Offline UPI Payment – How to make UPI Payments without Internet

Although UPI transactions are primarily online, the introduction of offline UPI payments adds numerous benefits for businesses.

Understanding Offline UPI Payments

Imagine you are in a remote area with no internet connection, and need to process payments. Offline UPI payments simplify this process, enabling transactions without internet access! These payments utilise technologies like USSD (Unstructured Supplementary Service Data) and *99# Banking, making them easy and convenient. They can easily scale across regions and demographics, enhancing the reach of digital payments while also promoting digital financial inclusion by bringing unbanked or underbanked populations into the digital payment ecosystem.

However, there are a few limitations. The transaction limit for offline UPI payments is currently set at INR 5000, which can be insufficient for larger purchases. Offline UPI may lack features available in online transactions, such as viewing transaction history or accessing certain banking services.

Also, while it doesn't require internet access, it does rely on mobile network coverage, posing challenges in areas with poor reception. Not all merchants may accept offline UPI payments, especially in urban areas where internet-based payments are more common.

Methods for Making Offline UPI Payments

When it comes to making payments without the internet, businesses can have offline UPI payment methods ready to use. Here is how offline UPI payments can work for you -

• USSD-based Transactions - Think of USSD as your reliable text messaging service for banking. By using simple text commands on your mobile phone, you can access essential banking services. Businesses can provide this option to their customers, ensuring seamless payments even without internet access. For instance, a shop in a rural area can accept payments via USSD, ensuring higher sales.
• 99# Banking - Another handy tool for offline UPI transactions is *99# Banking, which is supported by the National Payments Corporation of India (NPCI). By dialling *99# on their mobile phones, users can perform a range of banking activities, including making UPI payments, all without needing an internet connection. Picture a market kiosk where customers can pay just by dialling a number on their phone – quick, easy, and internet-free.
• NPCI's Initiatives - The NPCI, the brains behind UPI, is always looking for new ways to make offline payments better. Their initiatives aim to broaden the scope of digital transactions, allowing businesses to reach customers in all corners of the country. This means a small business in a remote area can enjoy the same payment convenience as one in a metro region.
• Security Measures and Considerations - While offline UPI payments are very convenient, it is crucial for businesses to keep security at the forefront. To protect transactions and customer data, implementing strong encryption protocols, multi-factor authentication, and conducting regular security audits is essential. This ensures that even when the internet is down, trust and reliability remain high.
• Benefits of Offline UPI Payment for Businesses - Embracing offline UPI payments offers numerous advantages for businesses, ensuring seamless operations even in areas with poor internet connectivity. Here is how your business can benefit.
• Expand Your Customer Reach - As already discussed, offline UPI payments extend the accessibility of digital transactions to areas with limited internet connectivity. For businesses, this means tapping into previously untapped markets and expanding their customer base.
• Ensure Uninterrupted Transactions - By offering offline UPI payment options, businesses can mitigate the risk of transaction failures due to internet outages or network issues. This ensures uninterrupted service delivery and fosters customer satisfaction, enhancing brand loyalty in the process.
• Streamline Your Operations - Offline UPI payments simplify the payment process for businesses, reducing reliance on traditional cash-based transactions. This minimises manual intervention and associated errors while accelerating reconciliation and accounting processes, optimising operational efficiency.
• Save on Transaction Costs - Embracing offline UPI payments can lead to significant cost savings for businesses, particularly in regions where internet connectivity is limited or expensive. By leveraging existing USSD infrastructure, businesses can avoid the need for costly internet-based payment gateways, thus reducing transaction costs.
• Gain a Competitive Edge - In an increasingly digitised marketplace, businesses that adopt innovative payment solutions gain a competitive edge. By offering offline UPI payments alongside traditional methods, businesses demonstrate adaptability and cater to diverse customer preferences, positioning themselves as industry leaders.

Offline UPI payments usher in a new era of inclusivity and convenience in digital transactions, offering unparalleled opportunities for businesses to succeed in various environments. By adopting this transformative technology, businesses can extend their reach, streamline operations, and provide seamless payment experiences, ultimately driving growth and success in today's dynamic marketplace. Know more about UPI payments, explore our blogs>