USSD stands for Unstructured Supplementary Service Data. It is a global system for mobile communication technology that is used to send text between a mobile phone and an application program in-network. It is currently the best available communications technology to deliver mobile financial services to low-income customers.
This code allows users without a smartphone or data/internet connection to use mobile banking through the *99# code. USSD-based mobile banking can be used for fund transfers, checking account balance, generating bank statement, among other uses.
FORMAT OF THE USSD CODE
The format for the USSD code is pretty simple. It is usually defined by the (*) and the (#) signs, which are dialed at the beginning and the end of the series of digits before you press the send button. The user makes unique dialing initiated by (*) followed by a unique code, thus entering a menu of services offered by the company.
It works through mobile channels through sessions or “conversations” where the user communicates with an application browsing menus.
The menus and services can, of course, be easily created and customized according to specific needs through APIs.
BENEFITS OF USING A USSD CODE
The various advantages of using USSD service are listed as below –
- USSD does not require internet connection or data to work. It allows free of charge roaming.
- It can work across all mobile networks. It only needs a connection to the GSM network to work as it’s not mobile or SIM based.
- It is ideal for all the business needs since it can be customized easily.
- It is user friendly and can be used by anyone.
- This service can be accessed easily anytime and from anywhere.
- USSD can work across all mobile networks. It only needs a connection to the GSM network to work as it’s not mobile or SIM based.
- It is extremely cost effective for businesses to implement and operate.
APPLICATION OF USSD BANKING
The following services are available through USSD banking –
Financial services :- The financial services include –
Fund transfer via:
- Aadhaar card
- Account number
Non – Financial services :- The non financial services include-
- Balance Enquiry
- Mini statement
- OPT generation
- Generation and change of MPIN
- Product promotion
- Utility Services
Thus, in a nutshell, the USSD code is actually an interactive and menu-based technology that is supported on nearly all mobile phones & forms a very essential component of modern-day communication.