NEW DELHI: PhonePe has launched 'UPI 123Pay' on Monday, a service that enables Unified Payments Interface (UPI) transactions for users without an internet connection. The company has partnered with feature phone manufacturers like Nokia, HMD, Lava International, and Itel Mobile to provide the service preloaded on their devices.
With this launch, PhonePe claims to have become the first major third-party application provider to extend digital payment capabilities to an estimated over 200 million non-smartphone users across the country.
"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, PhonePe.
The service is built on a proprietary technology stack and utilises an SMS-based architecture to ensure transaction reliability even in regions with limited 2G connectivity.
Nigam said the initiative aims to drive financial inclusion by onboarding the "next 300 million users" into the digital fold.
The platform allows users to perform peer-to-peer (P2P) transfers and peer-to-merchant (P2M) payments.
The service also supports QR code scanning for feature phones equipped with cameras. Additionally, users can manage accounts, check balances and view transaction histories.
To assist first-time users, the company has introduced a voice-first, AI-powered helpline. The assistant provides step-by-step activation guidance in English and 12 Indian languages.
The company said future updates will introduce additional capabilities, such as utility bill payments, recharges and Aadhaar-based onboarding.
As of July 2026, PhonePe reported a user base of over 71.5 crore registered users and a merchant network of over five crore partners.
(With inputs from PTI)