UPI 123 Payments system facilitating payments through IVR – UCO Bank

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Case Study

UPI 123 Payments system facilitating payments through IVR

Introduction:

The UPI 123Pay payment system is a groundbreaking initiative designed to extend digital financial services to users of basic feature phones, enabling secure transactions without internet access. By leveraging IVR (Interactive Voice Response) technology, it facilitates key services such as balance inquiries, money transfers, mobile recharges, and bill payments, all via voice commands or keypress.

Problem:

Enabling UPI payments without requiring internet connectivity, addressing challenges faced by users in rural and remote areas. Providing digital financial services to feature phone users who lack smartphones or advanced technology. Bridging the gap for underserved populations in tier 3 towns, rural, and remote areas, enabling access to digital banking services was a problem. Offering services in 11 regional languages to ensure accessibility for diverse demographics, especially in rural areas was also an issue.

Solution:

Identified feature phone users’ needs, defined objectives, onboarded Ultra cash as enabler, and finalized timelines for implementation and developed IVR-based UPI system with core features, supporting 11 regional languages, ensuring security and user-friendliness. Conducted pilot in rural areas, gathered user feedback, and refined the system to enhance functionality and usability. Launched across tier 3 towns and rural areas, supported by training programs and awareness campaigns to ensure adoption.

Challenges:

Integrating the IVR-based system with existing UPI and banking infrastructure was complex, requiring extensive coordination and testing to ensure seamless operation. Encouraging feature phone users to adopt a new digital payment system was challenging, requiring significant educational efforts and awareness campaigns. Ensuring accurate translations and voice prompts in 11 regional languages presented challenges in maintaining consistent quality and user experience. Also ensuring that the system could handle a growing number of users across diverse regions without performance degradation posed an ongoing challenge.

Innovation:

The UPI 123Pay solution was essential to bridge the digital divide and promote financial inclusion for feature phone users in rural and remote areas. With limited internet access and smartphone penetration, millions were excluded from digital payment ecosystems. An IVR-based system enabled secure transactions without internet connectivity, empowering underserved populations to access essential financial services like money transfers, bill payments, and balance inquiries.

Outcomes:

This project empowered millions of feature phone users with access to digital payment services. It enabled seamless transactions through IVR-based systems and allowing users without internet or smartphones to perform digital transactions securely. It fosters economic participation in rural and remote areas.

Opportunities:

The UPI 123Pay project is poised for significant scaling and future growth. Plans include expanding to more rural and remote areas, targeting underserved populations across India. Advanced features like recurring payments, loan repayments, and integration with government programs will enhance usability. Partnerships with regional banks, telecom providers, and local organizations will boost adoption.

Summary:

This system, available in 11 regional languages, targets underserved populations in tier 3 towns, rural, and remote areas, where internet connectivity is limited, and smartphones are scarce. UPI 123Pay bridges the digital divide, empowering rural workers, farmers, and small business owners to access banking services remotely, saving time and costs while fostering financial inclusion. Additionally, the model’s success may inspire replication in other developing countries facing similar digital inclusion challenges.

For more information, please contact:
Avinash Shukla at avinash.shukla@ucobank.co.in

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