To bring thousands of feature phone users to the digital payment system, reserve Bank of India (RBI) has recently unveiled UPI 123pay, as said Unified Payments Interface (UPI) for feature phonesThe new payment mode will allow individuals to make instant payments without a smartphone or internet connection. Experts believe that this game-changing move is all set to democratize India’s way of transacting.
Unified Payments Interface or UPI has emerged as the most used digital payment mode in recent years. With the launch of UPI 123Pay, around 400 million feature phone users will be able to participate in the digital payment system in a secure manner.
What is UPI 123Pay?
Simply put, UPI 123Pay allows individuals to send money or do other financial transactions through feature phones. The system does not require an internet connection to send or receive money. Users can follow an easy three-step method to initiate and execute UPI transactions. Launching this new initiative, RBI Governor Shaktikanta Das said, “UPI 123Pay is all about empowering more people to have an on-board digital experience through feature phones.”
How to Use UPI 123Pay for Feature Phones
With UPI 123Pay, users no longer need a smartphone or internet connection to make Unified Payments Interface payments. To use the UPI service, customers just need to link their bank account with the feature phone along with their debit card details. Feature phone users can transact in four different ways – missed call, app-based functionality, interactive voice response or IVR and proximity voice-based payment. Let’s see how these methods work
Missed Call: Individuals with feature phones can easily send money, pay bills and make payments to merchants through a simple missed call. To pay bills at a neighborhood kirana shop, users need to give a missed call to the number displayed at the merchant outlet. they will receive a call immediately
Authenticate the transaction by entering the UPI PIN to complete the transaction.
App Based UPI 123Pay: An app will be installed on the feature phone through which customers can use many UPI functions. Except scan and payment features, all other UPI payment facilities will be available to feature phone users.
Interactive Voice Response (IVR): To initiate UPI payment through IVR, users need to initiate a secure call from their feature phone to a predetermined number. Once the UPI on-boarding formalities are completed, they will be able to start doing financial transactions without an internet connection.
Proximity sound based payment: It uses sound waves to enable contactless, offline and proximity data communication on any device, RBI mentioned.
UPI 123Pay: Where You Can Use It
With the UPI 123Pay option, individuals can make payments at shops, transfer money, refill LPG gas connections, recharge mobile phone numbers, recharge FASTag for vehicles, pay utility bills, etc. Can make payments, pay EMIs among various financial transactions. This unique feature will also allow users to check the balance of their bank account linked to UPI.
“To bring thousands of feature phone users within the digital ecosystem, RBI launched UPI payment services for non-internet/feature phones. Calling it UPI 123 Pay, the move will further boost digital adoption. There has been a transformational change in the digital payments industry in the country. UPI was till now limited to smartphone users, keeping a large segment of potential users in rural areas out of this ecosystem. Nitin Mathur, CEO, Tawaga Advisory Services, said the move will help deepen financial penetration and broaden mainstream digitization.
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