PhonePe has launched PhonePe UPI 123Pay, bringing UPI payment capabilities to feature phone users across India without requiring an internet connection.
The service is designed to serve India’s 200 million-plus feature phone users, particularly in rural and semi-urban areas where smartphone adoption and reliable internet connectivity remain inconsistent.
PhonePe UPI 123Pay will come pre-bundled on devices from Nokia, HMD, Lava International and Itel Mobile, with additional handset partnerships expected in the coming months.
Built on PhonePe’s proprietary technology stack, the service uses an SMS-based architecture to enable transactions even in areas with limited 2G connectivity. Users can make peer-to-peer transfers through mobile numbers or UPI IDs and make merchant payments using UPI IDs and QR codes.
Beyond payments, the platform allows users to check account balances and view transaction histories. Future updates are expected to add features such as bill payments, recharges and Aadhaar-based UPI onboarding.
PhonePe has also introduced a voice-first, AI-powered helpline to help users activate and navigate the service. The conversational assistant supports English and 12 Indian languages, providing step-by-step guidance and assistance with basic UPI queries.
Sameer Nigam, Founder and CEO, PhonePe, said the launch represents the next step in expanding the benefits of digital payments beyond smartphones and making financial services more accessible across the country.
The service is aimed at addressing last-mile digital payment access, particularly for communities where internet connectivity and smartphone availability remain limited.
Through PhonePe UPI 123Pay, users can register directly on supported feature phones by accepting the terms and conditions, selecting their bank, entering the required debit card details and setting a UPI PIN.
The launch marks PhonePe’s push to extend the reach of UPI-powered digital payments to a wider section of India’s population, regardless of the type of mobile device they use.
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