PhonePe has announced the introduction of PhonePe UPI 123Pay, enabling UPI payment functions for feature phone users throughout India without requiring an internet connection.

Consequently, PhonePe becomes the first significant third-party application provider (TPAP) to offer UPI payments to over 200 million feature phone users in India. This represents a crucial move towards enhancing financial inclusion and integrating underserved populations into the digital payments ecosystem.

The service will be pre-packaged on devices from Nokia, HMD, Lava International, and Itel Mobile – Transsion Holdings, with additional partnerships with other manufacturers expected in the next few months. The launch leverages our unique technology platform developed expressly for UPI transactions on feature phones.

Engineered for dependability, PhonePe UPI 123Pay employs a strong SMS-based framework, guaranteeing transactions are processed even in areas with restricted 2G coverage. The platform facilitates effortless peer-to-peer (P2P) transactions using mobile numbers or UPI IDs, as well as peer-to-merchant (P2M) payments through UPI IDs and scanning QR codes.

Also Read: The Rise of Deep Tech in India: Why India Must Play the Long Game

Apart from making payments, feature phone users can oversee their accounts, verify account balances, and review transaction records. Future updates will bring advanced features not previously found on feature phones, such as bill payments, recharges, and Aadhaar-based registration for UPI.

Also Read: India's Deep-Tech Revolution: 10 AI Startups Driving Innovation

Moreover, to assist feature phone users with setup and activation, PhonePe has launched a voice-first, AI-driven helpline. Going past inflexible IVR menus, the conversational voice assistant offers assistance in English and 12 Indian languages. Fueled by sophisticated speech processing and AI logic, the assistant provides step-by-step activation instructions and addresses essential UPI questions for a safe, seamless experience.

Also Read: Cybersecurity Threats Organizations Can't Ignore in the Digital Age

Sameer Nigam, Founder and CEO, PhonePe, said, “Over the last decade, UPI has completely transformed how India pays–a journey PhonePe is proud to have built alongside it from day one. As we reflect on how far we have come, the logical next step is expanding the horizon even further and unlocking what’s next. Bringing UPI to feature phones through PhonePe UPI 123Pay extends the benefits of digital payments beyond smartphones to every corner of the country. To us, this is what building for India actually means- meeting people where they are to drive a truly universal wave of financial inclusion that will onboard the next 300 million users into the digital financial fold.”