No internet, no smartphone: PhonePe launches UPI payments for feature phones
New Delhi: PhonePe has launched UPI 123Pay, a new service that enables users of feature phones to make UPI payments without an internet connection, opening up digital payments to an estimated 200 million-plus feature phone users in India.
With the launch, the fintech company said it has become the first major third-party application provider (TPAP) to extend UPI payment services to feature phone users across the country.
The service runs on a proprietary technology stack and uses an SMS-based architecture aimed at ensuring reliable transactions in areas with limited 2G connectivity.
PhonePe has partnered with handset manufacturers, including Nokia, HMD, Lava International and Itel Mobile (Transsion Holdings), to make the service available as a pre-bundled offering 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," said Sameer Nigam, Founder and CEO, PhonePe.
He added that the initiative aims to drive financial inclusion by onboarding the "next 300 million users" into the digital fold.
PhonePe UPI 123Pay supports both peer-to-peer (P2P) money transfers and peer-to-merchant (P2M) payments. Feature phones with cameras can also be used to scan QR codes and make payments.
The service further allows users to manage their accounts, check balances and access their transaction history.
For users unfamiliar with digital payments, PhonePe has introduced a voice-first, AI-powered helpline that provides step-by-step assistance for activating and using the service. The assistant is available in English and 12 Indian languages.
PhonePe said it plans to expand the service with additional features, including utility bill payments, mobile recharges and Aadhaar-based onboarding, through future updates.
As of July 2026, PhonePe reported having more than 71.5 crore registered users and a merchant network of over five crore partners.