PhonePe, a leading fintech major, has announced the launch of PhonePe UPI 123Pay, a service that enables feature phone users to make UPI transactions without an internet connection.

The service, which uses a proprietary technology stack and SMS-based architecture, aims to promote financial inclusion among users who do not use smartphones.

Partnership with Handset Manufacturers

PhonePe has partnered with handset manufacturers such as Nokia, HMD, Lava International, and itel to provide the service pre-bundled on their devices.

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'Bringing UPI to feature phones through PhonePe UPI 123Pay extends the benefits of digital payments beyond smartphones to every corner of the country,' said Sameer Nigam, founder and CEO of PhonePe.

The initiative aims to promote financial inclusion and provide access to digital payments for users who do not have smartphones.

Features and Benefits

The platform allows users to make:

• P2P transfers
• P2M payments
• QR code payments on feature phones equipped with cameras
• Account management and balance checks
• Transaction history checks

Expansion of Digital Payments

The new service is aimed at expanding access to digital payments among users who do not use smartphones.

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As of July, PhonePe reported more than 71.5 crore registered users and a merchant network of over five crore partners.

PhonePe UPI 123Pay will help bridge the gap between feature phone users and the digital payment ecosystem.

Future Updates

The company said future updates would add more features, including utility bill payments, mobile recharges, and Aadhaar-based onboarding.