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UPI 123Pay: Offline Digital Payments in India
India’s Unified Payments Interface (UPI) leads the world in real-time transactions, holding the record for the highest volume globally. In 2023 alone, UPI facilitated an astonishing 48.6 billion transactions, cementing its status as the largest digital payment system by transaction volume. To extend its reach to users with feature phones and no internet access, the National Payments Corporation of India (NPCI) introduced UPI 123Pay. This innovative service allows users to make digital transactions seamlessly without relying on internet connectivity. Learn what UPI 123Pay is and how it will revolutionize the daily lives of millions after the inclusion of the digitally excluded masses.
What is UPI123 Pay?
UPI 123 Pay is a real-time payment solution designed for individuals using feature phones without internet access. This innovative service allows users to perform UPI transactions in a simpler, faster, and more accessible manner, promoting financial inclusivity. It aims to extend the reach of digital payments to approximately 400 million feature phone users across the country. The service operates using account and phone numbers, leverages Dual Tone Multi-Frequency (DTMF) signaling technology, and strictly adheres to UPI's two-factor authentication protocol, ensuring secure and seamless transactions.
How does UPI123 work in feature phones?
Setting up UPI123PAY on your feature phone requires creating a UPI ID. Follow these steps:
- Step 1 - Dial *99# and select your bank.
- Step 2 - Next, enter the last six digits of your debit card along with its expiry date.
- Step 3 - You'll then be prompted to create your UPI PIN.
- Step 4 - Once your UPI PIN is set, your UPI ID will be activated and ready to use.
How to make payment using UPI123 Pay?
Users can conveniently access UPI123 pay services through four different technologies as follows:
Payment through IVR number
Users can conduct seamless UPI transactions on any phone by initiating a secure call to a designated IVR number. UPI onboarding can be completed without internet access, and the IVR system offers multilingual support. A comprehensive list of participating banks and service providers is available in the UPI123 Pay live members section.
Payment through Missed Call
The missed call method enables feature phone users and those with limited or no internet connectivity to conduct routine banking transactions. When a purchase is made, a token linking the customer's mobile number and the purchase amount is created. The user then places a missed call to the designated IVR number and receives an immediate incoming call, prompting them to authenticate the transaction by entering their UPI PIN. The onboarding process is identical to the IVR-based approach.
Payment through App functionality on feature phones
A UPI app for feature phones has been developed through collaborations between Gupshup and Airtel Payments Bank, and JioPay and Jio Payments Bank. Implementation of this solution necessitates partnerships between solution providers and feature phone original equipment manufacturers (OEMs) to ensure native app integration. The app's interface is designed to resemble that of a smartphone app, though certain limitations exist due to the capabilities of feature phones. The app supports a wide range of UPI functionalities, including Scan and Pay for devices equipped with cameras.
Payment through Sound based technology
This proximity sound-based payment method facilitates contactless UPI transactions with merchants. To initiate a payment, users call the IVR number, choose the "Pay to Merchant" option, and tap their phone against the merchant's sound box. Upon hearing a unique tone, users press #, enter the payment amount and their UPI PIN, and finalize the transaction. Both the sound box and the IVR call provide transaction confirmation.
Benefits of UPI123 Pay
UPI 123PAY offers several key benefits for users:
- Access to Digital Payments on Feature Phones: UPI 123PAY allows feature phone users to make instant digital payments through their UPI accounts.
- Freedom from Internet and Smartphones: Conduct transactions without needing a smartphone or internet connection.
- Language Accessibility: Use UPI 123PAY in your preferred language, with support for Hindi, English, and several regional languages, including Kannada, Tamil, Bengali, Malayalam, and Telugu.
- Secure Transactions: Protect your transactions with two-factor authentication, which helps prevent fraud.
How is UPI123 Pay different from its original counterpart?
While the Standard UPI interface relies on smartphones and internet connectivity, UPI 123PAY specifically targets feature phone users who lack these resources. By providing alternative, offline payment methods, it broadens access to digital transactions.
However, UPI 123PAY has certain limitations compared to its smartphone counterpart: it supports only one linked bank account per user, imposes a transaction limit of ₹10,000 (increased from ₹5,000) and a daily limit of ₹1 lakh, and does not offer features such as scan and pay.
Despite these constraints, UPI 123PAY represents a significant step towards financial inclusion, driving the adoption of digital payments among feature phone users.
Frequently Asked Questions
Q- Can I change or reset my UPI PIN for UPI 123PAY from my feature phone?
Yes, you can change or reset your UPI PIN. Follow these steps:
- Call the designated IVR number.
- Navigate to the account settings ("Manage your account").
- Select the option to update your UPI PIN.
- Enter your current UPI PIN, then enter your new UPI PIN twice for confirmation.
- Your UPI PIN will be successfully changed or reset.
Q- Will I have an app on my feature phone to make payments through UPI 123PAY?
There are two ways to make payments on a feature phone:
- With a Pre-installed App: Some feature phones (currently including select Nokia, Jio, and Transsion models) come with pre-installed apps for offline payments. Register within the app to make payments without internet access.
- Without an App: You can make payments on any feature phone, regardless of internet connectivity, using methods such as IVR and missed call pay.
Q- What is a SIM overlay, and do I need to buy a new SIM to use this service?
A SIM overlay is a microchip placed between your existing SIM card and your phone. Once installed, it enables access to a dedicated app on your feature phone, allowing you to make UPI payments without needing a new SIM card.
Q- Can I make payments from my bank account using a friend's or family member's feature phone?
No. Payments can only be made from the mobile number linked to your bank account.
