PhonePe, today announced the launch of PhonePe UPI 123Pay, bringing UPI payment capabilities to feature phone users across India without the need of an internet connection. With this, PhonePe becomes the first major third-party application provider (TPAP) to extend UPI payments to India’s 200 million+ feature phone users. This is a significant step toward advancing financial inclusion and bringing underserved communities into the digital payments fold.
The service will come pre-bundled on Nokia, HMD, Lava International and Itel Mobile – Transsion Holdings devices, with other handset manufacturer partnerships to follow in the coming months. The launch builds on our proprietary technology stack built specifically for UPI payments on feature phones.
Designed for reliability, PhonePe UPI 123Pay utilizes a robust SMS-based architecture, ensuring transactions go through even in regions with limited 2G connectivity. The platform enables seamless peer-to-peer (P2P) transfers via mobile numbers or UPI IDs, alongside peer-to-merchant (P2M) payments through UPI IDs and QR code scanning. Beyond payments, feature phone users can manage their accounts, check account balances, and view transaction histories. Upcoming updates will introduce advanced capabilities previously unavailable on feature phones, including bill payments, recharges, and Aadhaar-based onboarding onto UPI.
Additionally, to guide feature phone users through setup and activation, PhonePe has introduced a voice-first, AI-powered helpline. Moving beyond rigid IVR menus, the conversational voice assistant provides support in English and 12 Indian languages. Powered by advanced speech processing and AI reasoning, the assistant delivers step-by-step activation guidance and answers fundamental UPI queries for a secure, frictionless experience.
Speaking on the launch, 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.”
The solution directly addresses last-mile access in rural and semi-urban India, where smartphone penetration and reliable internet connectivity remain inconsistent– reinforcing PhonePe’s long-standing commitment to making digital payments accessible to every Indian, regardless of the device they own.
Here’s how users can register and use PhonePe UPI 123Pay on their devices:
Registering for PhonePe UPI 123Pay on a feature phone is a simple process without using a smartphone or the internet:
● Open the PhonePe app pre-installed on your feature phone.
● Read & Accept the Terms & Conditions to complete the automated device registration.
● Select your bank from the options list.
● Enter the last 6 digits of your debit card and its expiry date.
● Set your UPI PIN. Your UPI ID is now active, and you can begin making payments immediately using PhonePe UPI 123Pay.
Making payments on the PhonePe app:
Step1: Users can initiate the PhonePe application on the feature phone, and explore multiple ways to pay- Scan & Pay/ Contact Book/ Mobile Number or Pay to UPI
Step 2: Users can select “Pay to Mobile Number/Pay to UPI ID”
Step 3: Enter the Mobile Number/ UPI ID
For feature phones with camera support, users can also use the “scan and pay” option to make payments.