PhonePe and Visa have launched new payment solutions enabling users to make online, contactless and international QR payments using tokenised Visa cards stored on smartphones.
PhonePe and Visa have announced a set of new payment features designed to make card-based transactions easier across online purchases, physical stores and international markets.
The solutions were unveiled at the Global Fintech Fest 2026 and bring together several Visa technologies on the PhonePe platform. The partnership combines Online Device Tokenization, Tap to Pay and Cross Border Scan to Pay, along with PhonePe's Smart Accept solution for small merchants.
PhonePe said it is the first Indian application to bring the three consumer-focused Visa capabilities together. It also claims to be the first Indian app to introduce Visa's Cross Border Scan to Pay capability for international transactions.
Under the new arrangement, PhonePe users can save eligible Visa cards within the app through device tokenization.
Once tokenised, the card can be used for supported digital transactions without requiring users to repeatedly enter their physical card details.
The technology is intended to provide greater convenience while adding security to digital card payments. Users can use their smartphones for contactless transactions at participating stores, online checkout and QR-based payments while travelling internationally.
This creates a more connected payment experience in which a Visa card stored on PhonePe can be used across different transaction environments.
One of the key additions is Tap to Pay, which allows Android smartphone users to tokenise their Visa cards and make contactless payments at compatible point-of-sale terminals.
Instead of physically handing over a card, users can use their smartphones to complete supported contactless transactions.
PhonePe said the feature has been designed to function even in environments with limited connectivity. The rollout is being conducted in phases, with the initial launch beginning on September 9, 2026.
The feature builds on PhonePe's earlier work with Visa device tokenization.
PhonePe launched Visa Device Tokenization on its platform in February 2025. The technology enables customers to securely store their Visa card on the PhonePe application and use it for supported transactions.
The latest partnership expands the potential use cases of the technology by connecting tokenised cards with contactless payments and international QR transactions.
As more payment methods move toward smartphones and digital wallets, tokenization can help reduce the need to expose actual card details during transactions.
PhonePe and Visa have also introduced Cross Border Scan to Pay, aimed at Indian customers travelling overseas. The feature allows PhonePe users to scan Visa-supported QR codes to make payments in participating international markets.
The companies said the service will cover 14 international markets. Countries listed include Singapore, Malaysia, Thailand, Vietnam, Indonesia, Sri Lanka, Japan, China and South Korea, among others.
The feature is expected to be made available to users soon.
For Indian travellers, the service could make overseas payments more convenient by allowing them to use their PhonePe application and eligible Visa cards for QR-based transactions where the service is supported.
The partnership also includes Smart Accept, a solution designed to help smaller businesses accept card payments without investing in a traditional point-of-sale machine.
With Smart Accept, merchants can use compatible smartphones to receive card payments.
Customers can tap either a physical card or a tokenised mobile wallet against the merchant's smartphone to complete an eligible transaction.
This could reduce the equipment requirements for small businesses and make card acceptance more accessible to merchants that may not want to purchase or maintain dedicated payment terminals.
Smart Accept is integrated with PhonePe's existing QR dashboard. According to the companies, this integration can help merchants manage transactions and daily reconciliation through a unified interface.
It is also intended to simplify dispute-resolution processes, giving small businesses a more streamlined way to manage different payment methods.
The development comes as digital payments continue to expand across India's merchant ecosystem, particularly among small and micro businesses.
Rahul Chari, Founder and CPTO at PhonePe, said the company's objective is to make payments more accessible, intuitive and secure. He described the partnership with Visa as an important step in expanding that vision beyond traditional card payments.
By combining online tokenization, contactless payments, international QR transactions and merchant acceptance technology, PhonePe aims to reduce friction across different stages of the payment process.
The company sees the collaboration as part of a broader move towards smartphone-led and borderless commerce.
The combined offering gives eligible PhonePe users multiple ways to use a Visa card saved within the app.
For online purchases, the tokenised card can be used at participating merchant checkouts. For physical purchases, Tap to Pay allows compatible Android devices to function as contactless payment tools.
During international travel, Cross Border Scan to Pay provides QR-based payment functionality in participating markets.
At the merchant end, Smart Accept allows small businesses to accept card payments using smartphones instead of dedicated POS terminals.
The PhonePe-Visa partnership highlights how payment companies are increasingly combining cards, smartphones, tokenization and QR technology into a single ecosystem.
For consumers, the focus is on convenience and reducing dependence on physical cards. For merchants, smartphone-based acceptance could lower the barriers to accepting digital card payments.
The international component could also provide Indian travellers with another digital payment option in supported overseas markets.
As these services expand, their adoption will depend on merchant availability, supported cards, compatible devices and participating international payment networks.
Conclusion
PhonePe and Visa's latest partnership brings together online card tokenization, smartphone-based contactless payments, international QR transactions and card acceptance for small merchants. The combined solutions are designed to make payments more convenient while reducing dependence on physical cards and traditional POS equipment. With Tap to Pay, Cross Border Scan to Pay and Smart Accept, the companies are expanding the role of smartphones across the payment ecosystem. The initiative also reflects the broader shift towards secure, tokenised and increasingly borderless digital commerce for Indian consumers and merchants.