PhonePe is preparing to launch UPI payment app for feature phones, no need for internet
PhonePe is planning to launch a UPI solution for feature phone users in India. It will be based on NPCI's UPI 123Pay and Gupshup's GSPay tech stack. It will support P2P transfer, offline QR payments, and money receiving. This service will be launched in a few quarters. The company informed that it has purchased the intellectual property (IP) of Gupshup's proprietary GSPay technology stack.
PhonePe announced that it is set to unveil the Unified Payments Interface (UPI) solution for feature phone users in India. PhonePe, a digital payments and financial services company, said its upcoming payments solution will be based on NPCI's UPI 123Pay technology. It will be developed based on the GSPay tech stack of the conversational engagement platform Gupshup, and the company is set to provide basic UPI feature support on feature phones. But the service mentioned that it will take a few quarters to provide UPI service in the country.
In a press release, the company announced that it has bought the intellectual property (IP) of Gupshup's proprietary GSPay technology stack. PhonePe will now customize this platform and build its own UPI solution on top of it. Let us tell you that Gupshup launched GSPay in 2023 as an SMS-based payment experience for feature phones.
PhonePe said that GSPay is built on the UPI 123Pay service of the National Payments Corporation of India (NPCI), which was launched in 2022 by the then RBI Governor Shaktikanta Das. Now the company will extend GSPay's technology stack and create its own UPI solution.
UPI 123Pay is a real-time UPI solution that does not require internet service and is designed for users with feature phones and limited connectivity. It offers four transaction methods, including calling an interactive voice response (IVR) number, an app-based service, a missed call-based approach, and a sound-based proximity payment system.
The company's UPI solution will also offer several features. It will support person-to-person (P2P) transfers, offline QR code-based payments, and allow users to receive money from other UPI users on their mobile numbers or self-QR codes. PhonePe said the solution is aimed at creating "full payment interoperability" between feature phone and smartphone users in India.
PhonePe highlighted the scope of the UPI solution, citing industry data that estimated 240 million feature phone users in 2024. Additionally, the company said it expects 150 million feature phone shipments in the next five years. This user segment has been underserved by the digital financial industry and the broader startup ecosystem, said Sameer Nigam, co-founder and CEO of PhonePe.
