In News
- The Reserve Bank of India launched a new Unified Payments Interface (UPI) payments solution for feature phone users dubbed ‘UPI123Pay’.
About
- UPI was introduced in 2016 and has become one of the most used digital payments platforms in the country.
- The volume of UPI transactions has already reached ?76 lakh crore in the current year, compared to ?41 lakh crore in FY21.
- However, at present, efficient access to UPI is available largely via smartphones.
About UPI123Pay
- UPI (unified payments interface) ‘123PAY’ is a three-step method to initiate and execute services for users which will work on simple phones.
- The new UPI-based service is designed to bring the digital payments platform closer to a significant number of feature phone mobile subscribers in the country, which is estimated to be more than 40 crore.
- Features:
- It doesn’t need an internet connection for transactions. Customers have to link their bank account with feature phones to use this facility.
- Feature phone users will now be able to undertake a host of transactions based on four technology alternatives.
- They include calling an IVR (interactive voice response) number, app functionality in feature phones, missed call-based approach and also proximity sound-based payments.
- Users will be able to make payments to their friends and family, pay their utility bills, recharge FASTags, pay mobile bills and also check their account balances and customers will also be able to link bank accounts, set or change UPI PINs.
- Benefits:
- The launch of UPI123Pay makes facilities under UPI accessible to that section of society which has so far been excluded from the digital payments landscape.
- In that way, it is promoting a great amount of financial inclusion in our economy
- Status of other countries:
- Mobile payment systems that do not rely on internet connectivity like the ones based on USSD or SMS technology were introduced many years ago and are still being used in some developing countries.
- In fact, one of the major mobile payment systems globally was introduced by Vodafone’s Kenyan associate, Safaricom in 2007.
- M-PESA, which is Africa’s leading mobile money service, operates across the Democratic Republic of Congo, Egypt, Ghana, Kenya, Lesotho, Mozambique and Tanzania, with 51 million customers making over $314 billion in transactions per year through the service, according to Vodafone.
Source:IE
