In recent years, the Unified Payment Interface (UPI) has redefined the way we make financial transactions in India. With its seamless money transfer capabilities, UPI has become a favorite for millions, crossing a remarkable $1 trillion in transaction value in FY 21-22, according to NPCI. While initially available only to smartphone users, a large portion of the population without internet-enabled devices remained untouched by this digital transformation. Enter UPI123PAY—a revolutionary initiative by the Reserve Bank of India (RBI) that extends UPI services to feature phone users. This is a game-changer for the estimated 400 million feature phone users in India, empowering them to make easy and quick digital payments.
But what exactly is UPI123PAY, and how does it work? Let’s explore.
Understanding UPI and UPI123PAY
Unified Payment Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows instant money transfers between bank accounts through a single platform. Users can send money, pay for purchases, or even settle utility bills—all with a simple app. However, until recently, this was possible only through internet-enabled smartphones. Now, UPI123PAY brings UPI’s powerful capabilities to feature phones, bridging the digital divide and enabling a large segment of the population to access digital payments without needing the internet.
Key Features of UPI
- Instant Transfers: Make payments in seconds, anytime—24/7, 365 days a year.
- Multiple Bank Accounts: Manage multiple bank accounts using just one mobile application.
- Secure Transactions: Strong two-factor authentication ensures secure transactions.
- No More Cash Hassles: Eliminate the need to withdraw or carry cash—UPI is your answer to convenient payments.
- Wide Range of Payments: Use UPI for utility bills, merchant payments, QR code scanning, and much more.
- Virtual Payment Address (VPA): Protect your bank details with a secure alias—your VPA.
What is UPI123PAY?
UPI123PAY is an extension of UPI that enables feature phone users to make digital payments without an internet connection. With UPI123PAY, people who do not have access to smartphones can still enjoy the convenience and security of UPI. It offers four distinct ways to initiate and complete payments: through IVR calls, missed calls, app functionality on feature phones, and sound-based technology.
How to Use UPI123PAY with IVR
Interactive Voice Response (IVR) is one of the most accessible ways for feature phone users to use UPI123PAY. Here’s how it works:
Step 1: Dial the IVR Number Start by dialing a dedicated IVR number provided by your bank. This service enables you to initiate digital transactions without an internet connection.
Step 2: Create Your Profile If you are a first-time user, you’ll need to create a profile. The system will guide you step-by-step to gather your details and set up your account.
Step 3: Link Your Bank Account Mention your bank name to link your account. This allows the system to verify and initiate your UPI setup.
Step 4: Get Your UPI ID Once your bank is verified, a unique UPI ID will be assigned to you, usually in the format mobile.voice@psp.
Step 5: Set Your UPI PIN You’ll need to set up a UPI PIN to secure your transactions. This involves entering your debit card details and OTP verification.
Step 6: Ready to Transact After setting up your UPI PIN, you’re ready to start using UPI123PAY. You can now transfer money, recharge your phone, or even check your account balance—all via IVR.
Different Payment Methods Using UPI123PAY
UPI123PAY offers multiple ways to make payments, providing flexibility and accessibility for feature phone users.
- IVR-Based Payments: Call a predefined IVR number, follow the voice prompts, and complete your transactions securely. This method offers multiple language options, making it accessible to users across India.
- Missed Call Payments: Give a missed call to a number assigned by the merchant. You will receive a call back to authenticate the transaction by entering your UPI PIN. This approach is ideal for those who prefer a simple and hassle-free way to pay.
- App-Based Functionality: Feature phone users can access a lightweight app that allows them to perform various UPI functions, similar to smartphone apps.
- Sound-Based Payments: UPI123PAY also supports sound-based payments using Tone Tag’s VoiceSe technology, which allows contactless payments through sound waves. Simply tap your phone to the payment device, enter the amount, and validate with your UPI PIN.
Navigating the UPI123PAY IVR Menu
Once registered, you can use the IVR to access a range of banking services:
- Press 1: Money Transfer – Send money to any bank account.
- Press 2: Balance Check – Check your current bank balance.
- Press 3: Mobile Recharge – Recharge your mobile number easily.
- Press 4: NETC Recharge – Recharge your FASTag for toll payments.
- Press 5: Settings – Manage settings, such as changing your UPI PIN.
With these simple options, UPI123PAY makes transactions as easy as pressing a few buttons.
Benefits of UPI123PAY for Different Users
UPI123PAY brings significant advantages for individuals, merchants, and banks alike:
- For Users: Provides access to digital payments for people who don’t have smartphones. The IVR service is available in multiple languages, making it user-friendly across the country.
- For Merchants: Accept payments from customers without internet access, which resolves cash handling and cash-on-delivery issues. This is especially useful for small businesses in rural areas.
- For Banks: Extend digital payment services to remote locations, improving financial inclusion and customer reach.
How UPI123PAY Differs from Standard UPI
While traditional UPI requires a smartphone and internet access, UPI123PAY is designed specifically for feature phones, enabling them to carry out almost all UPI functions except for QR code scanning. This feature makes UPI truly inclusive, bringing digital banking to millions of Indians who use feature phones.
Frequently Asked Questions (FAQs)
Q: Do I need an internet connection to use UPI123PAY? A: No, you do not need an internet connection to make payments using UPI123PAY.
Q: What happens if I enter the wrong UPI PIN? A: If the wrong UPI PIN is entered, the transaction will fail. Multiple incorrect attempts may temporarily block your account from making payments.
Q: Is there a transaction limit for UPI123PAY? A: Yes, the daily limit is ₹1,00,000, while the per transaction limit is ₹10,000.
Q: What should I do if the money is debited from my account but not received by the beneficiary? A: If the transaction fails and the amount is debited, the funds will usually be refunded to your account. If it takes longer than expected, contact your bank’s customer support.
Conclusion
UPI123PAY is a significant step towards making digital payments accessible to all, including those who do not have access to smartphones or the internet. With its easy-to-use features and multiple payment methods, UPI123PAY is empowering millions of Indians to participate in the digital economy. Whether you need to transfer money, recharge your mobile, or check your balance, UPI123PAY is making it easier than ever—all with just a feature phone.
