PhonePe extends UPI payments to feature phones
Fintech firm PhonePe has launched its UPI 123Pay service for feature phones, aiming to bring an estimated 200 million users into India's homegrown digital payments network.
Fintech company PhonePe announced on Monday the launch of its Unified Payments Interface (UPI) service for feature phones. The new offering, named PhonePe UPI 123Pay, is designed to extend India's digital payment network to approximately 200 million users of these simpler devices.
The service utilizes an SMS-based architecture, enabling transactions even in areas with limited internet connectivity. PhonePe states it is the first major third-party application provider (TPAP) to offer UPI payment capabilities to feature phone users. The company aims to onboard the next 300 million users to the digital payments ecosystem and promote financial inclusion.
PhonePe UPI 123Pay will be pre-bundled on select Nokia, HMD, Lava, and Itel devices, with the company exploring partnerships with other manufacturers. Users can perform peer-to-peer money transfers, peer-to-merchant payments, QR code payments (on camera-equipped phones), and manage bank accounts and transaction histories. Upcoming updates are set to introduce features such as bill payments and recharges.
To facilitate setup, PhonePe has introduced a voice-first, AI-powered helpline that guides users through the process and answers basic UPI-related queries in multiple Indian languages. Transaction limits for UPI 123Pay were recently increased from Rs 5,000 to Rs 10,000.