How To Register and Use PhonePe UPI 123Pay: Step-by-Step Guide for Feature Phone Users
PhonePe launched 'UPI 123Pay' to enable offline UPI transactions via SMS for over 200 million feature phone users across India. Partnering with major device brands, it includes voice-first AI assistance and supports peer-to-peer and merchant payments. Scroll below to know how users can register and use PhonePe UPI 123Pay on their devices.
Fintech major PhonePe has rolled out "PhonePe UPI 123Pay", a service designed to bring Unified Payments Interface (UPI) transactions to feature phone users without requiring internet connectivity. With this launch, PhonePe becomes 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. The initiative is aimed at advancing financial inclusion, targeting semi-urban and rural areas where reliable internet access remains limited.
Technology and Partnerships
The new platform operates on a proprietary technology stack utilizing an SMS-based architecture to maintain transaction reliability in areas with restricted or 2G-only connectivity. To facilitate accessibility, PhonePe has partnered with major handset manufacturers - including Nokia, HMD, Lava International, and Itel Mobile (Transsion Holdings) - to have the service pre-bundled directly onto new devices. Digital Payments Without Internet: PhonePe Rolls Out 'UPI 123Pay' for Feature Phone Users Nationwide.
"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 feature is designed to onboard the next wave of users into the digital economy.
How To Register for PhonePe UPI 123Pay
Setting up the service on a feature phone does not require a smartphone or an internet connection. Users can complete the registration process directly through the device by following these steps:
- Open the PhonePe application pre-installed on the feature phone.
- Read and accept the terms and conditions to complete the automated device registration.
- Select your bank from the provided list of options.
- Enter the last 6 digits of your debit card along with its expiry date.
- Set your UPI PIN.
- Once completed, your UPI ID will be active for transactions.
How To Make Payments and Use Services
The system supports peer-to-peer (P2P) transfers via mobile numbers or UPI IDs, as well as peer-to-merchant (P2M) payments. Feature phones equipped with cameras can also utilize a "Scan and Pay" option for QR codes. To execute a transaction, users open the application, select options such as "Pay to Mobile Number" or "Pay to UPI ID," enter the recipient's details and the transfer amount, and validate the payment by entering their UPI PIN. Users can also manage account balances and view transaction histories directly from the platform. Fake PhonePe App Scam: Viral Video Warns Shopkeepers of Cloned UPI Apps Siphoning Funds Without Transfer.
How Users Can Use UPI on Feature Phones
To assist first-time users, PhonePe has introduced a voice-first, AI-driven helpline. The virtual assistant provides step-by-step activation guidance and answers queries in English and 12 Indian regional languages. The company stated that upcoming updates will introduce additional features, including utility bill payments and mobile recharges.
(The above story first appeared on LatestLY on Aug 31, 2026 04:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
