Indian Overseas Bank Partners NPST to Launch Voice-Based UPI 123Pay for Unbanked Millions

Indian Overseas Bank (IOB) is collaborating with Network People Services Technologies Limited (NPST) to introduce UPI 123Pay, a revolutionary voice-based Unified Payments Interface (UPI) system. This system is specifically designed to cater to the vast segment of the Indian population that has not yet adopted UPI, estimated to be around 850 million individuals. This includes approximately 400 million feature phone users and numerous smartphone users who find digital payment interfaces challenging.

Regulators are encouraging such inclusive technologies to bring more people into the digital economy, especially those with limited digital literacy or unstable internet access. IOB customers can now transition from cash transactions to digital payments using MissCallPay. The process involves giving a missed call to a designated number, receiving an IVR callback, and then completing the transaction using voice commands or keypad inputs, followed by entering their UPI PIN. The system functions effectively without mobile data or internet, thereby reducing vulnerability to cyber threats.

The IVR platform supports 12 Indian languages and offers features like balance checking, viewing recent transactions, dispute resolution, and UPI PIN management. Deepak Chand Thakur, Chairman and Managing Director of NPST, highlighted this as a transformative step towards a truly inclusive digital economy, making digital payments accessible to every segment of society. He also envisions integrating this system with AI capabilities for conversational payments via platforms like Alexa and Google Assistant.

Impact: This initiative is expected to significantly boost financial inclusion in India, bring millions of new users into the digital payment ecosystem, and potentially increase transaction volumes for financial institutions involved. It addresses a critical gap in digital adoption and leverages accessible technology for widespread reach. Rating: 7/10

Difficult Terms: UPI 123Pay: A payment system that allows users to make UPI transactions using voice commands or keypad inputs on feature phones or smartphones without requiring internet connectivity. IVR (Interactive Voice Response): An automated telephone system that interacts with callers by voice or keypad inputs, providing information and processing requests. Fintech: Companies that use technology to provide financial services in innovative ways. Feature phone: A mobile phone that offers basic communication functions like calling and texting, without advanced features like a large touchscreen or extensive app support found in smartphones.