PhonePe Launches UPI 123Pay: Bringing Digital Payments to 200 Million Feature Phone Users
In a major stride toward bridging the digital divide in India, fintech giant PhonePe has officially launched UPI 123Pay, a groundbreaking service that enables feature phone users to conduct UPI transactions without an active internet connection.
This initiative positions PhonePe as the first major Third-Party Application Provider (TPAP) to extend the convenience of UPI to an estimated 200 million feature phone users across the country. By leveraging a proprietary, SMS-based technology stack, the service is designed to maintain high transaction reliability, even in regions where connectivity is limited to basic 2G networks.
Strategic Partnerships for Widespread Adoption
To ensure seamless access, PhonePe has entered into strategic partnerships with prominent handset manufacturers, including Nokia, HMD, Lava International, and itel. Through these collaborations, the UPI 123Pay service will come pre-bundled on select feature phone models, allowing users to tap into the digital economy right out of the box.
“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. According to Nigam, this launch is a cornerstone of the company’s mission to foster financial inclusion, aiming to bring the “next 300 million users” into the formal digital financial ecosystem.
Versatile Functionality for Offline Users
Despite the absence of a smartphone interface, the platform offers a comprehensive suite of banking and payment features, including:
- Peer-to-peer (P2P) transfers: Sending money directly to other users.
- Peer-to-merchant (P2M) payments: Facilitating purchases at retail outlets.
- QR code payments: Supported on specific feature phones equipped with cameras.
- Account management: Allowing users to perform balance checks and view transaction histories.
Lowering the Barrier to Entry
Recognizing that many users may be new to digital financial services, PhonePe has introduced an AI-powered, voice-first helpline. This assistant offers step-by-step guidance in English and 12 regional Indian languages, ensuring that the onboarding process is intuitive and accessible for non-technical users.
Looking ahead, PhonePe plans to expand the platform’s capabilities with updates that will include utility bill payments, mobile recharges, and Aadhaar-based onboarding.
As of July, PhonePe boasts a massive user base of over 715 million registered users and a network of more than 50 million merchant partners. With the rollout of UPI 123Pay, the company is set to further consolidate its leadership in the Indian fintech landscape, ensuring that the benefits of the digital payments revolution are no longer restricted to smartphone users.
