PhonePe has taken a major step toward making digital payments accessible for feature phone users.
The company has announced that it has acquired the intellectual property (IP) of Gupshup’s UPI-based technology, GSPay.
With this deal, PhonePe will now customize GSPay and develop its own UPI app designed specifically for feature phones in India.
The company plans to launch this new platform in the coming quarters and aims to bring millions of feature phone users into the digital payments ecosystem.
App Will Work on NPCI’s UPI 123PAY Platform
In a press release, PhonePe stated that its new app will be built on NPCI’s UPI 123PAY platform, which is created for people who use feature phones instead of smartphones. With this app, users will be able to access basic UPI services like:
Person-to-person (P2P) money transfers
Offline QR code payments
Receiving money via mobile number or self-QR code
PhonePe CEO’s Statement on the Acquisition
Goal: Full UPI Interoperability for All Users
PhonePe said that it aims to offer full UPI interoperability, meaning feature phone users will be able to use UPI in the same way as smartphone users.
The goal is to remove the gap between the two and help include millions more in India’s digital payment system, promoting wider financial inclusion.
Why This Matters
PhonePe also shared industry data, saying that as of 2024, nearly 24 crore Indians still use feature phones, and over 15 crore new feature phones are expected to be shipped in the next five years.
This makes the feature phone segment a huge opportunity area for digital payment services.
