Archive · 1 Sep 2026
PhonePe Brings Internet-Free UPI Payments to India’s Feature Phones
PhonePe has created a way for people with basic phones to make UPI payments.
They do not need a smartphone or an internet connection.
The service is called PhonePe UPI 123Pay.
It uses text messages to help payments work, even when mobile internet is weak.
People can send money to others and pay shops.
Phones with cameras can scan QR codes to pay.
Users can also check their bank balance and transaction history.
A voice-based AI helper explains how to activate the service in English and 12 Indian languages.
PhonePe says the service could help more people join digital payments.
PhonePe launched UPI 123Pay for India’s estimated 200 million-plus feature-phone users.
The service uses proprietary technology and SMS-based systems that can work with limited 2G connectivity.
Users can transfer money, pay merchants, manage bank accounts, check balances and view transaction histories.
Camera-equipped feature phones can use the service to scan and pay through QR codes.
The service is pre-bundled on selected Nokia, HMD, Lava International and Itel Mobile devices, with AI helpline support in English and 12 Indian languages.
- Who
- PhonePe, led by founder and CEO Sameer Nigam, launched the service in partnership with Nokia, HMD, Lava International and Itel Mobile.
- What
- PhonePe UPI 123Pay enables UPI payments and account-related services on feature phones without an internet connection.
- When
- The launch was announced on Monday; PhonePe’s reported user and merchant figures were stated as of July 2026.
- Where
- The service is available for feature-phone users across India, including areas with limited 2G connectivity.
- Why
- PhonePe says it aims to expand digital-payment access, support financial inclusion and bring the next 300 million users into the digital ecosystem.
- Service
- PhonePe UPI 123Pay
- Target users
- More than 200 million feature-phone users in India, according to PhonePe’s estimate
- Technology
- Proprietary technology using an SMS-based architecture designed to work with limited 2G connectivity
- Payment features
- Peer-to-peer transfers, peer-to-merchant payments and QR-code payments on compatible phones
- Account features
- Bank-account management, balance checks and transaction-history access
- Device partnerships
- The service is pre-bundled on selected Nokia, HMD, Lava International and Itel Mobile devices
- Support
- A voice-first AI helpline provides activation guidance in English and 12 Indian languages
- Company network
- PhonePe reported more than 71.5 crore registered users and over five crore merchants as of July 2026
Sources
PhonePe Launches UPI Payments For Feature Phone Users In India: Here's How It Works
No smartphone, no internet? PhonePe launches new UPI service for feature phone users
PhonePe launches UPI payment for feature phones without internet, boosts financial inclusion
