Strategic Expansion of Digital Payments
At the Global Fintech Fest (GFF) 2026 in Mumbai, fintech firm PhonePe and global payments leader Visa announced a comprehensive partnership designed to shift the Indian digital payments landscape toward a cardless, device-driven model. The collaboration integrates several Visa payment capabilities directly into the PhonePe ecosystem, allowing users to conduct online, in-store, and international transactions without requiring a physical card.
According to The Economic Times, the initiative builds upon existing device tokenisation technology introduced on the platform in February 2025. By unifying these digital tools, the companies aim to streamline the payments value chain for both consumers and micro-merchants.
New Consumer and Merchant Capabilities
The partnership introduces several key features:
- Tap to Pay: Starting September 9, 2026, Android users can tokenise their Visa cards to make contactless payments at POS terminals using only their smartphones, even in low-connectivity environments.
- Cross Border Scan to Pay: This feature enables users to scan Visa-supported QR codes in 14 international markets, including Japan, South Korea, Thailand, and China, reducing the need for currency exchange friction.
- Smart Accept: Designed for small businesses, this tool allows merchants to accept card payments via their smartphones, effectively turning their mobile devices into POS terminals without the need for additional hardware.
Rahul Chari, Founder and CPTO at PhonePe, stated that the partnership is intended to make payments “universally accessible, intuitive, and secure.” Suresh Sethi, Group Country Manager for India and South Asia at Visa, added that the collaboration is a step toward making digital commerce more frictionless across borders.
Future of India’s Digital Ecosystem
This initiative reflects a broader trend in India’s digital finance sector, moving beyond simple peer-to-peer transfers toward integrated, multi-channel commerce. By consolidating card and QR transactions into a single interface, PhonePe and Visa are attempting to lower the barrier to entry for small-scale merchants while simplifying the user experience for millions of consumers. The companies believe this shift will eventually make the distinction between online and offline payments increasingly invisible to the end user.