UPI Payment Change: NPCI Discontinues Old UPI Collect Payment Method From 2026

UPI Payment Change: The digital payments landscape in India is set to witness a major shift as the National Payments Corporation of India (NPCI) plans to upgrade the Unified Payments Interface (UPI) infrastructure. To make online transactions faster and more secure, a widely used, older method of processing UPI payments phased out. This new directive came into effect on February 28, 2026.

How Will Payments Work Under the New Rule?

According to the upcoming changes, customers will no longer need to manually type their UPI ID or mobile number to send a payment request. Instead, users will be provided with direct options to either click on a specific payment app icon or scan a QR code. Clicking the app icon during checkout will directly launch the UPI application on your smartphone, saving time and making the transaction process much smoother and more secure.

What is ‘UPI Collect’ and Why is it Closing?

Until now, many buyers entered their UPI ID or mobile number manually on merchant websites while checking out. The merchant’s platform would then send a payment request to the user’s UPI app, where the user had to enter their PIN to authorize the deduction. This entire process was known as ‘UPI Collect’. Due to the manual entry involved, this method was slightly time-consuming and carried potential security vulnerabilities. As a result, it is being discontinued across most platforms.

Where Will the Old Method Continue to Work?

Although the UPI Collect method will be largely discontinued after February 28, 2026, it will remain functional for certain specific use cases:

• Stock Market and IPOs: Investors will still need to manually enter their UPI ID or mobile number when investing in the stock market or applying for a company’s Initial Public Offering (IPO).
• Apple and iOS Users: Individuals making purchases through browsers or mobile applications on an iPhone or other iOS devices will continue to use the legacy system.
• Managing Auto-Payments: Modifying or cancelling existing auto-payment mandates will still require users to input their UPI ID or mobile number manually.
• International Transactions: The traditional UPI Collect method will remain active for payments made to foreign websites or international businesses.