PhonePe has launched UPI 123Pay for feature-phone users across India, aiming to make digital payments accessible to people who use basic phones and do not have regular access to mobile data.
The service, rolled out on August 31, 2026, allows users to make several UPI transactions without requiring a smartphone or an active internet connection. The launch is particularly targeted at users in rural and semi-urban areas, where smartphone and high-speed internet penetration remains comparatively lower.
What Can Users Do With UPI 123Pay?
PhonePe's UPI 123Pay service allows feature-phone users to perform essential digital payment functions, including sending money using mobile numbers or UPI IDs, making merchant payments, checking account balances and scanning QR codes.
The service is designed to operate over 2G networks and does not require mobile data for transactions. This could make digital payments more accessible in areas where internet connectivity remains unreliable.
Users can also register for the service using their debit card details, providing a relatively simple onboarding process for people who may not have previously used UPI.
Nokia, HMD, Lava and itel Phones
The UPI 123Pay functionality comes pre-installed on selected feature phones from brands including Nokia, HMD, Lava and itel.
This means users buying supported devices can access the payment service without having to download or install a separate application.
The move expands PhonePe's reach beyond its traditional smartphone user base and could bring millions of feature-phone users into India's rapidly expanding digital payments ecosystem.
Voice AI Assistant in 13 Languages
One of the notable features of PhonePe's UPI 123Pay offering is its voice-based AI assistant, which supports 13 Indian languages.
The voice interface is intended to make digital payments easier for users who may not be comfortable navigating text-heavy menus or smartphone applications. Users can interact with the service through voice commands, making it potentially more accessible to first-time digital payment users.
Focus on Financial Inclusion
PhonePe CEO Sameer Nigam said the initiative is aimed at reaching the next 300 million users, particularly those in rural parts of India where smartphones are still not universally available.
The company believes feature-phone-based UPI payments can help expand access to digital financial services while reducing dependence on cash.
India has already emerged as one of the world's largest digital-payment markets, with UPI becoming an important part of everyday transactions. PhonePe's latest initiative seeks to take that convenience to users who have so far remained outside the smartphone-based digital economy.
Why UPI 123Pay Matters
The launch could be particularly significant for people who use basic phones, have limited data connectivity or live in areas with inconsistent internet coverage.
By combining offline payments, voice assistance and multiple Indian languages, PhonePe is attempting to make UPI more inclusive and accessible across different sections of the population.
The service could therefore become an important step towards bringing India's next wave of users into the country's digital payments ecosystem.
