RBI has introduced a new mode of payment for Indian citizens. No internet connection will be required for this payment method. Paying through UPI is already available through USSD method. However, this new payment method will be easier to follow. The government has also introduced a new Digi Saathi platform which will answer all the questions regarding digital payments.
The Reserve Bank of India has launched this new digital payment system to target over 400 million feature phone users in the country. NPCI has named this new method for UPI payment as 123Pay. This new method opens up multiple digital payment options for users across the country.
How to register for the new service?
Just as smartphone users activate their UPI transactions, feature phone users will also have to use their bank debit card to link their bank account with their feature phone. Then they have to set a UPI PIN code. Once this is done, there are four new options using which users can conduct both financial and non-financial transactions.
What are the new payment methods?
During the launch ceremony, Deputy RBI Governor T Rabi Shankar explained how the new 123Pay method would work for feature phone users.
Apps on UPI Phone: Like their smartphone counterparts, now feature phones will also support certain UPI apps. The details regarding the applications have not been revealed yet. The payment method through the app is expected to be a similar experience to the popular UPI app on smartphones.
IVR based or voice based UPI transactions: To use this method, the user has to call the IVR number. On a call, an automated voice will direct the user to the correct option. You will have options like: Money Transfer, LPG Gas Refill, Fastag Recharge, Mobile Recharge, EMI Repayment and Balance Check. You just have to enter the correct option and then select the number you want to make the payment. In the last step, you just need to enter the amount and UPI PIN.
Voice Based Payment: This is a method that is almost unheard of in the payments sector. Feature phones will transfer money using sound waves. In the demo video, RBI shows a small smart speaker-like device that can act as a receiver. After entering his UPI PIN, the user just needs to tap on the machine to make the payment.
Missed Call-Based Transactions: Missed call method is also an option where all you have to do is give a missed call. To get options to do various financial and non-financial transactions. This method will be similar to IVR based technology.
The first appeared on BGR India after the RBI introduced a new UPI payment method that would not require an internet connection.