PhonePe, an Indian digital funds and monetary companies firm, has launched UPI 123Pay for function telephones in India, permitting customers to make UPI funds with out an web connection.

The corporate mentioned the service is geared toward India’s greater than 200 million function telephone customers and is meant to increase digital payments to individuals who might not have entry to smartphones or dependable cell information.

PhonePe mentioned it was the primary main third-party utility supplier, or TPAP, to increase UPI funds to function telephones.

The service will come pre-bundled on gadgets from Nokia, HMD, Lava Worldwide and Itel Cell, a part of Transsion Holdings. PhonePe mentioned partnerships with different handset producers would comply with within the coming months.

PhonePe UPI 123Pay makes use of an SMS-based system designed to work in areas with restricted 2G connectivity.

Customers can ship cash to different individuals utilizing cell numbers or UPI IDs and make funds to retailers by means of UPI IDs. Characteristic telephones with digital camera help can be used to scan QR codes for funds.

The service additionally permits customers to verify account balances, handle their accounts and examine transaction histories.

PhonePe mentioned future updates will add invoice funds, recharges and Aadhaar-based onboarding to UPI.

The corporate has additionally launched an AI-powered voice helpline to help function telephone customers with organising and utilizing the service.

The voice assistant helps English and 12 Indian languages. PhonePe mentioned it’s going to present step-by-step steering throughout activation and reply fundamental questions on UPI, quite than requiring customers to navigate typical interactive voice response menus.

Sameer Nigam, founder and CEO of PhonePe, mentioned the launch was geared toward extending entry to digital funds past smartphone customers.

“Bringing UPI to function telephones by means of PhonePe UPI 123Pay extends the advantages of digital funds past smartphones to each nook of the nation,” he mentioned.

“To us, that is what constructing for India truly means – assembly individuals the place they’re to drive a very common wave of economic inclusion that may onboard the following 300 million customers into the digital monetary fold,” he added.

How PhonePe UPI 123Pay works

Customers can register for PhonePe UPI 123Pay on a appropriate function telephone with out utilizing a smartphone or an web connection.

They should open the pre-installed PhonePe app, settle for its phrases and circumstances and choose their financial institution. Customers are then required to enter the final six digits of their debit card and its expiry date earlier than setting a UPI PIN.

As soon as registration is accomplished, customers could make funds utilizing a cell quantity or UPI ID. On function telephones with digital camera help, funds can be made by scanning a QR code.

To finish a transaction, customers confirm the recipient’s particulars, enter the quantity and their UPI PIN, and ensure the cost.

PhonePe’s transfer into feature-phone UPI funds follows its acquisition of Gupshup’s GSPay expertise stack in June 2025. GSPay was constructed on NPCI’s UPI 123Pay system, and PhonePe mentioned on the time that it deliberate to customize the expertise to develop its personal UPI service for function telephones.

The launch comes as PhonePe continues to guide India’s UPI market by transaction quantity.

The platform processed about 10.86 billion UPI transactions in July 2026, in contrast with 10.48 billion in June, in accordance with information launched by the NPCI.

These transactions have been price about Rs 14.44 lakh crore.

UPI as an entire processed about 23.66 billion transactions price Rs 29.88 lakh crore in July.