Definition
UPI123Pay
UPI123Pay is an RBI and NPCI service that lets feature-phone users make UPI payments without a smartphone or internet, through IVR, missed calls, apps or sound-based tech.
UPI123Pay brings UPI to basic feature phones using four modes: calling an interactive voice response (IVR) number, app-based functionality on certain feature phones, missed-call-based payments at merchant outlets, and proximity sound-based payments.
It is part of the RBI's push for financial inclusion, extending digital payments to users without smartphones or stable data connections, especially in rural and semi-urban India.
Users link their bank account and set a UPI PIN once, then transact by following voice or menu prompts, making cashless payments accessible to a much wider population.
Related terms
- UPI Lite XUPI Lite X is the offline extension of UPI Lite that uses near-field communication so two phones can transfer small amounts even without internet connectivity.
- Financial InclusionFinancial inclusion is the goal of ensuring all individuals and businesses, especially the underserved, have access to useful, affordable financial products like accounts, credit and payments.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.