PhonePe has announced the launch of PhonePe UPI 123Pay, enabling feature phone users to make UPI payments without an internet connection.
The company said the service will be available on Nokia, HMD, Lava International and Itel Mobile – Transsion Holdings devices, with additional handset manufacturers expected to be added in the coming months. PhonePe said the service is built on a technology stack developed for UPI payments on feature phones.
The SMS-based platform is designed to support transactions in areas with limited 2G connectivity. It enables peer-to-peer transfers using mobile numbers or UPI IDs, as well as merchant payments through UPI IDs and QR codes. Users can also check account balances and transaction histories through the service.
PhonePe said future updates will add bill payments, recharges and Aadhaar-based onboarding for UPI.
The company has also introduced a voice-first, AI-powered helpline to assist users with activation and basic UPI queries. The service supports English and 12 Indian languages and provides step-by-step guidance through a conversational voice assistant.
“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,” said Sameer Nigam, Founder and CEO, PhonePe.
“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,” he added.