{"id":19742,"date":"2026-01-08T19:23:46","date_gmt":"2026-01-08T13:53:46","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=19742"},"modified":"2026-01-09T01:23:59","modified_gmt":"2026-01-08T19:53:59","slug":"what-is-upi-123-pay","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/","title":{"rendered":"UPI 123PAY: What is It, Benefits &#038; How it Works?"},"content":{"rendered":"<p dir=\"ltr\">In a significant move towards making digital payments more inclusive, the <a href=\"https:\/\/razorpay.com\/learn\/national-payments-corporation-of-india-services\/\">National Payments Corporation of India<\/a> (NPCI) launched UPI\u00a0123 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&#8217;s dive deeper into how upi123 works and its benefits for users and businesses alike.<\/p>\n<div style=\"border-left: 4px solid #0073aa; background: #f0f8ff; padding: 18px; margin: 20px 0; border-radius: 8px;\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7a814602cb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7a814602cb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#What_is_UPI_123PAY_for_Feature_Phones\" >What is UPI 123PAY for Feature Phones?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#How_to_Set_Up_a_UPI_ID_on_a_Feature_Phone\" >How to Set Up a UPI ID on a Feature Phone?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#How_to_Make_Payments_Using_UPI_123PAY_on_Feature_Phones\" >How to Make Payments Using UPI 123PAY on Feature Phones?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#Key_Benefits_of_UPI_123PAY\" >Key Benefits of UPI 123PAY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#Business_Benefits_of_UPI_123PAY_for_Feature_Phones\" >Business Benefits of UPI 123PAY for Feature Phones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#How_Does_UPI_123PAY_Differ_from_the_Current_UPI_Interface\" >How Does UPI 123PAY Differ from the Current UPI Interface?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/what-is-upi-123-pay\/#Frequently_Asked_Questions_FAQs\" >Frequently Asked Questions (FAQs):<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"color: #0073aa; font-size: 18px; margin: 0 0 10px 0;\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"margin: 0; padding-left: 20px; line-height: 1.7;\">\n<li>UPI 123PAY is built for feature phones and lets users make UPI payments without internet or a smartphone, to widen access to digital payments.<\/li>\n<li>To start using it, users link a bank account + set a UPI PIN (the article explains a feature-phone setup flow using *99#).<\/li>\n<li>It supports 4 offline-style payment methods: IVR calls, missed-call flow, OEM\/app-based UPI on feature phones, and sound-based proximity payments.<\/li>\n<li>Core benefits are accessibility, convenience, and security (it follows UPI\u2019s two-factor authentication and supports multiple regional languages).<\/li>\n<li>Key constraints to remember: one bank account at a time, \u20b910,000 per transaction, \u20b91 lakh daily limit, and no scan-and-pay on feature phones.<\/li>\n<\/ul>\n<\/div>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_is_UPI_123PAY_for_Feature_Phones\"><\/span>What is UPI 123PAY for Feature Phones?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">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.<\/p>\n<p dir=\"ltr\">To use Pay 123, users first need to link their bank account with their feature phone and set a <a href=\"https:\/\/razorpay.com\/learn\/what-is-a-upi-pin\/\">UPI PIN<\/a>. Once activated, they can access various <a href=\"https:\/\/razorpay.com\/blog\/different-types-of-payment-methods\/\">payment methods<\/a> suitable for non-smartphone users.<br \/>\n<span data-sheets-root=\"1\"><br \/>\n<strong><em>Related Read: <a href=\"https:\/\/razorpay.com\/blog\/difference-between-upi-and-upi-lite\/\">UPI vs UPI Lite: What\u2019s the Difference?<\/a><\/em><\/strong><\/span><\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_to_Set_Up_a_UPI_ID_on_a_Feature_Phone\"><\/span>How to Set Up a UPI ID on a Feature Phone?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Setting up a <a href=\"https:\/\/razorpay.com\/learn\/what-is-upi-id\/\">UPI ID<\/a> on a feature phone is a simple process without using a smartphone or the internet:<\/p>\n<ol dir=\"ltr\">\n<li>\n<p dir=\"ltr\">Dial *99# from your feature phone<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Choose your bank from the list of options<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Enter the last 6 digits of your debit card and its expiry date<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Set your UPI PIN<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Your UPI ID is now active, and you can start using UPI 123 pay<\/p>\n<\/li>\n<\/ol>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_to_Make_Payments_Using_UPI_123PAY_on_Feature_Phones\"><\/span>How to Make Payments Using UPI 123PAY on Feature Phones?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">UPI 123PAY offers four convenient methods for making payments without an internet connection:<\/p>\n<h3 dir=\"ltr\">1. Payment via IVR Number<\/h3>\n<p dir=\"ltr\">Users can call a predefined <a href=\"https:\/\/razorpay.com\/blog\/ivr-payments\/\">IVR number<\/a> (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.<\/p>\n<h3 dir=\"ltr\">2. Payment via Missed Call<\/h3>\n<p dir=\"ltr\">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&#8217;s mobile number and purchase amount, which the user authenticates by entering their UPI PIN when called back.<\/p>\n<h3 dir=\"ltr\">3. Payment via OEM Integration<\/h3>\n<p dir=\"ltr\">Some feature phone manufacturers provide an app with UPI functionality similar to smartphone apps. Users can access most UPI features except scan and pay.<\/p>\n<h3 dir=\"ltr\">4. Payment via Sound-Based Technology<\/h3>\n<p dir=\"ltr\">Using sound waves, UPI 123 pay enables contactless, <a href=\"https:\/\/razorpay.com\/learn\/offline-payment\/\">offline payments<\/a> on any device. Users call an IVR number, select &#8220;Pay to Merchant,&#8221; enter the amount and UPI PIN, and tap their phone on the merchant&#8217;s device to complete the transaction.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Key_Benefits_of_UPI_123PAY\"><\/span>Key Benefits of UPI 123PAY<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">UPI 123PAY offers several advantages for users:<\/p>\n<ol dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><strong>Accessibility:<\/strong> Feature phone users can now enjoy digital payments without needing a smartphone or internet connection.<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong>Convenience:<\/strong> With multiple payment methods available, users can choose the one that suits them best.<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong>Security:<\/strong> UPI 123PAY follows the secure<a href=\"https:\/\/razorpay.com\/learn\/two-factor-authentication-in-payments\/\"> two-factor authentication<\/a> protocol of UPI, ensuring safe transactions.<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong>Inclusivity:<\/strong> The service is available in multiple regional languages, making it accessible to a diverse population.<\/p>\n<\/li>\n<\/ol>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Business_Benefits_of_UPI_123PAY_for_Feature_Phones\"><\/span>Business Benefits of UPI 123PAY for Feature Phones<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Upi123 benefits various stakeholders in the digital payment ecosystem:<\/p>\n<h3 dir=\"ltr\">1. For Banks:<\/h3>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\">Expanded reach of payment services in remote areas<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Seamless, scalable merchant transactions across India<\/p>\n<\/li>\n<\/ul>\n<h3 dir=\"ltr\">2. For Merchants:<\/h3>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\">An easy self-onboarding process by calling a number<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Ability to accept payments from non-smartphone users<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Reduced challenges associated with cash handling and security<\/p>\n<\/li>\n<\/ul>\n<h3 dir=\"ltr\">3. For Customers:<\/h3>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\">Access to <a href=\"https:\/\/razorpay.com\/learn\/digital-payments-india-definition-methods-importance\/\">digital payments<\/a> on feature phones without internet<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">IVR service is available in the preferred local language<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Enhanced convenience with higher <a href=\"https:\/\/razorpay.com\/learn\/upi-transaction-charges\/#:~:text=Transaction%20Limit%3A%20The%20transaction%20limit,for%20the%20first%2024%20hours.\">UPI Transaction Limit<\/a><\/p>\n<\/li>\n<\/ul>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_Does_UPI_123PAY_Differ_from_the_Current_UPI_Interface\"><\/span>How Does UPI 123PAY Differ from the Current UPI Interface?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">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.<\/p>\n<p dir=\"ltr\">However, UPI 123PAY does have some limitations compared to the smartphone-based UPI interface:<\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\">Users can only link one bank account at a time<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">The UPI Transaction Limit is \u20b910,000 per transaction (increased from \u20b95,000), with a daily limit of \u20b91 lakh<\/p>\n<\/li>\n<li>\n<p dir=\"ltr\">Certain features like scan and pay are not available<\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\">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.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">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\u00a0123 is driving the adoption of digital transactions and contributing to India&#8217;s vision of becoming a less-cash economy.<\/p>\n<p dir=\"ltr\">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 <a href=\"https:\/\/razorpay.com\/learn\/digital-payments-india-definition-methods-importance\/\">digital payments in India<\/a>, UPI123 is undoubtedly a key player in the country&#8217;s ongoing financial transformation.<\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><a style=\"background-color: #1a73e8; color: #ffffff; font-weight: 800; padding: 7px 15px; border-radius: 7px; font-size: 16px; text-decoration: none; display: inline-block; white-space: nowrap;\" href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/?utm_source=blog&amp;utm_medium=referral&amp;utm_campaign=internationalpayments\">Explore Razorpay&#8217;s Global Payment Solutions<\/a><\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs):<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\">1. Do I need an internet connection for UPI 123PAY?<\/h3>\n<p dir=\"ltr\">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.<\/p>\n<h3 dir=\"ltr\">2. What is the per-day transaction limit through UPI 123PAY for feature phones?<\/h3>\n<p dir=\"ltr\">The per-transaction limit for <a href=\"https:\/\/razorpay.com\/blog\/what-is-upi-lite\/\">UPI Lite<\/a> is \u20b910,000 (increased from \u20b95,000), and the daily transaction limit is \u20b91 lakh.<\/p>\n<h3 dir=\"ltr\">3. Can I link multiple bank accounts on UPI 123PAY?<\/h3>\n<p dir=\"ltr\">Currently, users can only link one bank account at a time to their UPI\u00a0123 pay service. To change the linked account, you must first deregister the existing one.<\/p>\n<h3 dir=\"ltr\">4. Are there any charges for making payments through UPI 123PAY?<\/h3>\n<p dir=\"ltr\">There are no additional charges for using UPI 123PAY. However, users may incur normal call charges as per their telecom provider&#8217;s tariff plans.<\/p>\n<h3 dir=\"ltr\">5. What will happen if I enter the wrong UPI PIN for authorizing UPI123 Pay?<\/h3>\n<p dir=\"ltr\">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.<\/p>\n<h3><strong>6. Can I receive refunds through UPI\u202f123PAY if a transaction fails?<\/strong><\/h3>\n<p><b><\/b><span style=\"font-weight: 400;\"> Yes, any failed or reversed UPI\u202f123PAY transactions are refunded automatically to your bank account within 2 working days, and you can also raise a dispute with your bank if the refund is delayed.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h3><strong>7. Does UPI\u202f123PAY support payments to non-UPI users?<\/strong><\/h3>\n<p><b><\/b><span style=\"font-weight: 400;\"> No, payments via UPI\u202f123PAY can only be made to users who are registered on UPI, including feature\u2010phone and smartphone users.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h3><strong>8. Is there a fee for using sound-based (tone) payments on UPI\u202f123PAY?<\/strong><\/h3>\n<p><b><\/b><span style=\"font-weight: 400;\"> No, sound\u2011based payments via UPI\u202f123PAY are free of charge, though standard call or network charges may apply per your telecom plan.<\/span><\/p>\n<h3><strong>9. Can I switch the language during a transaction on UPI\u202f123PAY?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0Yes, during any IVR or missed\u2011call payment, you can switch languages mid\u2011transaction by choosing the relevant menu option.<\/span><\/p>\n<h3><strong>10. Can I change banks on my UPI\u202f123PAY account using just my feature phone?<\/strong><\/h3>\n<p><b><\/b><span style=\"font-weight: 400;\"> Yes, to switch banks via IVR on feature phones, deregister your existing account and then register the new one through the same IVR flow.<\/span><\/p>\n<h3>11. How does UPI 123PAY work?<\/h3>\n<p><span style=\"font-weight: 400;\">UPI 123PAY lets you make UPI payments on a feature phone without using mobile data. It works by linking your bank account to UPI, setting a UPI PIN, and then completing payments through simple phone call based or basic app based flows.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a significant move towards making digital payments more inclusive, the National Payments Corporation of India (NPCI) launched UPI\u00a0123 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<\/p>\n","protected":false},"author":142,"featured_media":20686,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[853,854],"class_list":{"0":"post-19742","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-upi-123-pay","9":"tag-what-is-upi-123-pay"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/142"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=19742"}],"version-history":[{"count":15,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19742\/revisions"}],"predecessor-version":[{"id":25317,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/19742\/revisions\/25317"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/20686"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=19742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=19742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=19742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}