PhonePe to Enable UPI Payments on Feature Phones, Acquires GSPay Technology

By Siddhi Jain | Jun 7, 2025, 13:57 IST

In a significant move to expand digital payments in India, PhonePe has acquired GSPay’s technology to bring UPI payments to feature phones. This could empower millions of users without smartphones to access digital financial services.

📱 Why This Matters: Millions in India Still Use Feature Phones

Despite the rise of smartphones, millions of Indians still rely on feature phones with basic keypads. These users often remain excluded from digital payment systems due to limited or no internet access. Recognizing this gap, PhonePe has acquired GSPay, a technology platform built specifically for UPI-based transactions on non-smartphone devices.

🔧 What is GSPay and UPI 123PAY?

GSPay is built on the UPI 123PAY platform, developed by the National Payments Corporation of India (NPCI).
UPI 123PAY allows users with low-speed internet or no access to apps to perform digital transactions using voice and keypad inputs.
With this acquisition, PhonePe plans to enhance the technology and soon launch its own UPI-based app for feature phone users.

✨ What Features Will Be Available on Feature Phones?

The upcoming UPI service from PhonePe for feature phones will include:

Peer-to-peer money transfers directly between users.
Offline QR code payments – users will be able to scan and pay without internet.
Send/receive money using mobile numbers or a custom QR code.

These features aim to offer a seamless digital payment experience even without a smartphone or high-speed internet.

🎯 PhonePe’s Vision for Financial Inclusion

PhonePe’s broader mission is to make UPI accessible across all types of mobile devices, not just smartphones. This step is expected to:

Expand the digital payment ecosystem to rural and remote areas.
Promote financial inclusion among users traditionally left out of the digital economy.

As of 2024, India had an estimated 240 million feature phone users. In the next five years, another 150 million feature phones are expected to be in use – presenting a massive opportunity for fintech companies like PhonePe.

📊 PhonePe’s Reach and Growth Potential

PhonePe currently serves over 600 million users across India.
It is partnered with more than 4 million merchants.
This feature phone initiative is expected to boost its user base further and simplify digital payments for underserved populations.

✅ Conclusion

By acquiring GSPay and tapping into UPI 123PAY technology, PhonePe is taking a major step toward bridging the digital divide in India. Soon, even users with basic phones will be able to make secure, instant UPI transactions — a move that could transform financial access for millions.