December 19, 2025 · 9 mins read
Santosh Kumar
Digital payments have also burgeoned at an astonishing rate in India, also powered by UPI. For a lot of people, scanning a QR code or tapping a phone screen is second nature. But not everyone has a phone or a reliable connection. Millions of users still have one of the simple feature phones or are in regions where mobile data remains unreliable. This digital divide resulted in the launch of a simple and powerful solution – UPI 123Pay.
UPI 123Pay means users can make UPI payments without the internet. It’s aimed both at feature phone users and anyone interested in a secure digital payment alternative that doesn’t rely on mobile data. Leveraging familiar channels such as missed calls and IVR, UPI 123Pay opens up cashless payments to a much broader population.
UPI 123Pay is an offline mode payment system launched by NPCI. The title derives from the easy dial-in system users adhere to when activating trades. Rather than launching an app and logging on, users are engaging with an automated voice system or leveraging basic phone commands.
And the essence of 123Pay UPI is inclusion. Though smartphone-based UPI apps serve urban and semi-urban users, a significant portion of the population continues to use feature phones. UPI 123Pay fills this void by enabling users to tap into the UPI ecosystem via feature phones.
This system operates via collaborations among banks, telecom providers and NPCI. It links a user’s bank account to their mobile number and allows them to transact using voice or keypad. And even if you’re passing through a dead zone with no data, you can still transact money with this service.
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India’s digital payment journey has been commendable, but also revealing of access asymmetries. Internet access is uneven. A lot of users will have a mobile phone, but not necessarily a smartphone. Still others may have smartphones but small data packs or choppy networks.
UPI 123Pay was launched to make sure that digital payments are not limited to only those with premium devices and constant connectivity. It also reinforces the efforts of financial inclusion by allowing farmers, senior citizens, small shop owners and rural households to make cashless payments.
It’s also a backup for smartphone users. If your phone battery is dead, your data is spent, or your app is unresponsive, UPI 123Pay can still assist you with vital payments.
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But here’s the really cool thing about UPI 123Pay — it doesn’t require mobile data or wi-fi. Instead, it runs over telecom voice networks and basic signalling.
When you use 123Pay UPI, you’re essentially talking to a robot bank using your phone’s dialer. The system authenticates you through your mobile number, bank information and UPI PIN. Once the authentication is complete, the transaction goes through the UPI network in the background. Since the interaction is over voice or missed calls, no internet access is necessary. This ensures the service is dependable in low-connectivity regions.
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UPI 123Pay opens up several options for users to decide what is convenient. Every technique is easy and instinctive.
A popular approach is the IVR or interactive voice response system. Users simply dial a dedicated number from their registered mobile number. The system is available with voice instructions in different languages. You can choose options with your keypad, key in the amount and authorise the payment with your UPI PIN.
Another method involves missed calls. You can do this, for instance, by giving a missed call to a number. The system calls you back and walks you through the transaction.
It also has a sound-based alternative where you can make payments by listening to merchant-generated tones. This approach comes in handy for tiny boutiques and food carts that prefer a fast-swipe payment procedure without any smartphones involved.
These options guarantee that even users who aren’t very comfortable with technology can still use UPI 123Pay with confidence.
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There are a few prerequisites before you start using UPI 123Pay. You require a mobile number associated with your bank account. Your bank should be enabled for UPI 123Pay services. Most major banks in India are already on board.
Now, after confirming your eligibility, you have to set or verify your UPI PIN. This is typically via your bank or the sign-up process. The UPI PIN serves as your security key and makes sure that transactions are approved solely by you.
Post setup, you can instantly start using 123Pay UPI. No app downloads or software updates.
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UPI 123Pay is apt for all users. Feature phone users stand to gain the most, since they’ll now be able to send and receive money digitally without having to upgrade. And senior citizens who get confused by smartphone apps usually don’t have a problem with voice-based systems.
Small merchants, even those in rural or semi-urban areas, can accept digital payments without purchasing smartphones or QR displays. Even smartphone users can use UPI 123Pay when the internet is down.
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UPI 123Pay adheres to the same security protocols as normal UPI payments. Each payment needs UPI PIN authentication, so money can’t be sent without permission.
Transaction limits are also used to reduce risk. Usually, the max per-transaction limits are also lower than app-based UPI. This renders the system safer for typical, day-to-day payments like groceries, fuel or utilities.
Everything goes through, and your bank statement shows, just like normal UPI payments.
Accessibility is one of the biggest strengths of UPI 123Pay. It takes out the smartphone and Internet dependency. The system isn’t hard to learn, and it’s not technical.
It also encourages safer cashless payments. Carrying cash is always a gamble, while UPI 123Pay facilitates secure digital payments even in offline rural areas.
Another advantage is reliability. Voice networks also frequently operate in spaces where data networks flounder. This also makes 123Pay UPI a reliable choice in rough situations.
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As futuristic as UPI 123Pay is, it does face some limitations. The transaction caps are lower in comparison to app-based UPI. There’s also no fancy features like bill splitting, transaction history visualisations or merchant offers.
It's also slower than scanning a QR code. Because the transaction is all through voice prompts, it might take a little longer to complete.
These aside, the service nails its main function of allowing simple offline digital payments. UPI 123Pay and what the future of digital payments looks like
UPI 123Pay is a major advancement towards accessible digital payments. Over time, as the technology develops, it might become even more polished, with improved voice recognition and more languages.
It provides a model for other countries confronting similar connectivity issues. Having demonstrated that digital payments don’t require a smartphone, India has opened up the potential for fintech.
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UPI 123Pay is elegant but powerful, an extension of the UPI ecosystem. It demonstrates that digital payments can be accessible, secure and user-friendly even without connectivity. By leveraging voice calls, missed calls and keypad inputs, it delivers cashless convenience to millions of users who were previously shut out.
Be it for feature phone users, senior citizens, mom and pop stores or even a back-up payment option, 123Pay UPI proves to be a worthy use case. And as digital payments continue to gain momentum, services like UPI 123Pay guarantee that nobody is excluded.
UPI 123Pay is the first offline UPI payment to send and receive money without internet. It also functions on feature phones via voice, missed calls and IVR.
Yes, you CAN use it on a smartphone too, but it’s primarily aimed at feature phone users or when you’re off the ‘net.
Yes, it is secure. All transactions are UPI PIN authenticated and have the same safety standards as normal UPI payments.
Few, if not most, big banks in India support UPI 123Pay. But again, check with your bank.
The transaction limit is typically less than app-based UPI, so it is appropriate for small to medium-value payments.
No. UPI 123Pay operates entirely without internet and does not necessitate a mobile application.
Yes, merchants can accept payments via UPI 123Pay, which means it’s also handy for small shops and vendors without smartphones.
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