The Reserve Bank of India (RBI) launched  UPI 123Pay to integrate thousands of feature phone users into the digital payment system.

The new payment option, dubbed Unified Payments Interface (UPI) for feature phones, will allow users to make quick payments without the use of smartphones or internet connections. Experts feel that this game-changing move will simplify the way India transacts.

In recent years, UPI has become the most widely used digital payment method. With the launch of UPI 123Pay, an estimated 30 crore feature phone users will be able to participate in a safe digital payment system.

What is UPI 123Pay and how does it work?

Briefly described, UPI 123Pay enables people to send money and conduct other financial transactions using feature phones. To send or receive money, the system does not require an internet connection. To initiate and execute UPI transactions, users can use a simple three-step process. 

How to use UPI 123Pay on feature phones?

Users no longer need a smartphone or an internet connection to make UPI payments.  To utilise the UPI service, clients only need to link their bank account with their feature phone and enter their debit card information. Missed calls, app-based functionality, Interactive Voice Response or IVR, and proximity Sound-based payments are all options for consumers with feature phones.

Interactive Voice Response (IVR):
 
IVR will be able to make financial transactions without an internet connection after the UPI onboarding processes are completed.

Proximity Sound-based Payments: 

This technology uses sound waves to allow contactless, offline, and proximity data communication on any device.

Where can you use UPI 123Pay?

Individuals can use the UPI 123Pay option to make payments in stores, transfer money, refill LPG gas connections, recharge mobile phone numbers, recharge FAST Tags for automobiles, pay utility bills, and pay EMIs, among other things. This one-of-a-kind function will also allow users to monitor the balance of their UPI-linked bank account.