The Reserve Bank of India and the National Payment Corporation of India today announced UPI 123Pay, a feature phone version of UPI that allows users to make payments without using the internet.
UPI123PAY will include all of the required smartphone functionalities for feature phones. This project will raise the bar for digital payments, paving the road for a cashless economy.
“Two landmark initiatives are being launched today that is UPI123Pay and DigiSaathi. These two represent two diverse yet significant dimensions of our payments ecosystem. In UPI123Pay, there are broadly three steps which will take a user to take to complete transactions. UPI123Pay is about empowering more people to get onboarded digital experience through feature phones. DigitSaathi is all about further enhancing trust in digital payment ecosystem,” stated RBI governor, Shaktikanta Das.
“The launch of UPI123Pay makes the facilities under UPI now accessible to that section of society which was so far excluded from the digital payment landscape. In that way it is promoting financial inclusion in our economy,” he further added.
More than 40 crore Indians use feature phones and are unable to make payments using digital means. With this in mind, the RBI has introduced a digital payment mechanism that allows feature phone users to use digital payment methods as well. To allow feature phone users to transact using digital techniques, a common server site library has been built.
To transact online using the 123PAY function, you do not need to be connected to the internet. This service can also be accessed…
Smartphone and feature phone users may now effortlessly transact digitally thanks to the new capability.
UPI123Pay, or UPI for feature phones, is a three-step process: call, choose, and pay.
Before beginning to make a payment, the user must first link his or her bank account to the feature phone.
He will also be needed to create a UPI PIN using his debit card.
The user can utilise his or her feature phone to transact once the UPI PIN is configured.
The user of a feature phone will need to dial the IVR number and pick the phone that corresponds to the service requested, such as money transfer, LPG gas refill, FasTag recharge, mobile recharge, balance check, and so on.
To send money, you must first choose the recipient’s phone number, then input the amount and UPI PIN.
A merchant can utilise an app-based payment mechanism or a missed call payment technique to pay him.
He or she can also make digital payments using a voice-based mechanism.
According to a news release from the RBI, UPI123Pay has four separate options:
a. Application-based Functionality: On the feature phone, an app would be loaded, allowing numerous UPI functionalities accessible on smartphones to be made available on feature phones as well.
b. Missed Call: Feature phone users may access their bank account and complete ordinary operations such as receiving, transferring cash, regular purchases, bill payments, and so on by dialling a missed call on the number shown at the merchant outlet. An incoming call will be received from the consumer, requesting them to confirm the transaction by entering their UPI PIN.
c. IVR (Interactive Voice Response): UPI payment using a pre-determined IVR number.
d. Proximity Sound-based Payments: Using sound waves, this technology enables contactless, offline, and proximity data communication on any device.
