PhonePe brings internet-free UPI payments to feature phones

PhonePe has launched UPI 123Pay across India for compatible feature phones. It works without internet, using SMS for money transfers and merchant payments, including in areas with limited 2G connectivity. The service brings UPI to more than 200 million feature phone users and supports person-to-person transfers, merchant payments, bank balance checks and transaction history. PhonePe plans to add bill payments, mobile recharges and Aadhaar-based UPI registration. 

The service is initially available on select HMD, Nokia, Lava International and Itel Mobile phones.

Commenting on the partnership, Arijit Talapatra, CEO, itel India, said, “At itel, our focus has always been on making technology accessible and useful for every Indian, especially consumers in smaller towns, rural markets and communities that are often underserved by the latest digital solutions. Our partnership with PhonePe is a natural extension of this commitment. By bringing UPI payments to our feature phones, we are making digital payments simpler and more accessible for millions of consumers who may not use smartphones or have no regular access to the internet. We believe this collaboration will help bring more people into India’s growing digital payments ecosystem.”

 Speaking on the launch, Sameer Nigam, Founder and CEO, PhonePe, said, "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. 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.”

The collaboration with PhonePe also comes at a time when digital payments have become an integral part of everyday transactions in India. By extending UPI access to feature phones, the partnership seeks to make digital payments available to consumers who may not yet have moved to smartphones.