What is USSD and How To Use It To Transfer Money

India is slowly moving towards cashless economy, and we have recently seen e-wallets taking over cash. There are UPI-based payments gateways through which people can pay at the shops and restaurants, and these payment gateways can also be used for electricity, DTH, telephone landline, and LPG payments.

However, UPI apps can only be used when you have an internet connection and that can prove to be a problem, considering only 460 million people have access to the Internet out of the 1.252 billion population. And that is exactly where USSD- based mobile banking comes into picture.

What is USSD payment method?

Unstructured Supplementary Service Data (USSD) is developed by NUUP National Unified USSD Platform. It lets users send and receive money without internet connectivity. The best part is this technology can be used without a smartphone.

When you do a transaction with USSD, the payment is done directly between the bank and the telecom operator. To transmit the information, the payment gateway only needs a GSM network and that is why it is possible to do payments on phones, even if it has a black and white screen.

How to start making USSD payments

1. Get a phone and bank account with a registered mobile number enabling you to do mobile banking.
2. If your mobile number is not registered, just visit your bank to get it registered.
3. Once done, you can generate a random 7-digit MMID number which is generally generated by the bank itself.
4. Once you have the code, you will require an MPIN next. You can change this 4-digit PIN anytime.

When you have all the information with you, its the time to transfer money using USSD short codes.

1. Dial *99# on your phone, enter the bank name, and you will be taken to a new window.
2. You will see a menu and to pick an option, you will have to dial the number adjacent to it. In most cases, you will see the option Send Money using MMID with activation number three. So, dial 3.
3. Once done, enter the receiver's mobile number first and then MMID code.
4. Now, enter the amount you want to pay and a transaction remark if you want, as its optional.
5. On the final step, you need to enter the 4-digit MPIN and your transaction will be authorized. Once done the money will be transferred to the recipients account.

The USSD service works 24 hours and 7 days a week, which makes transfers really convenient. The payment limit is INR 5000 per transaction and you will be charged INR 0.50 per transaction. The payment gateway can be accessed 11 regional languages, apart from English.

However, when you transferring money, make sure you are attentive as the pop-ups come and go fast. If you dont click within 10 second, you will have to start all over again. But overall, USSD is a convenient and easy way of making money transfers.