United Payment Interface or UPI has become the leading online payment service in India. The interface developed by National Payments Corporation of India (NPCI) is a round-the-clock instant payment system that allows users to transfer money between two bank accounts without sharing bank details in real time. Seeing its success, NPCI launched UPI Lite and UPI 123Pay. The former is an on-device wallet, while UPI 123Pay is an offline version of United’s payment interface for feature phones. Here’s everything you need to know about UPI Lite and UPI 123Pay:
What is UPI Lite and UPI 123Pay?
UPI Lite and UPI 123Pay is an extension of UPI service. They can also send and receive money online; However, their characteristics are slightly different. Scroll down to know how UPI Lite and UPI 123Pay differ from each other and what purpose they serve.
UPI Lite is an on-device wallet like the wallets of PayTM, Freecharge, MobiKwik and other payment apps. It is Rs. Designed to facilitate transactions of small denominations below 200. Through UPI Lite, users can add funds and send small-value payments in real-time without internet connection and UPI PIN. UPI Lite processes transactions offline only while doing debit. For credit, users are initially required to be online. But, don’t worry, NPCI plans to make all transactions completely offline through UPI Lite, including debit and credit.
But it is worth noting that the feature is currently enabled only on the BHIM app. Additionally, customers of only eight Indian banks can use the UPI Lite facility through the BHIM app. These banks include HDFC Bank, Kotak Mahindra Bank, State Bank of India, Utkarsh Small Finance Bank, Canara Bank, Indian Bank, Punjab National Bank and Union Bank of India.
UPI 123 Payment
UPI 123Pay differs from UPI Lite in that it is enabled for feature phones and works even without internet. The UPI 123Pay feature phone allows users to make payments using any of the following options: IVR-based payment solution, missed call, sound-based technology and payment app.
UPI 123Pay is completely free, which means no transaction charges till now. Additionally, the payment platform supports seven languages namely English, Hindi, Kannada, Tamil, Bengali, Malayalam and Telugu.
How UPI Lite differs from UPI 123Pay
|UPI Lite||UPI 123 Payment|
|An on-device wallet feature that allows users to make real-time small-value payments without using a UPI PIN||Integrated Payments Interface A feature phone option that allows you to make payments|
|Can only be used on smartphone||Compatible with feature phones|
|UPI Lite is partially offline||You don’t need an active internet connection|
|1 payment gateway||4 Payment alternatives|
How UPI Lite and UPI 123Pay work
Both UPI Lite and UPI 123Pay follow a different approach. Read on to know how they work:
You need to download and install the Bheem app on your smartphone.
- Open the app and login to add a bank account for UPI transactions.
- Navigate to the bottom of the page and click on the UPI Lite banner.
- Tap on “Start Now”.
- Enable UPI Lite.
- Enter the UPI PIN.
- Your UPI Lite e-wallet will be activated after the amount is transferred.
UPI 123 Payment
UPI 123Pay works through missed call, IVR and app. If you have the app installed on your feature phone, you can register yourself and make payment without internet. Otherwise you have to use IVR and miss call services.
However, to make a payment, you first need to link your bank account and set up a UPI PIN. Here’s how it’s done:
- From your registered mobile number, call any IVR numbers – 08045163666, 08045163581, 6366200200
- Select your language. UPI 123Pay currently supports three languages: Hindi, English and Kannada
- Select your bank
- Enter the debit card details
- setup pin. This way your account will be registered through UPI 123Pay
Frequently Asked Questions
1. Are UPI Lite and UPI 123Pay safe to send money?
Sending money through above mentioned portals is completely safe. For the former, you need a smartphone; For the latter, you can use a basic feature phone.
2. Can you use UPI 123Pay on smartphone?
According to NPCI, UPI 123Pay is a suite of solutions developed for non-smartphone or feature phone users to use UPI without internet connectivity. So, I guess you can’t use UPI 123Pay on smartphone.
3. What is the upper limit of UPI Lite?
According to the release, users can use UPI Lite at a time to make a maximum of Rs. 200 can be sent