New Delhi, Aug 31: Digital payments are moving beyond the smartphone era as PhonePe has introduced UPI 123Pay for feature phones, allowing users to make UPI transactions without requiring mobile internet.
The service is aimed at expanding access to digital payments among India’s large feature-phone user base, particularly people in rural and semi-urban areas where smartphone ownership or reliable internet connectivity may still be limited. PhonePe estimates that the service can reach more than 200 million feature-phone users across the country.
The new platform uses an SMS-based technology architecture, allowing transactions to work even in areas with limited 2G connectivity. Users can transfer money, make payments to merchants and check basic account information without depending on mobile data.
Feature phones equipped with cameras will also support QR-code payments, giving users another convenient option for completing transactions at participating merchants. The service can additionally provide access to account balances and transaction history.
PhonePe has partnered with handset makers including Nokia, HMD, Lava International and Itel Mobile to make the service available on selected feature phones. The company is expected to expand the network of supported devices over time.
To make the platform easier for first-time digital-payment users, PhonePe has also introduced a voice-first, AI-powered support service offering step-by-step assistance in English and 12 Indian languages.
The initiative could have a wider impact on India’s financial inclusion drive by reducing the dependence on smartphones and high-speed internet for everyday payments. It could particularly benefit consumers, small traders and merchants in areas where connectivity remains a challenge.
For the broader digital economy, extending UPI access to feature phones could bring more consumers into formal digital transactions and provide small businesses with additional ways to receive payments.
The move also reflects the continuing evolution of India’s digital-payment ecosystem, where technology is increasingly being adapted to serve users across different devices and connectivity levels.
By taking UPI beyond smartphones, PhonePe’s latest initiative could help narrow the digital divide and bring millions of under-connected users closer to India’s expanding cashless economy.