Digital Payments Without Internet: PhonePe Rolls Out 'UPI 123Pay' for Feature Phone Users Nationwide

Fintech major PhonePe today, August 31, announced the launch of "PhonePe UPI 123Pay", a new service designed to bring Unified Payments Interface (UPI) transactions to feature phone users without requiring an internet connection. With this rollout, the company states it is the first major third-party application provider (TPAP) to extend digital payment capabilities to an estimated market of more than 200 million feature phone users across India.

Technology and Hardware Partnerships

The platform operates on a proprietary technology stack utilizing an SMS-based architecture, which is engineered to maintain transaction reliability in areas with restricted or 2G-only connectivity. PhonePe Wallet Users May Be Charged INR 100 for Inactivity; Here’s What You Need To Know.

PhonePe Launches UPI Payment for Feature Phones

To support the deployment, PhonePe has established partnerships with key device manufacturers - including Nokia, HMD, Lava International, and Itel Mobile (Transsion Holdings) - to have the service pre-bundled directly onto new feature phones. “Bringing UPI to feature phones through PhonePe UPI 123Pay extends the benefits of digital payments beyond smartphones to every corner of the country," said Sameer Nigam, Founder and CEO of PhonePe. He noted that the initiative is intended to advance financial inclusion by onboarding the next wave of users into the digital economy.

Core Features and User Assistance

The system supports peer-to-peer (P2P) money transfers, peer-to-merchant (P2M) retail transactions, and QR code scanning for devices equipped with cameras. Users can also check account balances, review transaction histories, and manage their profiles. To onboard first-time users, the company has launched a voice-first, AI-driven helpline. The virtual assistant guides users through activation in English and 12 Indian regional languages. Amazon, Meta Lobby NPCI to Curb Google Pay and PhonePe Dominance in India’s UPI Ecosystem.

PhonePe indicated that upcoming updates will introduce further financial services to the platform, including utility bill payments, mobile recharges, and alternative verification processes. The service launch follows reported metrics from July 2026 showing PhonePe with a user base exceeding 71.5 crore registered accounts and a merchant network surpassing five crore partners nationwide.

(The above story first appeared on LatestLY on Aug 31, 2026 03:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).