Chennai, Sept 4:
PhonePe has launched PhonePe UPI 123Pay, enabling feature phone users across India to make UPI payments without an internet connection.
PhonePe said it is the first major third-party application provider (TPAP) to extend UPI payments to India’s more than 200 million feature phone users. The service will be pre-bundled on devices from Nokia, HMD, Lava International and Itel Mobile, with more handset partnerships expected.
The SMS-based platform supports peer-to-peer transfers through mobile numbers or UPI IDs and merchant payments through UPI IDs and QR codes. Users can also check account balances and transaction histories.
PhonePe said upcoming features will include bill payments, recharges and Aadhaar-based UPI onboarding. The company has also introduced an AI-powered, voice-first helpline offering assistance in English and 12 Indian languages.
PhonePe Founder and CEO Sameer Nigam said the initiative aims to extend digital payments beyond smartphones and bring the benefits of UPI to underserved communities, particularly in rural and semi-urban areas with limited smartphone and internet access.
Users can activate the service directly on supported feature phones by selecting their bank, entering debit card details and setting a UPI PIN. They can then make payments using options including Scan & Pay, contacts, mobile numbers and UPI IDs.