Calling, selecting, and paying are the three steps of UPI for feature phones, also known as UPI123Pay.
Asmartphone or internet link is no longer a prerequisite for making Unified Payments Interface (UPI) payments. The Reserve Bank of India (RBI) has introduced UPI123Pay to connect the country’s thousands of feature phone users to the digital payment environment. The aim to launch UPI123Pay was to deepen the digital payment system in India making it more inclusive. Further, it will enhance the capacity of the service providers by allowing easy transaction methods.
RBI governor Shaktikanta Das, in his maiden speech on using UPI without Internet, said, “To further deepen digital payments and make them more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of the financial markets and enhance the capacity of service providers, it is proposed to launch UPI-based payment products for feature phone users leveraging on the Reserve Bank’s regulatory Sandbox on Retail Payments.”
Read More: Central Railway Announces 90 Holi Special Trains, Check Details Here
All required smartphone functions will be available with UPI123PAY for feature phones. The advancement of digital payments through this effort will pave the way for a cashless society and economy. In India, more than 40 crore feature phone users cannot use digital payment techniques. In light of this, the RBI has introduced a digital payment method that allows owners of feature phones to now utilise digital payment methods as well. To enable users of feature phones to trade digitally, a common server site library has been developed.
Holders of feature phones and smartphones can now simply transact thanks to the new facility digitally. Calling, selecting, and paying are the three steps of UPI for feature phones, also known as UPI123Pay. A user must connect their bank account to their feature phone before paying. Additionally, he or she will be needed to set a UPI PIN using their debit card.
The user can use his or her feature phone to conduct transactions once the UPI PIN has been established, just like a smartphone user. The user of a feature phone must dial the Inter Active Voice Response number and choose the appropriate phone based on the service needed, such as money transfer, LPG gas refill, FasTag reloads, mobile recharge, balance check, etc.
To send money, one must first choose the recipient’s phone number, input the desired amount, and then enter their UPI PIN. He/ she can use a missed call payment method or an app-based payment method to pay a vendor. He or she can use voice-based technology to make digital purchases as well. According to a news release from the RBI, UPI123Pay offers the following four options:
Read More: Why Nominee Is Important For Your Bank Account?
1- Apps Functionality: After installing an app on the feature phone, several UPI features that are accessible on smartphones can also be accessed on feature phones.
2-Missed Call: Users of feature phones can access their bank accounts and carry out routine tasks like receiving, transferring funds, making regular purchases, paying bills, and so forth by dialling a missed call on the number listed at the merchant outlet. A call will be placed to the customer requesting them to confirm the payment.
3- Inter-active Voice Response (IVR): Before users could start conducting financial operations without the use of the internet, they would need to make a secure call from their feature phones to a pre-set number and complete the UPI onboarding procedures.
4- Proximity Sound-based Payments: This innovation uses sound waves to allow offline, proximity, and contactless data communication on any device.
