PhonePe has launched UPI 123Payallowing feature phone users across India to make UPI payments without needing a smartphone or an active internet connection.
The service is aimed at expanding digital payments to more than 200 million feature phone usersparticularly in rural and semi-urban areas where smartphone ownership and reliable mobile internet remain limited.
UPI Works Through SMS
PhonePe UPI 123Pay uses an SMS-based architecture rather than requiring mobile data. This allows transactions to work even in areas with limited 2G connectivity.
Users can make person-to-person transfers using a mobile number or UPI ID. They can also make merchant payments using UPI IDs and, on supported camera-enabled feature phones, by scanning QR codes.
The service also allows users to check their bank balance and transaction history directly from their feature phones.
How to Activate PhonePe UPI 123Pay
The service comes pre-bundled on select feature phones from Nokia, HMD, Lava and Itel.
Users can open the PhonePe application on a supported phone, select their bank and enter the last six digits and expiry date of their debit card. They can then create a UPI PIN and activate their UPI ID.
The entire registration process is designed to work without requiring a smartphone or internet connection.
AI Helpline Supports 13 Languages
PhonePe has also introduced a voice-based AI helpline to help users register and activate the service.
The conversational assistant supports English and 12 Indian languagesproviding step-by-step guidance and answering basic questions related to UPI.
This could make the service easier to use for people who may not be comfortable navigating conventional smartphone payment applications.
More Services Planned
PhonePe plans to expand the feature phone service beyond basic payments. Future updates are expected to include bill payments, mobile recharges and Aadhaar-based UPI onboarding.
The company is also expected to add more handset manufacturers to the programme.
Opening UPI to Feature Phone Users
UPI has largely been associated with smartphones and mobile internet, but UPI 123Pay is designed to extend the payment network to users who do not have either.
PhonePe’s rollout builds on NPCI’s existing UPI 123Pay framework, which was created specifically to enable UPI transactions through feature phones without internet connectivity.
Summary
PhonePe has launched UPI 123Pay for feature phonesallowing users to send money, pay merchants and check bank information without smartphones or mobile internet. The SMS-based service will initially be available on select Nokia, HMD, Lava and Itel devices, with an AI-powered helpline supporting English and 12 Indian languages.
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