News in Short

• PhonePe UPI 123Pay lets feature phone users make UPI payments without an internet connection.
• Users can send money using a mobile number, contact or UPI ID.
• Feature phones with cameras can also scan QR codes to make payments.
• Users can check their bank balance and transaction history through the service.
• PhonePe initially supports select HMD, Nokia, Lava and Itel feature phones.

Smartphone-based UPI payments have become a part of everyday life in India, but they still leave out people who use basic feature phones or live in areas with limited internet connectivity. PhonePe is now trying to bridge that gap with UPI 123Pay, a service that brings essential UPI functions to compatible feature phones.

The biggest advantage is simple: you do not need an internet connection to make a payment.

What is PhonePe UPI 123Pay?

PhonePe UPI 123Pay is designed to let feature phone users access UPI services without relying on mobile data. The service uses SMS to process transactions, allowing payments even on devices with limited connectivity.

PhonePe says the service targets India’s more than 200 million feature phone users and can work in areas with limited 2G connectivity.

Users can make person-to-person transfers and merchant payments. They can also check their bank balance and view their transaction history.

How Can Users Make Payments?

Once UPI 123Pay is set up, users can send money using a contact, mobile number or UPI ID.

Compatible feature phones with cameras can also scan QR codes. After selecting the recipient, users need to verify the details, enter the amount and confirm the transaction using their UPI PIN.

This gives feature phone users access to a payment method that smartphone users have relied on for years.

Setting Up UPI 123Pay

Users can activate the service through the pre-installed PhonePe app on a supported feature phone.

During setup, users need to:

• Accept the terms and conditions.
• Select their bank.
• Enter the last six digits of their debit card and its expiry date.
• Create a UPI PIN.

PhonePe also offers an AI-powered voice helpline to guide users through the setup process. The helpline supports English and 12 Indian languages and can answer basic UPI-related questions.

Which Phones Support It?

PhonePe UPI 123Pay is initially available on selected feature phones from HMD, Nokia, Lava International and Itel Mobile.

HMD has confirmed support for models including the HMD 105 2G, HMD 110 2G, Nokia 105 Classic, Nokia 105 Single SIM, Nokia 105 Dual SIM, Nokia 106 and Nokia 123 Shield.

PhonePe plans to expand support to more feature phone models in the coming months.

More Services Are Coming

The current service focuses on essential UPI functions, but PhonePe has a wider roadmap. The company plans to add bill payments, mobile recharges and Aadhaar-based UPI registration through future updates.

That could make UPI 123Pay more useful for feature phone users who currently need separate methods to manage everyday payments and services.

Why This Could Be Useful

For someone using a feature phone, the biggest benefit is accessibility. They can make digital payments without buying a smartphone or depending on an active internet connection.

It could also help users in areas where mobile data connectivity remains unreliable. Since the service works through SMS, users can continue to access key payment functions even when internet connectivity is unavailable.

PhonePe’s approach also keeps the payment process familiar. Users still use their bank account and UPI PIN, while the service adapts UPI for simpler phones.

In short, UPI 123Pay extends digital payments beyond smartphones. For feature phone users, it offers a simpler way to send money, pay merchants and check basic banking information without needing mobile internet.