No internet needed: PhonePe brings UPI payments to over 200m feature phone users
PhonePe has launched a UPI payment service for feature phone users that functions without an internet connection. The service uses SMS-based architecture to enable digital payments for millions of users in areas with limited connectivity.
Why it matters
This significantly expands financial inclusion by bringing digital payment infrastructure to users who do not own smartphones.
Fintech major PhonePe on Monday announced the launch of PhonePe UPI 123Pay, a service that allows feature phone users to make UPI transactions without requiring an internet connection.According to news agency PTI, the service makes PhonePe the first major third-party application provider (TPAP) to extend UPI payment capabilities to an estimated more than 200 million feature phone users across India.The service uses a proprietary technology stack and an SMS-based architecture, aimed at ensuring transaction reliability even in areas with limited 2G connectivity.Pre-bundled on select feature phonesPhonePe has partnered with handset manufacturers including Nokia, HMD, Lava International and itel to provide the service pre-bundled on their devices.“Bringing UPI to feature phones through PhonePe UPI 123Pay extends the benefits of digital payments beyond smartphones to every corner of the country,” Sameer Nigam, founder and CEO of PhonePe, said.He said…
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