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 transfers, offline QR payments and money receipts. This service will be launched in a few quarters. The company informed that it has acquired the intellectual property (IP) of Gupshup’s proprietary GSPay technology stack.
New UPI feature: PhonePe announced that it is preparing to launch a Unified Payments Interface (UPI) solution for new feature phone users in India. The digital payments and financial services company said that its upcoming payment solution will be based on NPCI’s UPI 123Pay technology. The service will be built on the conversational engagement platform Gupshup’s GSPay tech stack and the company plans to offer basic UPI features support on feature phones. However, the service said that it may take a few quarters to launch UPI service in the country.
PhonePe’s UPI solution for feature phones
In a press release, the company announced that it has purchased the intellectual property (IP) of Gupshup’s proprietary GSPay technology stack. PhonePe will now customize this platform and build its 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 has been built on the UPI 123Pay service of the National Payments Corporation of India (NPCI), which was launched by the then RBI Governor Shaktikanta Das in 2022. Now the company will extend the technology stack of GSPay to 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, app-based service, missed call-based approach and 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.
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