UPI Without Internet: PhonePe to Power Feature Phones with GSPay
Digital payments giant PhonePe to roll out UPI services for feature phones built on GSPay and NPCI’s UPI 123Pay framework.
image for illustrative purpose
PhonePe has revealed plans to introduce Unified Payments Interface (UPI) services tailored for feature phone users in India, utilizing a framework built upon Gupshup's GSPay stack and NPCI’s UPI 123Pay system.
The upcoming service aims to bridge digital payment access for users without internet-enabled smartphones. According to the company, development is underway and commercial rollout may take a few quarters.
The digital payments firm has secured full rights to Gupshup’s GSPay infrastructure, a system originally launched in 2023 to facilitate SMS-driven payments. PhonePe will adapt this technology to deliver UPI transactions via low-connectivity modes, ensuring compatibility with NPCI’s UPI 123Pay standard, which was introduced in 2022 to cater to non-smartphone users.
GSPay’s system supports UPI functionality through four channels: IVR-based calls, basic apps, missed call triggers, and sound-based transactions. PhonePe’s version will incorporate these modes, enabling users to send and receive funds via mobile numbers or self-generated QR codes without requiring internet connectivity.
Feature phone owners will gain access to core UPI capabilities such as peer-to-peer transfers and offline QR payments. The company highlighted the goal of achieving seamless payment interaction between smartphones and feature phones.
PhonePe referenced market data indicating that over 240 million people in India currently use feature phones, with an estimated 150 million additional units expected to be sold over the next five years. This demographic, the company noted, has remained largely outside the digital finance ecosystem until now.
