PhonePe, backed by Walmart, has teamed up with Visa to roll out three new cardless payment solutions aimed at enhancing payment convenience across India and 14 overseas markets, including major Asian economies.
- Tap to Pay enables contactless Visa card payments on Android phones across India.
- Cross Border Scan to Pay allows Visa QR code payments in 14 international markets.
- Smart Accept lets small merchants accept card payments directly via smartphones.
What happened
PhonePe has announced a partnership with Visa to launch three new cardless payment solutions targeting both consumers and merchants in India, with extensions to 14 overseas markets. These solutions include Tap to Pay, Cross Border Scan to Pay, and Smart Accept. Tap to Pay empowers Android users to make contactless Visa card payments by simply tapping their smartphone on compatible POS machines. Cross Border Scan to Pay allows PhonePe users to make payments by scanning Visa QR codes in international markets such as Singapore, Malaysia, and Japan. Smart Accept enables small merchants to accept contactless card payments directly on their smartphones without the need for dedicated POS machines.
The rollouts are scheduled to begin from September 2026, with the Smart Accept service’s merchant availability timeline yet to be disclosed. This move builds on PhonePe’s previous device-tokenisation solution launched in February 2025 and follows the introduction of a similar Tap & Pay feature for Mastercard holders last year. The partnership was officially unveiled at the Global Fintech Fest 2026 in Mumbai.
Why it matters
This partnership addresses key friction points in the payments ecosystem by offering seamless, cardless, and borderless payment methods that cater to both consumers and micro-merchants. For Indian consumers, it enables easier and faster transactions domestically and overseas, particularly in countries with significant trade and diaspora connections. For small merchants, the introduction of Smart Accept removes barriers related to infrastructure costs and complexity, allowing more seamless acceptance of contactless card payments using just smartphones.
The initiative aligns with Prime Minister Narendra Modi’s call for expanding payment systems connectivity internationally, although PhonePe’s cross-border offering uses Visa’s card network rather than UPI. It signals a step forward in integrating India’s fintech capabilities with global payment networks, expanding usage beyond domestic confines, and enhancing financial inclusion for smaller merchants. This move also comes as PhonePe prepares for a public listing amid robust revenue growth but increased losses.
What to watch next
Upcoming months will provide insights into customer adoption rates of the Tap to Pay and Cross Border Scan to Pay features across India and the 14 international markets covered. The timing and market reception of the Smart Accept solution for merchants will be crucial to understanding the impact on small business payment acceptance and overall uptake of cardless payment technology in India’s informal economy.
Additionally, the progression of PhonePe’s IPO plans and how the company leverages these new payment capabilities to strengthen its competitive positioning will be watched closely by investors and industry observers. The broader fintech ecosystem will monitor how this partnership influences cross-border payments innovation, especially amid evolving regulations and increasing demands for seamless global payment interoperability.