Yesterday, PhonePe announced the launch of PhonePe UPI 123Pay, bringing UPI capability to feature phone users across India without the need for an internet connection.
No smartphone? No internet? No problem. @PhonePe becomes the first major TPAP to launch PhonePe UPI 123Pay, extending digital payments to India’s 200M+ feature phone users!
🔹 Works offline via robust SMS tech
🔹 Pre-bundled on Nokia, HMD, Lava & itel
🔹 Supports P2P & QR…— PhonePe (@PhonePe) August 31, 2026
PhonePe UPI 123Pay for feature phones in India
With this capability, PhonePe becomes the first major third-party application provider (TPAP) to extend UPI payments to India’s 200 million+ feature phone users.
PhonePe UPI 123Pay utilises a robust SMS-based architecture, ensuring transactions go through even in regions with limited 2G connectivity. The platform enables seamless peer-to-peer (P2P) transfers via mobile numbers or UPI IDs, alongside peer-to-merchant (P2M) payments through UPI IDs and QR code scanning.
Feature phone users can also manage their accounts, check account balances and view transaction histories. Upcoming updates will introduce advanced capabilities previously unavailable on feature phones, including bill payments, recharges, and Aadhaar-based onboarding onto UPI.
PhonePe has also introduced a voice-first, AI-powered helpline to guide feature phone users through setup and activation. The conversational voice assistant provides support in English and 12 Indian languages. Powered by advanced speech processing and AI reasoning, the assistant delivers step-by-step activation guidance and answers fundamental UPI queries for a secure, frictionless experience.
How to register for PhonePe UPI 123Pay?
- Open the PhonePe app pre-installed on your feature phone.
- Read & Accept the Terms & Conditions to complete the automated device registration.
- Select your bank from the options list.
- Enter the last 6 digits of your debit card and its expiry date.
- Set your UPI PIN. Your UPI ID is now active, and you can begin making payments immediately using PhonePe UPI 123Pay.
How to make payments on the PhonePe app?
- Users can open the PhonePe app on the feature phone and explore multiple ways to pay: Scan & Pay/ Contact Book/ Mobile Number or Pay to UPI
- Users can select “Pay to Mobile Number/Pay to UPI ID”
- Enter the mobile number/ UPI ID
- For feature phones with camera support, users can also use the “scan and pay” option to make payments
- Validate the details. Enter the amount and UPI PIN. Press OK to confirm and pay
- Users can check the next screen confirming successful payment
Availability
The service will come pre-bundled on Nokia, HMD, LAVA International and Itel Mobile- Transsion Holdings devices, with other handset manufacturer partnerships to follow in the coming months.
