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PhonePe, a leading fintech company in the digital payment sector, has launched a revolutionary service for more than 20 crore feature phone (basic keypad phone) users of India. The company has officially launched 'PhonePe UPI 123Pay', through which users will be able to conduct secure UPI transactions without any internet connection or data pack.

PhonePe becomes the first major Third-Party Application Provider (TPAP) in India to launch in-built UPI service on such a large scale for feature phones. The move will boost financial inclusion, especially in rural and semi-urban areas, which still lack smartphones and strong internet connectivity.

This new service of PhonePe is a special SMS-based Architecture And works on the company's proprietary technology stack.

• No internet needed: This service does not require any Wi-Fi or mobile data to send money or make payments to merchants.

• Active even in weak 2G signal: Even if your phone only has access to a basic 2G network, this system completes bank-to-bank transfers with secure encryption.

• Partnership with Handset Manufacturers: This service will be available as a pre-installed app in select new feature phones of Nokia, HMD, Lava International and Itel Mobile.

Feature phone users will be able to access several banking and payment facilities through their PhonePe app:

• Peer-to-Peer (P2P) Transfer: You can send money directly to any person by entering mobile number or UPI ID.

• Payment at Shops (P2M): Payment can be made on the shopkeeper's UPI ID or number.

• QR scanning in basic phones with cameras: In feature phones which have rear camera, users will be able to make payment directly by scanning the QR code installed at the shop.

• Balance check and transaction history: Users will be able to check their bank account balance at any time and view details of past transactions.

• Upcoming Features: The company has confirmed that electricity bill payments, mobile recharge and Aadhaar-based UPI onboarding will also be added in the upcoming updates.

To help rural and elderly users who are using digital payments for the first time, PhonePe has launched a AI-powered voice helpline (Voice-First AI Assistant) Also presented.

Instead of the complex menus of traditional IVR, this voice assistant will explain the registration and payment process step-by-step in a conversational manner with the users. This voice service is made available in 12 major Indian languages ​​including English and Hindi.

No smartphone is required to activate this service:

• Step 1 (Registration): Open the pre-installed 'PhonePe' app on the feature phone and accept the terms and conditions.

• Step 2 (Bank Selection): Select your bank from the list visible on the screen.

• Step 3 (Debit Card Details): Enter the last 6 digits and expiry date of your ATM/Debit card.

• Step 4 (Set UPI PIN): Create your 4 or 6 digit secret UPI PIN. Once the PIN is set, your offline UPI ID will become active.

• To send money: Go to the app, select 'Pay to Mobile Number' or 'Scan & Pay', enter the amount, enter your UPI PIN and press 'OK'; Payment confirmation will appear on the screen within seconds.

With approximately 71.5 crore registered users in the country and more than 5 crore merchant network, this new step of PhonePe will directly connect the next 30 crore non-smartphone users of the country with the digital economy.