PhonePe Launches UPI Payments for Feature Phones via 123Pay PhonePe has introduced a Unified Payments Interface (UPI) application tailored for feature phones, enabling users to conduct transactions without relying on mobile data. The SMS-based service, branded as PhonePe UPI 123Pay, is pre-installed on select devices from manufacturers such as Nokia, HMD, Lava, and itel. This initiative aims to expand access to digital payments for India’s extensive base of feature-phone users, who have historically been excluded from modern mobile banking services. The UPI 123Pay platform, which has been in development for four years, leverages an SMS-driven architecture to facilitate seamless financial transactions. Unlike traditional UPI apps that require internet connectivity, this version operates entirely through text messages, eliminating the need for mobile data. Users can send money to mobile numbers or UPI IDs directly through the service, making it accessible even in areas with limited or no internet infrastructure. PhonePe emphasized that the move aligns with the growing adoption of UPI in India, where the payment system has recorded unprecedented transaction volumes. As of the latest data, UPI transactions have surpassed billions of transactions monthly, driven by government initiatives to promote digital financial inclusion. By targeting feature-phone users, PhonePe seeks to bridge the gap between traditional banking and digital payment ecosystems, ensuring that even those without smartphones can participate in the digital economy. The pre-installed nature of the UPI 123Pay app on devices from Nokia, HMD, Lava, and itel underscores PhonePe’s strategic partnership with hardware manufacturers to integrate digital payment capabilities at the point of device production.#phonepe #nokia #itel #hmd #lava
