PhonePe has announced the launch of UPI 123Pay, an innovative digital payments solution, over which enables feature-phone users to perform UPI transactions even without an internet connection. The update is supposed to increase the reach of digital payments in India among populations that rely on basic mobile phones rather than smartphones.

The product is targeting India’s more than 200 million feature phone users, including those in rural areas and regions with limited smartphone penetration and internet data.

PhonePe UPI 123Pay: What Is It?

PhonePe’s UPI 123Pay is a digital payment solution that enables users to access core services and features of UPI directly on their feature phones. With the newly launched service, it becomes possible to make person-to-person or person-to-merchant payments, check the bank balance and perform several other operations without using mobile data.

The service is set to enable phone users around the country to leverage the benefits of smartphones, even if they do not have access to the latest cellular technology.

According to reports, the startup has incorporated technologies that work efficiently on feature phones, including Short Message Service (SMS), whereas PhonePe has announced the provision of voice assistance to further ease interactions with UPI.

This implies that the users will not necessarily need smartphones or mobile data to use UPI 123Pay.

PhonePe UPI 123Pay: How Does It Work?

Generally, the service has been designed in a manner that makes it convenient for feature phone users to execute digital transactions effortlessly. For starters, depending on the handset and service plan, users can access UPI services and features through guided instructions.

PhonePe has also announced the inclusion of an AI-powered multilingual voice assistant to help users navigate and activate the service and its offerings, including asking questions about UPI.

What Can Feature-Phone Users Do?

Currently, the users will be able to utilize the following digital payment features and services:

• Fund transfer to another bank account
• UPI payments to merchants
• Paying through UPI addresses
• UPI QR code scan
• Checking the bank balance and transaction history

Accessing other UPI services, including viewing and managing UPI-linked payment addresses and utilizing any other services launched by UPI.

The company expects the list of offerings to grow, including enabling bill payments and mobile recharge in the future.

Which Feature Phones Can Access PhonePe?

PhonePe UPI 123Pay has been launched on specific handsets, including Nokia, HMD, Lava, and Itel smartphones, among others. The company plans to add more phone brands in the future. Some of these handsets come with cameras that enable QR code scanning, thereby opening up more opportunities for making digital payments with feature phones.

Why Is PhonePe’s New Product Important?

• UPI has seen impressive growth in recent years, although only smartphones have been used for making such transactions. PhonePe’s latest offering is expected to contribute significantly to the growth of UPI transactions in India.
• The product is important because it will enable more Indians, including those in rural areas, to participate in the formal digital economy.
• In addition, the company targets to empower small businesses and older populations that may find it difficult to use smartphones and internet-based services.
• The company views the product as a way of promoting financial inclusion, as well as enabling more individuals to make digital payments beyond smartphones.

PhonePe UPI 123Pay: What’s the Difference between Smartphones and Feature Phones?

Generally, UPI payments have been made using smartphones and an internet connection. In most cases, the transactions are done using apps such as PhonePe, Google Pay, and Paytm. However, the newly launched service allows some feature phones to offer core UPI services without the need for smartphones or internet connections.

This implies that users will be able to make digital payments much more easily by utilizing key features on their keypad phones.

PhonePe’s Commitment towards Financial Inclusion and Digital Payments in India

India has been working hard to develop a robust digital payments ecosystem in recent years and currently records among the highest levels of digital payment transactions globally. However, smartphones and internet data have been a challenge, especially in rural areas. As a result, most Indians, including small businesses and older generations, have been reluctant to participate in the formal digital economy.

PhonePe wants to change that: By launching its latest update, the company seeks to connect more Indians to the digital payment space and promote financial inclusion.