PhonePe brings UPI 123Pay to feature phones without internet

MUMBAI: No smartphone, no problem, PhonePe is putting a little more ‘pay’ in feature phones. The digital payments platform has introduced a version of UPI 123Pay that allows users with supported feature phones to make UPI payments without a smartphone or an active internet connection.

The service is initially being rolled out on select devices from Nokia, HMD, Lava International and Itel Mobile, with PhonePe expecting more handset manufacturers to join as the rollout expands.

Built around an SMS-based system, the service is aimed at users who may have limited or unreliable mobile data connectivity, including those in areas still served by 2G networks.

PhonePe’s feature-phone service supports person-to-person payments using a recipient’s mobile number or UPI ID. Users can also pay merchants through a UPI ID, while compatible handsets with cameras can support QR-code payments.

The service goes beyond sending money. Users can check their bank account balance and access transaction information directly from the feature phone.

PhonePe plans to add more functionality in subsequent updates, including bill payments, mobile recharges and Aadhaar-enabled UPI onboarding.

Activation does not require an internet connection. On an eligible handset, users can open the PhonePe application and accept the terms of service before selecting their bank.

They then need to enter the final six digits of their debit card, along with its expiry date, and create a UPI PIN. Once registration is complete, the UPI ID becomes active for transactions.

For payments, users can select the mobile-number or UPI-ID option, enter the recipient’s details, verify the beneficiary information and enter the amount. The transaction is authorised using the UPI PIN, after which a confirmation appears on the device.

Depending on the handset, users can also access contacts or scan QR codes.

PhonePe has added voice assistance for activation support and basic UPI-related queries. The facility is available in English and 12 Indian languages, giving the service a wider linguistic reach.

The move builds on the National Payments Corporation of India’s (NPCI) UPI 123Pay framework, which was designed to extend UPI access to feature phones and users who cannot rely on conventional internet-based payments.

For PhonePe, the pitch is straightforward: digital payments need not stop where mobile data does. By bringing UPI transactions to feature phones through an SMS-based mechanism, the company is looking to reach consumers who either continue to use basic handsets or face constraints in accessing mobile internet.