India’s digital payment ecosystem is taking a leap toward true inclusivity by enabling payments even when users don’t have an internet connection. The Unified Payments Interface (UPI), long a staple of smartphone-based transactions, now works in offline environments through initiatives like UPI 123PAY and USSD services. 

What’s new and how it works

• UPI 123PAY, developed by National Payments Corporation of India (NPCI), allows feature-phone users to create UPI IDs and transact without the internet or even a smartphone.

• USSD-based payments work by dialing *99# on a mobile phone (even a basic one) to bring up a menu to send money, receive payments, check balance or change UPI PIN — all without data connectivity. 

• Offline modes include IVR (voice), missed call triggers, sound-based methods and app-embedded solutions for non-smartphone devices.
  

Why this matters

• Financial inclusion: Hundreds of millions of Indians using feature phones or living in areas with poor internet connectivity can now participate in digital payments.

• Bridging the digital divide: This enables digital financial services to reach rural, remote or underserved populations where smartphone penetration or connectivity is low.

• Resilience & accessibility: Payments no longer hinge on stable internet; even in connectivity blackspots users can send/receive money.
  

What users need to know

• Ensure your mobile number is linked to your bank account and enabled for UPI.

• Familiarize yourself with the *99# menu (or the bank’s USSD/IVR number) for offline transactions.

• You will still set or use a UPI PIN for security, even if you’re using an offline mode. 

• While traditional UPI apps still dominate smartphone use, this offline route complements them rather than replaces them.

• Always verify you are using official codes/menus and beware of phishing or fraudulent prompts.
  

Limitations & cautions

• While the service brings many advantages, users should check with their bank for support, available banks, and transaction limits under offline modes.

• Some features (e.g., certain merchant transactions or QR scans) may still require app support or connectivity - the offline methods primarily cater to peer-to-peer and basic payments.

• As with any financial service, user vigilance is important—ensure PINs are secure and don’t share sensitive information.

In Summary

India’s advance into offline UPI payments is a significant step in digital financial inclusion. By enabling the UPI ecosystem to function without internet, through UPI 123PAY, USSD (*99#) and other modalities, millions of users on feature phones or in low-connectivity zones can now join the cashless payments revolution. The move improves access, resilience and fairness in the digital economy while reinforcing the role of UPI as a cornerstone of India’s payments architecture.