Feature phones get internet-free payments
Key Highlights
- PhonePe has launched PhonePe UPI 123Pay for feature phone users.
- The service enables UPI transactions without an internet connection.
- It uses an SMS-based architecture for transaction reliability.
- PhonePe has partnered with Nokia, HMD, Lava and Itel for the service.
- The platform supports peer-to-peer and merchant payments.
- PhonePe aims to extend digital payments to more than 200 million feature phone users.
News Story
New Delhi, August 31, 2026: Fintech company PhonePe has launched PhonePe UPI 123Pay, a new service designed to enable feature phone users to make UPI transactions without requiring an internet connection.
The company said the service is aimed at extending digital payment capabilities to an estimated more than 200 million feature phone users across India.
The platform uses a proprietary technology stack and an SMS-based architecture designed to support transactions even in areas with limited 2G connectivity.
PhonePe has partnered with handset manufacturers including Nokia, HMD, Lava International and Itel Mobile to offer the service pre-bundled on compatible devices.
Users will be able to make peer-to-peer transfers and peer-to-merchant payments through the platform.
Feature phones equipped with cameras will also be able to use QR code scanning for supported transactions.
The service will additionally allow users to manage their accounts, check balances and view transaction histories.
To support first-time users, PhonePe has introduced a voice-first, AI-powered helpline that provides activation guidance in English and 12 Indian languages.
PhonePe said future updates are expected to add services such as utility bill payments, mobile recharges and Aadhaar-based onboarding.
The company said the initiative is intended to expand digital financial access and bring more users into India’s digital payments ecosystem.
As of July 2026, PhonePe reported more than 71.5 crore registered users and a merchant network exceeding five crore partners.
