In a groundbreaking development for India's digital payments ecosystem, banks and technology companies are now enabling Unified Payments Interface (UPI) transactions without requiring an active internet connection. This innovation targets the vast segment of approximately 850 million Indians who have yet to adopt UPI, including the 400 million feature phone users and those in rural and digitally underserved areas.

How Offline UPI Payments Work

Offline UPI payments leverage the *99# USSD service, which users can access by simply dialling *99# on any mobile phone. This service opens a menu with options such as sending money, receiving money, and checking account balances—all without internet connectivity. Transactions through this service are capped at Rs 5,000 and incur a nominal fee of Rs 0.50 per transaction. Users need to have their phone number linked to their bank account and set up a UPI PIN through their bank’s app or website before using offline payments.

A notable advancement in this area is the UPI 123Pay system, which incorporates interactive voice response (IVR) technology, allowing users to conduct voice-guided UPI transactions in 12 Indian languages. This broadens accessibility further by making digital payments feasible even on basic feature phones.

Samsung has added its innovation by integrating biometric authentication into its Samsung Wallet app for UPI payments. Starting December 2025, Galaxy smartphone users in India will be able to authenticate payments with fingerprint or facial recognition instead of entering a PIN. This feature aims to simplify the payment process while maintaining security.