123Pay by NPCI | Sahjik Finserv Newsletter


123Pay by NPCI - Newsletter


The RBI's vision is to offer accessible, affordable, safe, secure, reliable and efficient payment systems to all Indians. India has made massive strides in this direction, with NPCI driving robust products like UPI, NEFT, RTGS, IMPS and more to cater to the needs of retail and B2B segments. 

Amongst the most successful is UPI, which revolutionized payments for the common man. Today, it accounts for almost 20% of all retail digital payments. UPI achieved this feat primarily due to the following factors:

  • Affordable Smartphones and wide usage 
  • Affordable internet and penetration pan India 
  • Pandemic push for Digital transformation and rise of digital payments
  • All round focus on Digital literacy

However, this still leaves behind a segment of people who still find a smart phone beyond their reach. To address this audience, the NPCI has introduced 123Pay, which allows feature phone owners to access UPI without the need of internet connectivity. They can do so through the following channels:

Phone Network / IVR based:
Interactive Voice Response (IVR) is an automated telephone system which allows users to access information by simply calling a designated number for the service they wish to avail. It offers various language offers to address the vernacular diversity of India. Users can transfer money, check their balance, recharge their mobile, make bill payments and much more.





UPI App on Feature Phone: A special UPI app has been created to function on feature phones to allow everyone to avail the simplicity that UPI offers. The app will come pre-installed in the users phone, and will offer majority of the functionality that the UPI smartphone app has, except Scan and Pay, which will also be enabled in the future. 

Proximity Sound-based Payments: Now, merchants too can accept digital payments from feature phone users. When a user is checking out, they give a call to a designated number and choose to ‘Pay to Merchant’. Then, they tap their phone on the merchant’s ‘pod’ device, which uses NFC technology and allows user to enter the amount that is to be paid and UPI Pin. This is akin to the ’Scan and Pay’ UPI method. 


Missed Call based Payments: This approach is also to make merchant transactions seamless. The merchant creates a token with the customer’s number and bill amount. The customer then gives a missed call to a number which is pre-assigned to the merchant, and immediately receives a call. They then simply enter their UPI pin and complete the transaction. 



123Pay will enable the following use cases:

  • P2P transfers
  • EMI Repayments
  • Insurance Payments
  • Fastag Recharge
  • COD collection

and many more.

This will truly transform Digital Payments for Bharat, and help achieve the RBI’s vision of payments for everyone.

 

Sources: 

123Pay: The Future of Inclusive Payments 

RBI Annual Report 2021 


Regards,
Sahjik Finserv and Team

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