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Technology

PhonePe Launches Internet-Free UPI for Feature Phones, Boosting Digital Access in India

· · 2 min read

PhonePe has rolled out its UPI 123Pay service for feature phones across India, enabling internet-free digital payments. This expansion uses SMS for transactions, reaching over 200 million users in areas with limited connectivity.

Digital payments have become increasingly common in India, yet millions of users relying on basic feature phones, especially in areas with unstable internet, have faced significant limitations. To bridge this digital divide, PhonePe has announced the launch of its UPI 123Pay service for compatible feature phones nationwide, enabling secure transactions without requiring a mobile internet connection.

Expanding Digital Payments to Millions

The new UPI 123Pay service by PhonePe aims to bring the convenience of digital transactions to over 200 million feature phone users across India. This initiative is particularly impactful for individuals in regions with limited 2G connectivity or those who simply do not have access to smartphones. By leveraging SMS technology, the service allows users to conduct essential banking activities and payments seamlessly.

Key Features and Functionality

Users of PhonePe's UPI 123Pay can perform a range of transactions, including person-to-person money transfers, merchant payments, checking bank balances, and reviewing transaction history. The company also plans to introduce additional functionalities such as bill payments, mobile recharges, and Aadhaar-based UPI registration in the near future.

The service operates by using SMS for secure communication, ensuring that transactions can be completed even in the absence of an internet connection. This robust approach makes digital payments more accessible and reliable for a wider population.

Supported Devices and Easy Setup

Initially, PhonePe UPI 123Pay is available on select models from manufacturers like HMD, Nokia, Lava International, and Itel Mobile. Specific supported devices include the HMD 105 2G, HMD 110 2G, Nokia 105 Classic, Nokia 105 Single SIM, Nokia 105 Dual SIM, Nokia 106, and Nokia 123 Shield, with more models expected to be added.

Activating the service is straightforward. Users can utilize the pre-installed PhonePe app on their feature phone, accept the terms, select their bank, input the last six digits and expiry date of their debit card, and then create a UPI PIN. Once registered, payments can be made by selecting a contact, mobile number, or UPI ID. For camera-equipped phones, QR code scanning is also supported. Transactions are completed by verifying the recipient, entering the amount, and confirming with the UPI PIN.

Multilingual AI Voice Support

To ensure widespread adoption and ease of use, PhonePe has integrated an AI-powered voice helpline. This support system is available in English and 12 Indian languages, offering assistance with activation guidance and answering common UPI-related queries, further simplifying the digital payment experience for users across diverse linguistic backgrounds.

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