PhonePe Launches UPI 123Pay to Serve Over 200 Million Feature Phone Users

Key facts

• PhonePe has launched UPI 123Pay, an SMS-based UPI payment service for feature phones without internet connectivity.
• The service targets over 200 million feature phone users in India, making PhonePe the first major third-party UPI app to extend payments to this segment.
• UPI 123Pay will be pre-installed on feature phones from Nokia, HMD, Lava International, and Itel, with additional handset partnerships expected.
• The service supports peer-to-peer transfers, merchant payments via UPI IDs and QR codes, along with account balance checks and transaction history.
• Future updates will add bill payments, mobile recharges, and Aadhaar-based UPI onboarding.
• PhonePe has introduced an AI-powered voice helpline supporting English and 12 Indian languages to assist users with activation and UPI-related queries.