UPI 123PAY vs *99# – What’s the Difference in Offline UPI Payments?

Not everyone in India owns a smartphone or has consistent internet access, but this should not hinder their access to digital payments. To address this, the National Payments Corporation of India (NPCI), under the guidance of RBI and the Government of India, has introduced two major solutions: UPI 123PAY and *99# (NUUP/USSD service).

Both are designed to empower feature phone users and those in low-connectivity areas, but they work differently. Let’s first understand them individually and then compare them in detail.

What is *99#?

The *99# service is a USSD-based mobile banking solution launched by NPCI in November 2012. It was introduced to bring banking access to every mobile user, especially those without internet or smartphones. By dialing *99#, users can perform basic financial transactions directly from their GSM handsets. Source: NPCI

On 28th August 2014, *99# was dedicated to the nation by the Hon’ble Prime Minister as part of the Pradhan Mantri Jan Dhan Yojana (PMJDY), reinforcing its role in driving financial inclusion.

Evolution of *99#:

In simple terms:

• *USSD 1.0 = Basic banking via 99# (non-UPI)
• *USSD 2.0 = UPI-powered transactions via 99# (offline UPI)

What is UPI 123PAY?

UPI 123PAY was launched in March 2022 by RBI and NPCI to expand UPI access for non-smartphone users. Unlike *99#, it offers multiple payment modes beyond USSD. Source: RBI

Key Features:

• Interactive Voice Response (IVR).
• App-based functionality for feature phones.
• Missed call payments.
• Proximity sound-based payments.

It aims to make digital payments faster, more reliable, and available without internet.

Difference between UPI 123PAY and *99#

1. Origins & Background

*99# (NUUP – USSD Service)

• Introduced in November 2012 by NPCI, initially restricted to MTNL and BSNL.
• Expanded nationally in August 2014, supported under the Pradhan Mantri Jan Dhan Yojana for financial inclusion.
• Built on the National Unified USSD Platform (NUUP), which allows banking transactions over GSM network using USSD codes.
• Available in around 13 Indian languages, making it more accessible to rural users.
• Through its USSD 2.0 iteration, it became India’s first large-scale offline channel for UPI transactions.

UPI 123PAY

• Launched on 8 March 2022 by RBI and NPCI.
• Aimed at nearly 40 crore feature phone users in India.
• Designed to overcome the limitations of USSD (*99#).
• Offers four offline payment modes – IVR, missed call, OEM apps, and sound-based proximity payments.
• Supported by major banks and telecom providers, gradually rolled out across India.

2. Technical Mechanisms: How They Work

*99# (USSD 2.0)

• Users dial *99# from any GSM phone.
• Interactive text-based menu appears.
• Options include:
  • Send/Receive money using UPI ID, mobile number, or account + IFSC.
  • Check balance and last 5 transactions.
  • Set/change UPI PIN.
• Entirely menu-driven and text-based, requiring no internet connection.

UPI 123PAY’s Four Offline Methods

• Interactive Voice Response (IVR) – Users can make a secure call to a predefined IVR number, navigate voice prompts (in multiple languages), and complete payments using their UPI PIN.
• Feature Phone App (STK/OEM App) – Certain feature phones come with built-in UPI apps that mimic a smartphone-like interface for UPI tasks.
• Missed Call-Based Payments – Merchants trigger a missed call token, then the user receives a callback to authenticate the transaction with their UPI PIN.
• Proximity Sound-Based Payments – Transactions are facilitated using sound transmission—users tap their phone near a merchant’s device and enter UPI PIN to pay.

3. Transaction Limits & Authentication

*99#

• Per transaction limit: ₹5,000.
• Daily limit: As per the linked bank (generally up to ₹1 lakh).
• Authentication: Always requires UPI PIN.
• Multi-account support: Users can link and manage multiple bank accounts.

UPI 123PAY

• Initially capped at ₹5,000, increased to ₹10,000 per transaction in October 2024. Source: NPCI
• Daily cap: ₹1 lakh. Source: NPCI
• Authentication: Requires UPI PIN (two-factor authentication). Source: NPCI
• Onboarding: Debit card + PIN.

4. Accessibility & User Experience

*99#

• Works on any GSM phone, no internet needed
• Supports 13 Indian languages.
• Relies on text navigation.
• Dependent on USSD channel availability.

UPI 123PAY

• Four flexible access modes: IVR, missed call, OEM apps, sound-based.
• IVR supports regional languages for wider inclusivity.
• Sound-based method allows quick tap-to-pay without UI navigation.
• OEM apps give a familiar interface for users shifting from feature to smartphones.
• Potential limitations: occasional voice input errors and limited bank adoption in some regions

5. Strengths & Limitations