Category: DIGITAL TRANSACTIONS

The Reserve Bank of India (RBI) has launched Unified Payments Interface (UPI) service for feature phones called UPI123Pay.

At present, efficient access to UPI is available on smart phones. Considering that there are more than 40 crore feature phone (e.g. Nokia dabba phone) mobile subscribers in the country, UPI123pay will materially improve the options for such users to access UPI.

With this launch of new UPI for feature phones, Das added that it would help the National Payments Corporation of India (NPCI), an umbrella organization serving retail payments and settlement systems in India, reach its goal of processing a billion transactions a day.

UPI123Pay will also assist RBI to achieve its objective of a less-cash economy and financial inclusion.

Features:

Feature phone users will now undertake a host of transactions based on four technology choices. These include calling an IVR (interactive voice response) number, app functionality in feature phones, missed call-based approach, and also immediacy sound-based payments, the RBI stated.

Such users can make payments to friends and family, pay utility bills, recharge the FAST Tags of their vehicles, pay mobile bills, and allow users to check account balances. Adding customers will also link bank accounts and set or change UPI PINs.

Further, the 24×7 helpline ‘Digisaathi’ will assist the callers/users with their digital payments queries via the website and Chabot.

Users can visit www.digisaathi.info or call 14431 and 1800 891 3333 from their phones for their digital payments and grievances queries.

Distinct options:

App-based Functionality: App could be installed on the feature phones, allowing several UPI functions open on smartphones to be functional on feature phones.

Missed Call: By dialing a missed call on the number displayed at the merchant outlet, feature phone users will be capable of accessing their bank account and performing routine transactions such as receiving, transferring funds, regular purchases, bill payments, and so on. The customer will accept an incoming call asking them to verify the transaction by entering their UPI PIN.

Interactive Voice Response: UPI payment via pre-defined IVR numbers would necessitate users making a secure call from their feature phones to a pre-determined number and completing UPI on-boarding formalities before they could begin making financial transactions without the internet.

Proximity Sound-based Payments: This technology utilizes sound waves to permit contactless, offline, and proximity data communication on any device.

How to use UPI123Pay?

A shared server site library permits feature phone holders to use digital processes to transact.

The UPI123Pay feature does not require internet connectivity to transact online. Additionally, this service is available in various Indian languages.

The smartphone and feature phone users can now effortlessly transact digitally with the new facility.

UPI for feature phones is a three-step process call, choose and pay.

Before initiating to make the payment, it is required that the user links their bank account with the feature phone.

Further, using his/her debit card, they will be required to set a UPI PIN.

Once the UPI PIN is created, the user can use their feature phone for transactions just like a smartphone user.

The feature phone user needed to call on the IVR number and choose the phone relying on the service mandated such as money transfer, LPG gas refill, FasTag recharge, mobile recharge, balance check, etc.

To transfer the money, one will have to choose the phone number to whom money is to be transferred, add the amount, and enter UPI PIN.

To pay to a merchant, they can use an app-based payment method or missed call payment method.

They can also use the voice-based method to make digital payments.

Actual steps/ process for using UPI123Pay

#Dial the IVR number 08045163666 on your phone.

#On the IVR menu, select your preferred language.

#Now, choose the bank linked with UPI

#Press ‘1’ to confirm the details.

#Press ‘1’ to send money by using your mobile number.

#Enter the mobile number of the recipient.

#Confirm the details.

#Now, enter the amount that you want to transfer.

#Enter your UPI PIN and authorise the money transfer.

That’s it. That is how you use UPI123Pay!

Welcome to the new India.

There is a lot of buzz around “tokenisation” nowadays.

The word sounds complex but let us decode it in simple terms. A final verdict awaits you at the end.

The way we pay money through credit or debit cards on Amazon, Flipkart, Uber, Zomato etc, will not be the same anymore.

Current scenario

When we enter the card details for the first time, the website gives us an option to save the card details (Card number, name, expiry) for ease of future use.

Let’s face it, we all check that box for convenience. No one wants to enter the 16 digit card number and details again.

What is the need for change?

The card details are stored with the merchants and this leads to an issue – in case hackers steal your data (and data leaks are alarmingly increasing nowadays), your data is at risk.

Your money is not really at risk – the hackers cannot directly steal money from your cards since your CVV (Card Verification Value) pin is not stored in the data.

But even the details of your cards pose as a privacy threat and can be misused in combination with other data.

Welcome to tokenization!

The Reserve Bank of India brought in CoF (card on file) tokenization guidelines that mandate replacing actual card data with encrypted digital tokens to facilitate and authenticate transactions.

Tokenisation is nothing but replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card and token requestor.

A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.

Now what?

You would no longer need to (or allowed to) save the 16-digit card number and the card expiry date on the merchant website.

On the backend, the card’s CVV number will no longer be required for digital payments making the entire system safe and secure.

If you choose not to opt for tokenisation, you will have to manually enter your card details every time you transact.

How does card tokenization work?

On the end-user front, nothing changes. Users need to enter their card details and opt for tokenization while making online transactions at the check-out window of the shopping portal.

However, merchants will now need to forward the token to respective banks or the card networks. A token is produced and sent back to your merchant, which then, at that point, saves it for the end-customer. As customers, we don’t have to recall the token as the experience is not going to change for you while making digital payments.

Is the tokenization service free?

Tokenization is absolutely free for users, who can tokenize any number of cards. However, only domestic cards fall under the current guidelines.

Tokenization is not applicable to international cards as of now.

How will it benefit users?

Customers need safety and security at any place they shop. In this time where digital fraud presents dangers all through the economy, building trust and connection with clients starts with keeping their payment and other individual information safe.

Tokenization shields businesses from the negative financial impact of data theft as even if there is a breach, the merchant would not have important data that can be stolen.

Tokenization can’t shield your business from an information and data breach—yet it can diminish the bad outcomes of any possible breach.

When will it come into effect?

This was initially slated to come into effect from 1 January 2022. However, the payment systems are not yet geared to accept tokens. Hence, the Reserve Bank of India has extended the date to 1 July 2022.

Final verdict

Whenever a new compliance is mandated, we fear a new headache.

But this is an exception to the rule.

The tokenization will only make it easier for end-users to transact online. No need to remember those CVVs.

There is no effort from end users for tokenization except that we need to do it for the first time. Thereafter, the token will transact automatically.

As with any new rule, the effectiveness lies in its implementation.

We can hope that tokenization will be a smooth ride and make online transactions safer, faster and reliable.

Thank you for reading!

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