RBI to launch UPI services for non-smartphone users

UPI '123Pay is being launched by the Reserve Bank of India to provide UPI services for users who have less advanced mobile phones. Additionally, users will no longer need an internet connection in their phones to access this feature, making UPI payments totally offline.

At present, efficient access to UPI is available only on smartphones. The payment method can also be accessed through NUUP (National Unified USSD Platform) using the shortcode of *99#, but, this option is cumbersome and not popular. Considering that there are more than 40 crore feature phone users in the country, UPI 123Pay will materially improve the options for such users to access UPI-based payment services.

UPI 123Pay includes four distinct options as below:

1. App-based Functionality: An app would be installed on the feature phone through which several UPI functions, available on smartphones, will also be available on feature phones.
2. Missed Call: Feature phone users will be able to access their bank account and perform routine transactions such as receiving payments, transferring funds, regular purchases, bill payments, etc., by giving a missed call on the number displayed at the merchant outlet. The customer will receive an incoming call to authenticate the transaction by entering UPI PIN.
3. Interactive Voice Response (IVR): UPI payment through pre-defined IVR numbers will require users to initiate a secured call from their feature phones to a pre-determined number. Users will need to complete UPI on-boarding formalities in order to start making financial transactions without an internet connection.
4. Proximity Sound-based Payments: This feature uses sound waves to enable contactless, offline, and proximity data communication on any device.

The RBI has also announced a 24×7 helpline, DigiSaathi, to address the queries of digital payment users across products. The helpline will assist users with their queries on digital payments via website & chatbot facility, and through toll-free calls.

UPI has emerged as one of the most popular modes of payments in India over the past few years, especially after demonetisation and the Covid19 pandemic. It is the single largest retail payments system in the country in terms of volume of transactions.

In 2021, UPI touched record-high transactions, both in volume and value terms. As per the National Payments Corporation of India (NPCI), UPI processed more than 38 billion transactions, amounting to ₹71.59 trillion. With the launch of UPI on feature phones, the transactions are projected to grow even further in 2022.