According to the report, the new service will probably be implemented using the interoperable UPI protocol. Hence, feature phone users will not require any third party app or stable internet connection to complete the transaction. This project has been named “Interactive Voice Response” or IVR Payment Project.
beta testing continues
The service is currently undergoing beta testing and the pilot program is being monitored by the bank, under the provisions of the regulatory sandbox of the Reserve Bank of India. But sources say that after the completion of the first phase of testing, a bigger rollout will be subject to RBI approval.
Also this system was developed by Bengaluru-based fintech Ubona Technologies. According to sources in which a private sector bank provides the facility of transactions on the backend.
Reportedly, NPCI and RBI are exploring several feature phone based payment options. The research is meant to eliminate the need for an Internet connection or expensive authentication hardware such as biometric scanners or point-of-sale devices.
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How will the whole work be done?
Through this facility, feature phone users will be able to conduct merchant payments as well as peer-to-peer transaction transactions by generating an authentication PIN linked to their bank accounts, debit cards and registered mobile phone numbers.
As per the new report claimed by NPCI, this is similar to the method used to generate the UPI PIN. In addition, feature phone users will be able to produce an authentication PIN through a common dial-in service, which can be operated by NPCI.
Going forward, this PIN can be used at merchant points and account holders. They can then use their feature phone to select the payment size and merchant details through the Dual Tone Multi-Frequency (DTMF) system.
It will assist the user through two-factor authentication (2FA) flow in local languages. The DTMF system is a technology that allows callers to use the keypad corresponding to the number of menu choices to select a preferred selection on a touch-tone phone.
The second part of this service involves acquiring banks providing their merchants with a proxy identification number. Basically, it can be used to validate the acceptance of a transaction.
As with existing UPI networks, interoperable standards allow two or more banks to communicate and check small-ticket payments in real time.
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have to do this work
Sources said- as of now “there are several phases of this payment system that need to be resolved for mass adoption, such as strengthening security and accessibility, as well as enabling banks with concurrent calling infrastructure that can be used at a time Can handle thousands of calls. However, these considerations are for future when NPCI and RBI allow larger rollout of this service. Preliminary results are promising.”