PhonePe launches UPI 123Pay for feature phones

By Sohail Khan 31 August 2026, 3:47 pm

Benchmarks
Nifty24,080.40-95.25

Precious Metal
Gold (MCX) (Rs/10g.)155,250.00-1031.0

Enter search text:

Business News›Industry›Banking/Finance›Finance›No smartphone, no internet, no problem: PhonePe launches UPI 123Pay to let 200 million+ feature phone users make digital payments; here’s how it works

Read Today's Paper

No smartphone, no internet, no problem: PhonePe launches UPI 123Pay to let 200 million+ feature phone users make digital payments; here’s how it works
Synopsis

PhonePe has unveiled UPI 123Pay, a new service for feature phone users that enables seamless transactions without an internet connection. The initiative targets more than 200 million users, helping expand access to digital payments across India. It supports both peer-to-peer and merchant payments using mobile numbers or UPI IDs, with future updates expected to include bill payments and mobile recharges.

PhonePe UPI 123Pay image — PhonePe UPI 123Pay

PhonePe on Monday launched UPI 123Pay, a new service that allows feature phone users across India to make UPI payments without an internet connection.

The service is aimed at India’s more than 200 million feature phone users and is designed to expand access to digital payments beyond smartphones. PhonePe said it is the first major third-party application provider (TPAP) to bring UPI payments to feature phones at this scale.

The launch is also aimed at improving financial inclusion, particularly in rural and semi-urban areas where smartphone access and reliable internet connectivity can still be limited.

How does PhonePe UPI 123Pay work on feature phones?

PhonePe UPI 123Pay uses an SMS-based architecture to enable UPI transactions without requiring an internet connection.

The service is designed to work even in areas with limited 2G connectivity. Users can make peer-to-peer payments using mobile numbers or UPI IDs, as well as peer-to-merchant payments through UPI IDs and QR codes on supported devices.

Feature phone users will also be able to check their bank account balance and view their transaction history through the service.

Which feature phones support PhonePe UPI 123Pay?

PhonePe UPI 123Pay will come pre-bundled on selected devices from Nokia, HMD, Lava International and Itel Mobile, part of Transsion Holdings.

PhonePe said it plans to add partnerships with more handset manufacturers in the coming months.

The service is built on a technology stack developed specifically to enable UPI payments on feature phones.

What features will PhonePe UPI 123Pay offer?

The service allows feature phone users to make several types of digital payments without relying on mobile data.

Users can currently make peer-to-peer transfers through mobile numbers or UPI IDs and make merchant payments using UPI IDs or QR code scanning on feature phones equipped with cameras.

They can also manage their accounts, check balances and view transaction histories.

PhonePe said future updates will add features such as bill payments, mobile recharges and Aadhaar-based onboarding onto UPI.

PhonePe launches AI-powered helpline for feature phone users

To help users activate and use the service, PhonePe has also introduced a voice-first, AI-powered helpline.

Unlike traditional IVR systems that rely on fixed menu options, the conversational voice assistant is designed to provide step-by-step guidance and answer basic UPI-related questions.

The assistant supports English and 12 Indian languages and uses speech processing and AI reasoning to help users complete the activation process.

How to register for PhonePe UPI 123Pay

Users can register for the service directly on a supported feature phone without using a smartphone or an internet connection.

The process involves:

Open the pre-installed PhonePe app on the feature phone.
Read and accept the terms and conditions to complete device registration.
Select the user's bank from the list.
Enter the last six digits of the debit card and its expiry date.
Set a UPI PIN.
Once the UPI PIN is set, the UPI ID becomes active and users can begin making payments through PhonePe UPI 123Pay.

How to make UPI payments on a feature phone

PhonePe users can access several payment options through the feature phone app, including Scan & Pay, contacts, mobile numbers and UPI IDs.

To pay using a mobile number or UPI ID:

Open the PhonePe application.
Select ‘Pay to Mobile Number/Pay to UPI ID’.
Enter the recipient's mobile number or UPI ID.
Check the payment details.
Enter the amount and UPI PIN, then press OK to confirm the payment.
The next screen will confirm whether the payment was successful.

Feature phones with camera support can also use the Scan & Pay option to make payments by scanning a QR code.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)

Read More News on
PhonePe UPI 123PayUPI 123Pay feature phonesPhonePe UPI without internetUPI payments without internetUPI for feature phonesPhonePe feature phone paymentsUPI 123Pay Indiadigital payments without internetUPI feature phone usersPhonePe digital payments

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year