All You Need to Know About Using UPI 123Pay in 2025

UPI 123Pay is a popular digital payment solution in remote areas of India with limited internet accessibility. It allows users with feature phones to make secure digital payments without needing a smartphone or internet access. Thus, the diverse Indian population can engage in digital payments without any hassle for instant purchases and transactions. Explore the benefits of this facility followed by the process to set it up with your feature phone. 

What Is UPI 123Pay?

UPI 123Pay is a payment solution that allows feature phone users to pay immediately even in the absence of a smartphone or internet. NPCI (National Payments Corporation of India) developed the application in 2022 in collaboration with the Reserve Bank of India. It aimed to provide UPI payment solutions to the masses with no access to the internet.

Users of this facility need to link their bank account to the feature phone before setting the UPI PIN. On successful completion of the necessary prerequisites, users can use the UPI ID for payment.

Setting Up RBI UPI 123Pay ID

Here are the steps to link UPI 123Pay to the feature phone:

Step 1: Dial *99# from your feature phone.

Step 2: Select the bank where you have an account from the displayed options.

Step 3: Fill in the last 6 digits of your debit card and its expiry date.

Step 4: Set your UPI PIN for secured transactions. 

Step 5: You now can use the PIN and the payment solution for instant payments. 

How to Make Payments Using UPI 123Pay? 

There are four easy ways to make payments without needing an internet connection via UP 123Pay. Let’s find out how: 

• IVR Number: You can dial up IVR numbers 080 45163666, 080 4516 3581 and 6366 200 200 to initiate transactions. The user will be directed to undertake the necessary steps to complete the necessary transaction. 
• Missed Call: The concerned bank provides a missed call number where the user needs to call for transactions and payments. Banks generate a token that the UPI user needs to authenticate using the pre-set UPI PIN before completing a transaction. 
• OEM Integration: Certain feature phones provide a UPI app that the user can use to make payments. Notably, even though the app might seem similar to other internet-driven UPI apps, it does not allow users to scan and pay.
• Sound-based Technology: This UPI allows sound-based payment wherein the user needs to tap the phone into the merchant’s device and enter the UPI PIN to complete a transaction. 

Pros of Using UPI 123Pay

The benefits of using UPI 123Pay are as follows:

• Individuals using feature phones can make digital payments without the need for the internet or smartphones.
• Users can choose a convenient payment method from IVR, OEM, missed call or sound-based payment methods.
• The two-factor authentication of this tool ensures secured transactions for users.
• A wider population of India can access the service as it is available in multiple regional languages.
• Individuals in remote areas with interrupted internet accessibility can make digital payments seamlessly.
• Indian merchants can avoid cash transactions by accepting digital payments even from non-smartphone users.
• Users can enjoy an increased UPI 123Pay limit from ₹5,000 to ₹10,000 per transaction. Notably, the UPI 123Pay limit per day is ₹1 lakh for each user.

Difference Between UPI 123Pay and Other UPI Apps

Here are the differences between UPI 123Pay and other UPI interfaces:

Final Word

UPI 123Pay has brought a significant shift in the digital payments landscape. It promotes financial inclusivity across India’s diverse population. It boosts digital payments in remote and rural India, reducing cash transactions for merchants. This ensures transparency for customers as well as merchants in terms of financial record keeping.