123PAY A UPI Based Payment System Has Been Launched By RBI For Feature Phone

123PAY A UPI Based Payment System Has Been Launched By RBI For Feature Phone

The Reserve Bank of India has launched 123PAY, a UPI-based payment system for feature phone users.

Previously, feature phone owners could only make digital payments via USSD by dialing *99# and following the banking system's numeric interface. Notably, the technology was prone to malfunctions and was only available to a few mobile providers.

In India, the Unified Payments Interface (UPI) has exploded in popularity during the previous five years. It functioned as a go-to payment option for smartphone owners, particularly during the Covid-19 epidemic. UPI transactions have continually grown month after month, according to the National Payments Corporation of India (NPCI).

According to the latest data, the UPI system is used by 304 banks, and in February 2022, 4,527.29 million transactions were processed. Last month, UPI transactions totaled Rs 8.26 lakh crore in value. Even still, because UPI required a smartphone, a huge percentage of India's population was unable to utilize it. The Reserve Bank of India (RBI) introduced 123PAY, a new payment mechanism for feature phone owners, to fill the void. 123PAY, according to the RBI, will aid India's objective of becoming a paperless economy. The payment mechanism was unveiled at a special RBI event by RBI Governor Shaktikanta Das. He said that the new platform will assist UPI in reaching out to those who had previously been excluded from the digital payment scene. It will contribute to that group's financial inclusion in the digital payments ecosystem. In the following months, NPCI wants to reach a billion UPI transactions every day. By itself, the new mechanism will assist 40 crore feature phone users in connecting to the UPI system. Along with 123PAY, the governor developed a hotline for digital payments called "DigiSaathi."

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What is 123PAY and how does it work?

Previously, feature phone owners could only make digital payments via USSD by dialing *99# and following the bank's numeric interface. Notably, the technology frequently produced issues and was only available to a few cell providers. As stated during the introduction, the new 123PAY system would bridge this gap using four technologies. Interactive voice response, or IVR, applications for feature phones, missed call-based payments, and proximity sound-based payments are the four technologies.

How to use 123pay?

Follow these steps to learn how to utilize this feature:

From your phone,

1. dial the number 08045163666.
2. Choose the language you want to use.
3. To transfer money, press the '1' key on your phone.
4. By mentioning the bank's name, you may choose which bank is associated with UPI.
5. To validate the information, press the '1' key.

The Interactive Voice Response (IVR) System

Users must call 08045163666 from the phone associated with their bank account to use the IVR system. N Digital News experimented with a live IVR system to evaluate how it functions. When you call the number, you will be given the option of selecting your preferred language. After you've chosen a language, you'll be given the option to link your bank account to the 123PAY system. 123PAY's partner bank is IDFC Bank.

The IVR will prompt you to give the name of the bank where your mobile phone is linked to a bank account. It will check the account number after confirming the bank name. It will disclose the last two digits of the bank account as well as the account holder's name once it has discovered the account number. If you wish to link it to the UPI system, you'll be asked. After you've chosen the option, you'll be prompted to establish a UPI PIN. The system will provide you with the freshly created UPI ID once it is completed. Because the PIN had already been entered in our situation, it asked us to choose what we wanted to do next. Fund transfer, check balance, deregister bank account, deregister UPI, change UPI PIN, make EMI payments, make utility payments, and more are among the choices offered.

System for missed calls

This system has two possibilities, and merchants will mostly employ one of them. In this scenario, you must make a missed call to the merchant's number, and you will be contacted to complete the transaction. Sound-based payments are another alternative, in which the system recognizes the sound made by a device at the store and initiates contactless payment via the user's phone.

123PAY is initially available in Hindi and English, but local languages will be added later. The RBI has also established special hotline lines 14421 and 18008913333, which are available 24 hours a day, seven days a week.