PhonePe has announced the launch of PhonePe UPI 123Pay, bringing UPI payment capabilities to feature phone users across India without requiring an internet connection. With this launch, PhonePe becomes the first major third-party application provider (TPAP) to extend UPI payments to India’s 200 million+ feature phone users, supporting greater financial inclusion, particularly in rural and semi-urban areas.
The service will come pre-bundled on feature phones from Nokia, HMD, Lava International and Itel Mobile – Transsion Holdings, with more handset manufacturer partnerships expected in the coming months. Powered by PhonePe’s proprietary technology and an SMS-based architecture, UPI 123Pay enables peer-to-peer (P2P) and peer-to-merchant (P2M) payments through mobile numbers, UPI IDs and QR code scanning. Users can also check account balances and transaction histories, while upcoming features include bill payments, recharges and Aadhaar-based UPI onboarding.
Sameer Nigam, Founder and CEO, PhonePe, said the launch will extend the benefits of digital payments beyond smartphones and help bring the next 300 million users into the digital financial ecosystem. PhonePe has also introduced a voice-first, AI-powered helpline supporting English and 12 Indian languages to guide users through activation and UPI-related queries. Users can register by opening the pre-installed PhonePe app, selecting their bank, entering their debit card details and setting a UPI PIN.