New Delhi: PhonePe and Mastercard have partnered to launch a new feature enabling Mastercard cardholders in India to make contactless payments using their NFC-enabled smartphones.

The functionality allows users to tap their smartphones at payment terminals through the PhonePe app for in-store purchases. It also supports tokenised e-commerce transactions, offering a secure and frictionless payment experience across NFC-capable Android devices.

Cardholders can save their Mastercard credit, debit or prepaid cards issued in India on their phones, enjoying all the benefits of card-based payments. By combining Mastercard’s global expertise in tokenisation with PhonePe’s 618 million registered users, the collaboration aims to expand access to digital payments both in India and abroad.

Deep Agrawal, Head of Payments at PhonePe, said, “We're delighted to collaborate with Mastercard to bring device-based tokenisation to millions of PhonePe users. With an increased penetration of NFC-enabled smartphones coupled with growing consumer preference towards usage of 'tap and pay' using their cards, this functionality marries the two seamlessly. This elevates both convenience and security for users, enabling contactless payments at physical stores and safer online transactions -- all within the familiar PhonePe app. We view this association as yet another key step toward delivering a world-class payment experience to PhonePe users across India and when travelling abroad.”

Mastercard cardholders will now be able to make secure tap-and-pay transactions at NFC-enabled terminals, while tokenised payments protect online transactions, rendering stolen credentials unusable elsewhere. Once a card is saved, checkout is faster and more secure for every transaction.

Ravi Datla, Senior Vice President, Products and Solutions, South Asia, Mastercard, said, “Mastercard has always believed in scaling innovation. This collaboration with PhonePe marks a key step in broadening the reach of digital payments by expanding device-based tokenisation, empowering Mastercard cardholders exclusively to 'tap and pay' at merchant outlets, both within the country and abroad. India plays a pivotal role in setting the pace of digital commerce globally, and Mastercard is proud to support this momentum with solutions that make transactions smarter and safer.”

The new feature will roll out to Mastercard users on the PhonePe app in phases, with a simple one-time process to add and tokenise cards for secure payments.

IANS