No smartphone, no internet? PhonePe launches new UPI service for feature phone users
PhonePe has launched a new UPI payment service that enables people using feature phones to carry out digital transactions without an internet connection.
Called PhonePe UPI 123Pay, the service uses the company’s proprietary technology and an SMS-based system to facilitate payments, including in areas where 2G connectivity is limited. According to news agency PTI, PhonePe is the first major third-party application provider (TPAP) to offer UPI payment facilities to India’s estimated 200 million-plus feature phone users.
The fintech company has joined hands with handset makers such as Nokia, HMD, Lava International and itel to have the service pre-installed on their devices.
“Bringing UPI to feature phones through PhonePe UPI 123Pay extends the benefits of digital payments beyond smartphones to every corner of the country,” Sameer Nigam, founder and CEO of PhonePe, said.
Nigam said the initiative is intended to bring the “next 300 million users” into the digital payments ecosystem and further financial inclusion.
Feature phone users can make UPI payments, check balances
PhonePe UPI 123Pay offers several payment and account-related services to users. These include:
- Peer-to-peer (P2P) money transfers
- Peer-to-merchant (P2M) payments
- QR code payments on feature phones with cameras
- Bank account management and balance checks
- Access to transaction history
The service is designed to make UPI more accessible to people who do not own smartphones or have reliable internet connectivity.
AI-powered helpline to assist new users
To simplify the activation process, PhonePe has introduced a voice-first helpline powered by artificial intelligence.
The assistant guides users through the process in English and 12 Indian languages, helping first-time users navigate the service.
PhonePe said it plans to expand the platform with additional services, including utility bill payments, mobile recharges and Aadhaar-based onboarding.
PhonePe has 71.5 crore registered users
The launch comes as PhonePe continues to expand its digital payments network in India. As of July, the company said it had more than 71.5 crore registered users and over five crore merchants on its platform.
With UPI 123Pay, PhonePe aims to extend digital payment access to a wider group of Indians who continue to use feature phones instead of smartphones.
How to register and make payments on PhonePe UPI 123Pay
Users do not need a smartphone to set up PhonePe UPI 123Pay. They can begin by opening the PhonePe app that comes pre-installed on their feature phone, agreeing to the terms and conditions, and choosing their bank from the available options.
As part of the registration process, users will have to provide the last six digits of their debit card and its expiry date before creating a UPI PIN. Once the PIN has been set, their UPI ID will be activated, allowing them to make digital payments.
To transfer money, users can open the PhonePe app and select how they want to pay, including through a saved contact, mobile number or UPI ID. They can then select the recipient, enter the required amount and verify the transaction details before authorising the payment with their UPI PIN.
Feature phones that have cameras will also support PhonePe’s Scan and Pay facility. Users can scan a merchant’s QR code, enter the payment amount and complete the transaction by entering their UPI PIN.
