The service is aimed at feature phone users who may not have access to smartphones or reliable mobile internet. PhonePe said the service will initially be available on select devices from Nokia, HMD, Lava International and Itel Mobile, with more handset makers expected to be added later.
UPI 123Pay uses an SMS-based architecture and is designed to work even in areas with limited 2G connectivity. Users can make peer-to-peer (P2P) transfers using a mobile number or UPI ID and make merchant payments using a UPI ID or, where supported, by scanning a QR code.
The service also allows users to check their bank account balance and transaction history. PhonePe said features such as bill payments and recharges, along with Aadhaar-based UPI onboarding, will be added in future updates.
How to register for PhonePe UPI 123Pay
Users do not need a smartphone or an internet connection to register. On a supported feature phone, users can:
- Open the pre-installed PhonePe app.
- Accept the terms and conditions to complete device registration.
- Select their bank from the list.
- Enter the last six digits of their debit card and its expiry date.
- Set their UPI PIN.
Once the process is completed, the UPI ID becomes active and users can start making payments.
How to make a UPI payment on a feature phone
To make a payment, users can open the PhonePe application and choose an available payment option, including mobile number, UPI ID, contact book or scan and pay on supported camera-enabled feature phones.
They can then:
- Select Pay to Mobile Number/Pay to UPI ID.
- Enter the recipient’s mobile number or UPI ID.
- Verify the recipient details and enter the amount.
- Enter the UPI PIN and confirm the transaction.
- Check the confirmation screen after the payment is completed.
PhonePe has also introduced a voice-based helpline to assist users with activation and basic UPI-related queries. The company said the service supports English and 12 Indian languages.The launch comes as UPI payment services expand beyond smartphones. NPCI’s UPI 123Pay framework was introduced to enable UPI transactions on feature phones and other channels without requiring an internet connection.
PhonePe said its feature-phone service is currently being rolled out through select handset partnerships.
First Published: Aug 31, 2026 10:51 AM IST
