People using feature phones in India can now send money, scan QR codes and check their bank balance without mobile internet. PhonePe has launched UPI 123Pay, bringing UPI payment features to basic keypad phones.
The service is mainly aimed at people who still use feature phones. According to PhonePe, more than 200 million people in India use feature phones.
With this launch, PhonePe has become the first major third-party application provider, or TPAP, to bring its UPI payment service to feature phones.
Table of contents
- What Is PhonePe UPI 123Pay?
- How PhonePe UPI 123Pay Works Without Internet
- Which Phones Will Get PhonePe UPI 123Pay?
- How to Set Up PhonePe UPI 123Pay on a Feature Phone
- How to Make a Payment Using PhonePe UPI 123Pay
- PhonePe Introduces AI Voice Assistant for Feature Phone Users
- Feature Phones With Built-In UPI Support You Can Buy
What Is PhonePe UPI 123Pay?
UPI 123Pay is a payment system developed by the National Payments Corporation of India (NPCI) for people using feature phones.
It allows users to make UPI payments without mobile data or an internet connection.
PhonePe has developed its own system using the UPI 123Pay framework. This gives feature phone users access to several payment features that are normally available on smartphone UPI apps.
TPAP simply means a third-party company such as PhonePe or Google Pay that connects with the UPI network to provide payment services. The company itself does not have to be a bank.
How PhonePe UPI 123Pay Works Without Internet
One of the biggest highlights of PhonePe UPI 123Pay is that it uses an SMS-based system.
Instead of depending on mobile internet, the service uses text messages in the background to process transactions. This means users can make payments even in places where mobile data is slow or unavailable.
Users can make person-to-person payments using a mobile number or UPI ID. They can also pay merchants using UPI IDs and QR codes.
Feature phones with a camera can use Scan and Pay, making it easier to pay at shops without manually entering a mobile number or UPI ID.
The service also allows users to:
- Check their bank balance
- View transaction history
- Send money using a mobile number
- Send money using a UPI ID
- Make merchant payments
- Scan QR codes on supported phones
PhonePe says more features will be added later, including bill payments, mobile recharges and Aadhaar-based UPI registration.
Which Phones Will Get PhonePe UPI 123Pay?
PhonePe UPI 123Pay will come pre-installed on select feature phones from several popular brands.
The initial list includes Nokia, HMD, Lava International and Itel Mobile.
PhonePe says more feature phone manufacturers will join the platform in the coming months.
Having PhonePe already installed on the phone makes the process easier for new users. They will not need to download an app separately, which can be useful in rural and semi-urban areas where internet connectivity may not always be reliable.
How to Set Up PhonePe UPI 123Pay on a Feature Phone
Users do not need a smartphone or an internet connection to complete the registration process.
Here is how to activate PhonePe UPI 123Pay:
| Step | What to Do |
|---|---|
| 1 | Open the PhonePe app already installed on the feature phone |
| 2 | Read and accept the terms and conditions to start device registration |
| 3 | Select your bank from the list |
| 4 | Enter the last six digits of your debit card and its expiry date |
| 5 | Create your UPI PIN and your UPI ID will be activated |
Once the setup is complete, users can start making UPI payments from their feature phone.
How to Make a Payment Using PhonePe UPI 123Pay
The payment process has been kept simple for keypad phone users.
| Step | Action |
|---|---|
| 1 | Open PhonePe and select Scan and Pay, Contact Book, Mobile Number or Pay to UPI |
| 2 | Choose Pay to Mobile Number or Pay to UPI ID |
| 3 | Enter the recipient’s mobile number or UPI ID |
| 4 | Check the details, enter the amount and UPI PIN, and confirm the payment |
| 5 | The next screen will show the payment confirmation |
Feature phones with a camera can directly use the Scan and Pay option.
This makes the payment experience similar to using a smartphone UPI app at a shop. Users can simply scan the merchant’s QR code and complete the transaction.
PhonePe Introduces AI Voice Assistant for Feature Phone Users
Setting up UPI on a keypad phone may be difficult for people using digital payments for the first time.
To make the process easier, PhonePe has introduced an AI-powered voice helpline.
Instead of using a traditional IVR system with fixed menu options, users can speak with the assistant in a more natural way.
The voice assistant supports English and 12 Indian languages.
It uses speech processing and AI to guide users through the UPI activation process. Users can also ask basic questions about UPI and get help while setting up the service.
Sameer Nigam, Founder and CEO of PhonePe, said bringing UPI to feature phones is an important step towards connecting the next 300 million users with India’s digital financial system.
Feature Phones With Built-In UPI Support You Can Buy
There are already several feature phones available in India that offer built-in UPI payment support.
Here are some options for buyers looking for a basic phone with UPI features.
| Phone | Key Highlight | Where to Buy |
|---|---|---|
| Nokia 110 with Built-in UPI App | Scan and Pay, rear camera and long battery life | Check price on Amazon |
| itel Super Guru 4G | Dual 4G, built-in UPI app and YouTube support | View on Amazon |
| Lava A2 Smart (2025) | 2.4-inch display, built-in UPI payments and auto call recording | See listing on Amazon |
| itel Super Guru 4G Max | 3-inch display, AI voice assistant and cloud app support | Buy on Amazon |
PhonePe has also released a video walkthrough explaining how to set up and use UPI 123Pay on feature phones.
Overall, PhonePe UPI 123Pay could make digital payments much easier for people who still use basic keypad phones. The biggest advantage is that users do not need a smartphone or mobile internet to make UPI payments.
With support for QR code payments, UPI IDs, mobile number transfers, balance checks and multiple Indian languages, the service brings many important UPI features to feature phone users.