PhonePe launches UPI payments for feature phone users

Bengaluru: PhonePe has launched the UPI 123Pay, which brings UPI payment capabilities to feature phone users across the country without the need for an internet connection. With this, PhonePe becomes the first major third-party application provider (TPAP) to extend UPI payments to India's over 200 million feature phone users.

The service will come pre-bundled on Nokia, HMD, Lava International and Itel Mobile - Transsion Holdings devices, with other handset manufacturer partnerships to follow in the coming months, PhonePe said.

PhonePe UPI 123Pay utilises SMS-based architecture, ensuring transactions go through even in regions with limited 2G connectivity. The platform enables peer-to-peer (P2P) transfers via mobile numbers or UPI IDs, alongside peer-to-merchant (P2M) payments through UPI IDs and QR code scanning. Beyond payments, feature phone users can manage their accounts, check account balances, and view transaction history.