PhonePe Introduces UPI Payments for Feature Phone Users Ahead of IPO

Fintech major PhonePe has announced the launch of UPI-based payments for feature phone users in India. This initiative follows the acquisition of the GSPay technology stack from conversational platform Gupshup. Built on top of NPCI’s UPI 123PAY framework, GSPay enables digital payments on non-smartphone devices — an underserved segment of the Indian population.

PhonePe plans to customise and extend the GSPay intellectual property to develop its own UPI mobile app for feature phones in the coming quarters. This strategic move is aimed at bringing digital transactions to a wider audience and promoting financial inclusion at scale.

Key UPI Features to Be Offered on Feature Phones

The upcoming PhonePe feature phone app will include core UPI functionalities such as:

• Peer-to-peer (P2P) transfers

• Offline QR code-based payments

• Receiving money via mobile numbers or self-generated QR codes

These features will ensure full interoperability between feature phones and smartphones, making digital payments accessible even to users without internet-enabled devices.

Bridging the Digital Divide

PhonePe’s CEO and co-founder, Sameer Nigam, emphasized the importance of serving feature phone users, stating,

“This segment of users has been historically underserved by the digital financial industry and the broader startup ecosystem. We hope we can enable crores of these feature phone customers to participate in India’s burgeoning digital payments market.”

This initiative aligns with the broader goal of enabling financial inclusion and tapping into Bharat’s unbanked and underbanked communities, particularly in rural and semi-urban India.

Large Feature Phone User Base in India

According to industry estimates, India had nearly 240 million (24 crore) feature phone users in 2024. Additionally, over 150 million (15 crore) new feature phone units are projected to be shipped in the next five years. This vast, digitally underserved market presents a major opportunity for PhonePe to extend its payments infrastructure and onboard millions of new users to UPI.

Recent Strategic Developments at PhonePe

As part of its growth trajectory, PhonePe is expanding its leadership team. The company recently appointed Zarin Daruwala, former CEO of Standard Chartered Bank India, to its board of directors. Daruwala brings extensive experience from her time at ICICI Bank, where she led the wholesale banking business and served on the boards of ICICI Lombard and ICICI Securities.

She now joins other high-profile board members, including:

• Sameer Nigam, PhonePe CEO

• John David Rainey, CFO of Walmart (PhonePe’s parent company)

• Tarun Bajaj, former Revenue Secretary of India

This leadership enhancement signals the company’s seriousness in scaling operations ahead of its IPO.

IPO Plans: PhonePe Converts to Public Entity

PhonePe has already begun preparing for its initial public offering (IPO) by transitioning from a private limited company to a public entity in April 2025. This conversion is part of a long-term strategy to list on Indian stock exchanges.

In a significant move in 2022, PhonePe redomiciled from Singapore to India, a shift that reportedly led to its investors paying approximately ₹8,000 crore in taxes to the Indian government. This patriotic financial move not only strengthened PhonePe’s domestic presence but also aligned it with the Make in India vision.

Conclusion: Expanding UPI for Every Indian

PhonePe’s decision to launch UPI payments on feature phones via the GSPay stack reinforces its commitment to financial inclusion and digital empowerment. With over 240 million potential users in its sights, and a strengthened leadership team preparing for a public listing, the fintech unicorn is poised for its next phase of massive growth.