There are more than 290 million people in India who own a basic phone which cannot process digital payments. That’s the reason NPCI introduced the revolutionary UPI 123Pay in 2022 that gave access to UPI payments to all basic (non-smart) phones. This innovative introduction also solved the problem of those who didn’t have access to internet or those staying in areas which had poor connectivity.

What is UPI 123Pay?

UPI 123Pay is a specifically designed feature that gives access to non-smart phones to make payments via UPI. It eliminates the need for internet access which is one of its most advantageous features. To activate, the user needs to create a unique UPI ID. Once created UPI payments can be processed.

Steps to Create a UPI ID on Non-Smart Phones

Here are the steps to create your own unique user ID and start using UPI 123Pay on a basic phone:

Step 1: Users have to dial *99# from their phones and choose their preferred bank.

Step 2: Next, they have to enter the last six digits of their debit card followed by the expiry date of the card.

Step 3: After receiving the OTP, they need to create a 4-6 digit UPI Pin (The pin needs to be remembered for every transaction that is done via the account)

Step 4: Once the UPI Pin is created, the UPI account will be activated.

Transacting Via UPI 123PAY

There are multiple transactions or bill payments that can be processed via UPI 123PAY like mobile recharge, LPG gas refill, FASTag recharge etc.

Procedures to Make Payments Using UPI 123PAY

1. IVR Number

Step 1: User needs to call the UPI 123PAY IVR number – 080 45163666, 080 45163581 & 6366 200 200.

Step 2: Choose the activity that needs to be carried out which is displayed on the phone screen.

Step 3: Complete the transaction by entering the UPI Pin.

2. Missed Call

Step 1: The merchant creates a token using customer’s mobile number, amount and bill number.

Step 2: The customer needs to give a missed call on the number that is given by the merchant.

Step 3: The merchant will call back the customer immediately after the missed call goes through.

Step 4: The customer has to enter the UPI Pin to process the transaction.

3. Sound Technology

Step 1: Users have to call on IVR number 6366 200 200 to initiate the transaction.

Step 2: The phone has to be tapped on the merchant’s device (POD) followed by entering ‘#’ on hearing a tone.

Step 3: User needs to enter the amount and enter the UPI Pin to process the transaction.

Advantage of UPI 123PAY

There are many advantages of UPI 123PAY to users which are mentioned below:

Quick Payments: The UPI 123PAY processes quick transactions on basic phones which are not equipped to handle digital payments like smart phones.

Eliminates Internet Use: UPI 123PAY does not require internet connection to process payments unlike other conventional UPI modes. There is no need of a smart phone to use this feature.

Multi-Language Option: UPI 123PAY users can choose their preferable regional language other than Hindi and English which enhances accessibility.

Security: Transactions are secure as two-factor authentication is used during payments, eliminating the chances of online frauds.

FAQ’s

What are the Transaction Limits to use UPI 123PAY?

NCPI has increased the per transaction limit from Rs.5,000 to Rs.10,000 during the 2024 festive season.

Can a user link multiple bank accounts on UPI 123PAY?

No, there is no provision of linking multiple bank accounts with UPI 123PAY. Users need to deregister their existing account and create a new one in case they want to add a new bank account.

Are there any charges to be paid for using UPI 123PAY?

No, there are no charges for using this feature as it is completely free to use.

In conclusion, UPI 123PAY is a significant step forward towards financial inclusion in the country. By enabling UPI transactions on basic phones, digital payments have been brought in front of the vast population that stays in rural India. It is also a boon for users who live in areas of poor or no internet connectivity.

There are various features that make this technology accessible to people who are not gadget savvy. Moreover, it is equipped with robust security, multi-language support and zero transaction or usage charges that makes it all the more effective. As this technology continues to evolve and grow, reaching more users, it will transform the face of digital economy in India.