PhonePe is expanding UPI payments to feature phones through UPI 123Pay, allowing users to make transactions without a conventional internet connection.
PhonePe has introduced its UPI 123Pay service for supported feature phones in India, bringing essential UPI payment capabilities to users who do not regularly use smartphones or have reliable internet access.
The service is designed to enable key UPI functions without requiring a conventional mobile internet connection. PhonePe says the feature is being introduced across compatible feature phones from multiple manufacturers, with support expected to expand to additional models in the coming months.
The move could make digital payments more accessible to India’s large feature phone user base, particularly in areas where smartphone ownership or reliable mobile internet connectivity remains limited.
PhonePe UPI 123Pay Brings UPI to Feature Phones
PhonePe said its UPI 123Pay service is now available on supported feature phones across India. The service uses SMS-based technology to facilitate UPI transactions without requiring users to have an active internet connection.
Users can access several essential payment functions, including person-to-person money transfers and merchant payments. The service also allows users to check their bank balance and view transaction history.
PhonePe is targeting feature phone users who may still depend on basic handsets for everyday communication and financial transactions. The company says the service is designed to work even in areas where users have limited 2G connectivity.
What Can Users Do With PhonePe UPI 123Pay?
PhonePe UPI 123Pay currently supports several commonly used UPI functions on compatible feature phones. Users can send money to another person, make payments to merchants and check information associated with their bank account.
The service supports transactions using a contact, mobile number or UPI ID. Feature phones equipped with cameras can also support QR code scanning, giving users another way to initiate merchant payments.
PhonePe has indicated that additional capabilities will be introduced over time. These are expected to include bill payments, mobile recharges and Aadhaar-based UPI registration.
The expansion could make PhonePe UPI 123Pay more useful for customers who rely on feature phones for a wider range of financial activities.
PhonePe UPI 123Pay Supported HMD and Nokia Phones
HMD has confirmed support for PhonePe UPI 123Pay on several of its feature phone models. The supported devices include the HMD 105 2G, HMD 110 2G, Nokia 105 Classic, Nokia 105 Single SIM, Nokia 105 Dual SIM, Nokia 106 and Nokia 123 Shield.
PhonePe and its device partners are expected to add support for more models in the future. The service is initially being made available through selected feature phones from HMD, Nokia, Lava International and Itel Mobile.
This means users should check whether their specific handset supports the service before attempting to activate UPI 123Pay.
How to Set Up PhonePe UPI 123Pay
Users can set up the service through the pre-installed PhonePe application on a compatible feature phone. The activation process requires users to follow the instructions displayed on the device.
During registration, users need to accept the applicable terms and conditions and select their bank from the available options. They are then required to enter the last six digits of their debit card along with the card’s expiry date.
After completing the verification process, users can create their UPI PIN. Once the setup is complete, the feature phone can be used to make supported UPI transactions.
For payments, users can select a contact, mobile number or UPI ID, verify the recipient information and enter the amount they want to transfer. The transaction is then authenticated using the UPI PIN.
Feature phones with cameras can additionally be used to scan supported QR codes for merchant payments.
PhonePe Adds AI Voice Support for UPI 123Pay
PhonePe is also introducing an AI-powered voice helpline to assist users during the setup and use of the service. The helpline is designed to provide step-by-step guidance and answer basic questions related to UPI.
The voice assistance supports English and 12 Indian languages, potentially making the service easier to use for customers who are less comfortable navigating digital payment applications.
The addition of voice-based assistance is particularly relevant for feature phone users, as the overall experience is designed around simpler interaction compared with conventional smartphone-based payment applications.
PhonePe Targets India’s Feature Phone Users
PhonePe’s expansion into feature phones comes at a time when UPI has become one of India’s most widely used digital payment systems. However, smartphone-based UPI services are not equally accessible to every user.
According to PhonePe, more than 200 million feature phone users in India could potentially benefit from services such as UPI 123Pay.
By supporting payments without requiring conventional internet access, the service can potentially extend digital payment functionality to users who continue to depend on basic mobile handsets.
The approach could also be relevant in locations where mobile data availability is inconsistent but basic cellular connectivity remains accessible.
PhonePe UPI 123Pay Could Expand Digital Payment Access
The introduction of UPI 123Pay on feature phones gives users another way to participate in India’s digital payment ecosystem without depending entirely on smartphones.
For users with supported handsets, the ability to make payments, transfer money, check bank balances and review transaction history can reduce the need to switch to a smartphone for basic banking-related activities.
PhonePe’s plans to add bill payments, mobile recharges and Aadhaar-based registration could further expand the range of services available through the platform.
The company is also expected to increase device compatibility over the coming months, which could make PhonePe UPI 123Pay accessible to a larger number of feature phone users across India.
For now, customers should verify whether their handset is supported and follow the activation instructions available through the PhonePe application before using the service.
