In a significant move towards making digital payments more inclusive, the National Payments Corporation of India (NPCI) launched UPI 123 pay in March 2022. This innovative solution enables the 400 million feature phone users in India to access UPI services without an internet connection. With UPI 123pay, users can now enjoy the convenience of instant payments through simple methods like interactive voice response (IVR), missed calls, and sound-based technology. Let’s dive deeper into how upi123 works and its benefits for users and businesses alike.
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What is UPI 123PAY?
UPI 123PAY is an instant payment solution that allows feature phone users to perform digital transactions using their UPI ID without the need for an internet connection or a smartphone. Developed by NPCI in collaboration with the Reserve Bank of India (RBI) in 2022, 123 Pay aims to bridge the digital divide and bring the benefits of UPI to a larger population.
To use Pay 123, users first need to link their bank account with their feature phone and set a UPI PIN. Once activated, they can access various payment methods suitable for non-smartphone users.
How to Set Up a UPI ID on a Feature Phone?
Setting up a UPI ID on a feature phone is a simple process without using a smartphone or the internet:
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Dial *99# from your feature phone
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Choose your bank from the list of options
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Enter the last 6 digits of your debit card and its expiry date
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Set your UPI PIN
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Your UPI ID is now active, and you can start using UPI 123 pay
How to Make Payments Using UPI 123PAY?
UPI 123PAY offers four convenient methods for making payments without an internet connection:
1. Payment via IVR Number
Users can call a predefined IVR number (080 4516 3666, 080 4516 3581, 6366 200 200) to initiate a secure transaction. After completing the necessary steps, they can make financial transactions in multiple languages.
2. Payment via Missed Call
By giving a missed call to a number provided by their bank, users can access their accounts and perform transactions such as sending money, paying bills, and more. The bank generates a token with the user’s mobile number and purchase amount, which the user authenticates by entering their UPI PIN when called back.
3. Payment via OEM Integration
Some feature phone manufacturers provide an app with UPI functionality similar to smartphone apps. Users can access most UPI features except scan and pay.
4. Payment via Sound-Based Technology
Using sound waves, what is UPI 123 pay enables contactless, offline payments on any device. Users call an IVR number, select “Pay to Merchant,” enter the amount and UPI PIN, and tap their phone on the merchant’s device to complete the transaction.
Key Benefits of UPI 123PAY
UPI 123PAY offers several advantages for users:
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Accessibility: Feature phone users can now enjoy digital payments without needing a smartphone or internet connection.
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Convenience: With multiple payment methods available, users can choose the one that suits them best.
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Security: UPI 123PAY follows the secure two-factor authentication protocol of UPI, ensuring safe transactions.
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Inclusivity: The service is available in multiple regional languages, making it accessible to a diverse population.
Business Benefits of UPI 123PAY
Upi123 benefits various stakeholders in the digital payment ecosystem:
1. For Banks:
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Expanded reach of payment services in remote areas
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Seamless, scalable merchant transactions across India
2. For Merchants:
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An easy self-onboarding process by calling a number
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Ability to accept payments from non-smartphone users
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Reduced challenges associated with cash handling and security
3. For Customers:
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Access to digital payments on feature phones without internet
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IVR service is available in the preferred local language
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Enhanced convenience with higher UPI Transaction Limit
How Does UPI 123PAY Differ from the Current UPI Interface?
While the current UPI interface requires a smartphone and an internet connection, upi123pay is designed specifically for feature phone users who may not have access to these resources. It offers alternative payment methods that do not rely on smartphones or the internet, making digital transactions more accessible to a broader audience.
However, UPI 123PAY does have some limitations compared to the smartphone-based UPI interface:
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Users can only link one bank account at a time
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The UPI Transaction Limit is ₹10,000 per transaction (increased from ₹5,000), with a daily limit of ₹1 lakh
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Certain features like scan and pay are not available
Despite these limitations, UPI 123PAY is a game-changer in terms of promoting financial inclusion and encouraging the adoption of digital payments among feature phone users.
Conclusion
UPI 123PAY is a significant step towards making digital payments accessible to every Indian, regardless of their access to smartphones or the internet. By providing simple, secure, and convenient payment methods for feature phone users, UPI 123 is driving the adoption of digital transactions and contributing to India’s vision of becoming a less-cash economy.
As more users embrace 123 pay, we can expect to see further enhancements and features that will make the service even more user-friendly and efficient. With its potential to revolutionize digital payments in India, UPI123 is undoubtedly a key player in the country’s ongoing financial transformation.
Frequently Asked Questions (FAQs):
1. Do I need an internet connection for UPI 123PAY?
No, UPI 123PAY is designed to work without an internet connection. Users can make payments using IVR, missed calls, OEM apps, or sound-based technology.
2. What is the per-day transaction limit through UPI 123PAY?
The per-transaction limit for UPI Lite is ₹10,000 (increased from ₹5,000), and the daily transaction limit is ₹1 lakh.
3. Can I link multiple bank accounts on UPI 123PAY?
Currently, users can only link one bank account at a time to their UPI 123 pay service. To change the linked account, you must first deregister the existing one.
4. Are there any charges for making payments through UPI 123PAY?
There are no additional charges for using UPI 123PAY. However, users may incur normal call charges as per their telecom provider’s tariff plans.
5. What will happen if I enter the wrong UPI PIN for authorizing UPI123 Pay?
If you enter the wrong UPI PIN, the transaction will fail. Multiple wrong attempts may temporarily block your ability to send money via UPI from the linked account. Be sure to enter your PIN carefully to avoid any inconvenience.
