UPI 3.0 and How Will It Work?

UPI 3.0 aims to make the Unified Payments Interface truly IoT-ready (Internet of Things). In practical terms, this means that a wide range of connected devices—not just your smartphone—can be empowered to initiate automated, recurring payments without you having to approve every transaction manually.

Here’s how it works:

• Mandate-Based Setup: From your usual UPI phone/app, you give permission (a “mandate”) for a specific smart device to make certain payments.
• Secondary UPI ID: The device is assigned a unique secondary UPI ID, linked to your main account—kind of like giving “payment rights” to your smart fridge or car.
• Automated Payments: The device can now make small, capped payments on your behalf, such as Netflix renewals, groceries, tolls, or EV charging bills.
• User Control: Users will still have the option to set transaction limits, receive notifications, and make changes to the mandate via their primary UPI account.

Examples in detail:

• Imagine your smart fridge is equipped with weight sensors, cameras, or RFID tags that keep track of items like milk, eggs, or butter. When the fridge detects a product is running low or finished, it communicates with your grocery delivery app (such as Amazon Fresh or BigBasket) via the internet. Without you lifting a finger, it automatically places an order and makes the payment using its own secondary UPI ID linked to your main account. You’ll usually receive a notification before finalizing, allowing you to approve, modify, or cancel the order. This “autopilot for groceries” ensures your kitchen never runs out of essentials.

• Now picture your smart TV managing your streaming subscriptions. Your TV knows when your Netflix subscription renewal is due. Using UPI 3.0, it will automatically initiate the payment without requiring you to open an app or enter payment details repeatedly. This seamless process saves time and reduces the risk of service interruptions, keeping your favorite shows running without hassle.

What Is Powering UPI 3.0?

This innovation stands on India’s existing UPI autopay features, which already let users automate recurring expenses. UPI Circle, another feature, allows for controlled account sharing. UPI 3.0 is designed to combine and enhance these capabilities, adding IoT awareness and control so devices themselves may safely and independently transact within boundaries you control.

Why Is This a Big Deal—and What Could Go Wrong?

UPI 3.0 has the potential to make payments so seamless that you rarely need to pull out your phone or remember renewal dates. Need routine household purchases? Your smart home devices could handle the shopping for you.

But, this also raises some new challenges:

• Security & Fraud: If devices can pay automatically, they could become targets for hackers or malware, risking unauthorized transactions.
• Misuse & Overcharging: Sometimes, a device might misinterpret needs (for example, ordering groceries you already have), which could lead to unnecessary spending.
• Loss of Control: Automated payments could make users feel out of touch with their expenses if not carefully monitored.
• Setting Limits: It will be important for users to place strict spending caps and have easy ways to review and revoke mandates.
• Privacy: Devices tracking consumption habits and financial patterns will collect personal data, raising big privacy questions.
• Network Reliability: Poor internet or IoT glitches could result in failed (or even duplicate) payments.
• Regulatory Safeguards: Policymakers and RBI/NPCI will need to define clear guidelines to safeguard consumers and prevent misuse.

Current Scenario of UPI Payments in India

As of August 2025, UPI continues to dominate India’s digital payments landscape with daily transaction volumes reaching around 675 million and an average daily transaction value crossing ₹90,400 crore. In July 2025 alone, UPI recorded a staggering 19.47 billion transactions worth over ₹25 lakh crore. The platform serves more than 500 million active users, with strong adoption in both urban and rural areas—over 55% of rural India now uses UPI. Leading apps like PhonePe and Google Pay command nearly 85% of the marke

What’s Next?

It is anticipated that a formal announcement about UPI 3.0 will be made at the Global Fintech Fest 2025, pending regulatory approval. If successful, this leap will keep India at the global forefront of payments innovation—making life easier, but also challenging stakeholders to create secure, responsible systems for a world of “invisible” payments.

Check out: Paytm Gets RBI In-Principal Approval to operate as Payment Aggregators.