PhonePe launches internet-free UPI payments for India’s feature phones
Babushahi Bureau
New Delhi, September 1, 2026: PhonePe has launched PhonePe UPI 123Pay, allowing feature phone users across India to make UPI payments and transfer money without requiring an internet connection.
The company said the service is aimed at expanding digital payment access to India’s more than 200 million feature phone users, particularly in rural and semi-urban areas where smartphones and reliable internet connectivity may not be readily available.
PhonePe said it is the first major third-party UPI application provider to bring its payment services to feature phones through this platform. The service will initially come pre-installed on select devices from Nokia, HMD, Lava International and Itel Mobile, with more handset manufacturers expected to join.
The SMS-based system is designed to work even in areas with limited 2G connectivity. Users can make person-to-person payments through mobile numbers or UPI IDs, while merchant payments can be made using UPI IDs and, on supported devices, QR code scanning.
Feature phone users will also be able to check their bank balances and transaction histories through the service. PhonePe said future updates will add facilities such as bill payments, mobile recharges and Aadhaar-based UPI onboarding.
To assist users with activation and setup, PhonePe has introduced an AI-powered, voice-based helpline that provides guidance in English and 12 Indian languages. The company said the service is designed to provide step-by-step assistance without relying on conventional IVR menus.
PhonePe Founder and CEO Sameer Nigam said extending UPI to feature phones would help bring digital payments to people who remain outside the smartphone-based financial ecosystem.
The company said users can activate the service directly on a compatible feature phone by selecting their bank, entering the required debit card details and setting a UPI PIN. Once activated, users can initiate payments through options including mobile numbers, UPI IDs, contact lists and QR scanning on compatible phones.
PhonePe said the initiative is part of its broader effort to expand access to digital financial services and bring more users into India’s digital payments ecosystem.