In order to provide UPI payment capabilities to feature phone users throughout India without requiring an internet connection, PhonePe has introduced UPI 123Pay. With this launch, PhonePe positions itself as a step toward broader financial inclusion for communities that smartphone-first UPI apps have largely excluded, becoming the first significant third-party UPI application provider to offer UPI payments to the nation’s more than 200 million feature phone users.
PhonePe UPI 123Pay will be pre-bundled on devices from Nokia, HMD, Lava International, and Transsion Holdings’ feature phone brand Itel. According to the business, more handset manufacturer collaborations are anticipated in the upcoming months. The service is powered by a proprietary technological stack that PhonePe created especially to enable UPI payments on feature phones.
How It Operates Without the Internet
UPI 123Pay employs an SMS-based architecture in place of a data connection, which is intended to maintain transaction functionality even in locations with spotty or restricted 2G network coverage. In addition to peer-to-merchant payments via UPI IDs and QR code scanning, the service facilitates peer-to-peer transfers utilising cellphone numbers or UPI IDs. In addition to making payments, customers can use their feature phone to read past transaction history and check their account balance.
According to PhonePe, further updates would include features like bill payment, mobile recharging, and Aadhaar-based UPI onboarding that were not previously available on feature phones.
PhonePe has also launched an AI-powered, voice-first hotline designed to go beyond conventional inflexible IVR menus in order to assist consumers who are not comfortable with digital payments in getting started. The conversational assistant uses speech processing and AI reasoning to guide users through activation step-by-step and respond to simple UPI-related queries. It is available in English and 12 Indian languages.
In rural and semi-urban India, where smartphone penetration and reliable internet connectivity are still unequal, the service is specifically targeted at last-mile access gaps. The launch has been positioned by PhonePe as reaffirming its declared commitment to enabling digital payments on any device.
How to Sign Up with PhonePe UPI 123Pay
Neither a smartphone nor an internet connection are needed to set up the service:
- On the feature phone, launch the PhonePe app that comes pre-installed.
- To finish the automated device registration process, read and agree to the terms and conditions.
- From the list of possibilities, choose your bank.
- Enter your debit card’s expiration date and the last six numbers.
- Create a PIN for UPI. After that, your UPI ID becomes activated and you may immediately begin making payments.
How to make payment?
- On the feature phone, use the PhonePe app and select one of the following payment options: Scan & Pay, Contact Book, Mobile Number, or Pay to UPI.
- Choose “Pay to UPI ID” or “Pay to Mobile Number.”
- Enter the UPI ID or mobile number of the receiver. The Scan & Pay option is an alternative for feature phones that support cameras.
- Verify the information, input the sum and your UPI PIN, and then click OK to confirm.
- When the payment is successful, a confirmation screen will appear.
