PhonePe to Launch UPI Payments for Feature Phones, Challenging Paytm and Google Pay
PhonePe Aims to Connect Millions with UPI for Feature Phones
Bangalore-based fintech giant PhonePe is making a bold move to bridge the digital divide! They’ve just announced the purchase of GSPay, a clever technology from Gupshup that makes UPI payments possible on good old feature phones. Think of GSPay as a special app built to work with NPCI’s UPI payment system designed just for these simpler phones (it’s called UPI 123PAY).
What’s the Big Deal?
PhonePe isn’t just buying tech; they’re buying access to a whole new segment of the Indian population. They plan to take the GSPay technology and give it the PhonePe treatment – customizing and expanding it to create their own UPI payment app for feature phones. We can expect to see this app rolling out on new feature phones across India in the coming quarters.
Bringing Everyone into the Digital Fold
The goal is simple: to bring all the essential UPI features to feature phone users. Imagine being able to send money to friends and family (P2P transfers), pay at local shops using offline QR codes, and receive money from anyone with a UPI account, all from your trusty feature phone. PhonePe is aiming for complete compatibility between feature phones and smartphones, opening up the world of digital payments to millions of Indians who are still using feature phones.
A Huge Untapped Market
Sameer Nigam, Co-Founder and CEO of PhonePe, is clearly excited about the possibilities. He notes that feature phone users have been largely overlooked by the digital financial industry. By acquiring the GSPay technology, PhonePe hopes to empower millions of these customers to participate in India’s rapidly growing digital payments landscape.
Numbers Don’t Lie
The potential here is massive. Current industry data indicates that India has around 240 million feature phone users in 2024. And that’s not all – another 150 million feature phone shipments are expected over the next five years. This move by PhonePe could truly revolutionize how a significant portion of the Indian population manages their finances.