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Feature Phones Go Digital: UPI Payments Now Offline!
1 Sep
Summary
- UPI payments can now be made on feature phones without internet.
- Service uses SMS-based architecture for reliable transactions.
- Aims to onboard the next 300 million users into digital payments.
PhonePe introduced 'UPI 123Pay' on August 31, 2026, a significant advancement in digital payments. This new service allows feature phone users to conduct UPI transactions without needing an internet connection, potentially reaching over 200 million individuals across the country.
The service leverages a proprietary SMS-based architecture, ensuring reliable transactions even in areas with limited 2G connectivity. PhonePe has partnered with leading handset manufacturers like Nokia and Lava to pre-bundle the service on their devices.
This initiative is set to drive financial inclusion by bringing the next 300 million users into the digital fold. Feature phone users can now perform peer-to-peer transfers and peer-to-merchant payments. For camera-equipped phones, QR code scanning is also supported.
Users can manage accounts, check balances, and review transaction histories. A dedicated AI-powered helpline is available in 12 Indian languages to guide first-time users through activation. Future updates will expand capabilities to include utility bill payments and recharges.
