PhonePe Launches UPI Payments for Feature Phones
Walmart-owned PhonePe has launched UPI payment services for feature phones, enabling digital transactions without internet. The service aims to extend digital payment accessibility to over 200 million users.
Fintech major PhonePe, owned by Walmart, has introduced Unified Payments Interface (UPI) payment capabilities for feature phones, enabling digital transactions without an internet connection.
The service, named PhonePe UPI 123Pay, aims to bring UPI features to over 200 million feature phone users in India. PhonePe claims to be the first major third-party application provider (TPAP) to offer UPI payments at scale to this user segment.
PhonePe UPI 123Pay will be pre-installed on devices from manufacturers including Nokia, HMD, Lava International, and Itel Mobile. The company plans to onboard more handset partners in the coming months.
The system operates using an SMS-based architecture, functioning even in areas with limited 2G connectivity. Users can make peer-to-peer transfers and merchant payments using mobile numbers, UPI IDs, or QR codes on compatible devices. PhonePe has also launched an AI-powered voice helpline in 13 languages to assist users with service activation.