PhonePe Launches UPI Payments for Feature Phones: Now Send Money Without Internet

New Delhi: In a groundbreaking move to expand digital financial inclusion across India, fintech major PhonePe has launched non-internet UPI payment services for feature phone users. The initiative, made possible by PhonePe’s recent acquisition of GSPay, allows users of basic mobile phones to send and receive money through SMS-based transactions, marking a major step forward in bridging the digital divide.

Empowering Feature Phone Users with UPI Access

While smartphones have brought digital payments to millions, there are still crores of Indians relying on feature phones—many in rural or remote regions with limited or no internet access. Until now, these users were largely left out of the UPI ecosystem. PhonePe’s new service is set to empower non-smartphone users by enabling secure digital payments without internet.

With this advancement, users can perform money transfers, mobile recharges, and even QR code-based offline payments simply via SMS. The move is expected to significantly boost the reach of Digital India by bringing essential banking services to underbanked and underserved regions.

What is GSPay and How Does It Work?

GSPay is an app developed by conversational messaging platform Gupshup in 2023, built on the UPI 123PAY framework. It enables UPI transactions over SMS, making it ideal for feature phone users. Now under PhonePe’s ownership, GSPay will be further enhanced, with plans underway to launch a dedicated feature phone app powered by the same technology.

PhonePe’s feature phone users will soon be able to access services like peer-to-peer money transfers and offline QR payments—functionalities previously restricted to smartphones.

UPI Without Internet: Dial *99# to Get Started

PhonePe also encourages users to utilize the *existing 99# service, an official UPI initiative by NPCI. Here’s how it works:

1. Dial *99# from your feature phone

2. Select your bank from the options

3. Enter the last six digits of your debit card

4. Set your UPI PIN

5. Start transferring money—no internet required

This makes digital banking universally accessible, eliminating dependency on internet connectivity or expensive smartphones.

A Boost for Rural and Semi-Urban India

This move is expected to benefit millions of rural users, small shopkeepers, farmers, and laborers, enabling them to participate in the formal digital economy without needing new technology or additional expenses.

With digital transactions becoming safer and more widespread, PhonePe’s initiative is a major push toward cashless India, reducing reliance on physical currency and increasing transparency in small-scale trade.

What’s Next for PhonePe?

According to company sources, PhonePe will be launching its dedicated UPI feature phone app within the next three months, built entirely on UPI 123PAY standards. The app will include key functionalities like bill payments, mobile recharges, merchant payments, and more—all without internet.

This marks the beginning of a wider expansion plan aimed at making UPI services accessible to every mobile phone user in India, regardless of device type.

Conclusion

PhonePe’s SMS-based UPI rollout for feature phones could revolutionize financial access for millions. By combining simplicity with secure technology, the company is making digital payments more inclusive and bridging one of the biggest gaps in India’s digital journey.