PhonePe expands UPI access to feature phones with offline payment service
The service will be available on select devices from Nokia, HMD, Lava International, and Itel Mobile, with more handset partnerships expected in the coming months.
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PhonePe has launched UPI 123Pay, enabling feature phone users across India to make UPI transactions without requiring an internet connection, a statement said.
The move makes PhonePe one of the first major third-party UPI apps to offer digital payment services to the country’s large feature phone user base, estimated at over 200 million people.
The service will be available on select devices from Nokia, HMD, Lava International, and Itel Mobile, with more handset partnerships expected in the coming months. The company said the solution has been developed using a dedicated technology stack designed specifically for feature phones.
PhonePe UPI 123Pay operates through an SMS-based system, allowing users to send and receive money even in areas with weak or limited 2G connectivity. Users can transfer funds to individuals using mobile numbers or UPI IDs and make merchant payments through UPI IDs or QR code scanning. The platform also allows users to check account balances and review transaction history.
The company plans to expand the offering with additional features such as bill payments, mobile recharges, and Aadhaar-based UPI onboarding in future updates.
To simplify onboarding, PhonePe has also introduced an AI-powered voice support helpline. Available in English and 12 Indian languages, the conversational assistant helps users activate the service and provides guidance on basic UPI-related queries.
Commenting on the launch, PhonePe Founder and CEO Sameer Nigam said extending UPI access to feature phones is the next step in expanding digital payments across the country. He added that the initiative aims to bring millions of users who do not own smartphones into the formal digital financial ecosystem.