- PhonePe has introduced a new way for feature phone users to access UPI payments.
- The service is designed to work even where internet connectivity is limited.
- It will initially arrive on select feature phone models from major manufacturers.
PhonePe has made quite a significant effort with the announcement of UPI 123Pay for feature phones in India. The most surprising thing about PhonePe UPI 123Pay is that users can now make UPI payments without an internet connection. The service is intended to be helpful for feature phone users, especially in rural and semi-urban areas where smartphone and internet access are limited.
According to Paytm, it is the first third-party application provider (TPAP) to bring UPI payments to feature phone users. The company asserts that more than 200 million people in India use feature phones, and the service is aimed at becoming practical for those users.
PhonePe UPI 123Pay uses SMS-based technology
PhonePe UPI 123Pay uses an SMS-based architecture, which allows transactions to work in areas where the connectivity is limited. It is functionable with 2G connectivity, says Paytm.
Users can make regular payments using a mobile number or UPI ID. Apart from that, merchant payments are made possible using UPI IDs and, in built-in camera-equipped feature phones, by scanning QR codes.
Furthermore, the service lets users check their bank balance and view transaction history, eliminating the need to visit a bank branch for such activity. In future updates, the service will bring bill payments, mobile recharge, and Aadhaar-based UPI setup.
AI voice helpline supports 13 languages
Along with the service, PhonePe has also introduced a voice-first AI-powered helpline, which is meant to help users set up and use the new service, UPI 123Pay.
Using the AI-powered helpline, users can get conversational assistance such as step-by-step guidance and answers to basic UPI-related queries. Currently, the AI voice helpline supports English and 12 Indian languages and utilizes speech processing and AI technologies instead of depending on conventional IVR menus.
How to register for PhonePe UPI 123P
If you are finding it difficult to register on the service, we are here to make things easier. Here’s how users can register for the service directly from an eligible feature phone without an internet connection.
To activate UPI 123Pay, users simply have to:
- Open the pre-installed PhonePe app on the feature phone.
- Sign up on the app and complete the registration process.
- Select your bank from the list.
- Enter the last six digits of your debit card and input the expiry date (where required).
- Set a UPI PIN for security.
That’s it. Once you create the UPI PIN, the UPI ID becomes activated, and users can start using the service and making payments.
How to make payments using UPI 123Pay
Once you register for the service and activate the account, users have to open PhonePe and choose a payment option, such as a mobile number or UPI ID.
Then, they are required to enter the receiver’s details and payment amount. Once these details are inserted, you must verify the information and finally enter your UPI PIN to process the transaction.
Users who own a feature phone with a built-in camera can also use the Scan & Pay option to scan a QR code and proceed with the payment. After a successful transaction, a confirmation message appears on the screen.
Availability
The service will initially come pre-installed on select devices from Nokia, HMD, Lava, and Itel. More manufacturers are expected to join the queue in the coming months.
Sameer Nigam, founder and CEO of PhonePe, shared his excitement, saying the company is focusing on extending digital payments beyond smartphones. He notes that the new service will help bring more users into India’s digital financial ecosystem.
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