Newly-launched PhonePe UPI 123Pay service will empower rural merchants, enable payments without internet: CEO Sameer Nigam

The latest service, which was launched on Monday, enables users to make digital payments through feature phones without internet connection.

In an interview with ANI, Sameer Nigam said the newly launched PhonePe feature phone app runs on the UPI 123 protocol. "This is something that NPCI introduced specifically for feature phones because these phones are not internet- or data-enabled. However, they all have SMS capability... It is designed for feature phones of all kinds."

Nigam said PhonePe drew inspiration from kirana stores, noting that the company has digitised around 5 crore merchants over the past decade, including a large number of rural merchants. Highlighting that "many of these merchants do not have smartphones," Nigam said the PhonePe feature phone app will enable them to receive payments on their personal mobile numbers or shop numbers linked to their business accounts.

The app supports peer-to-peer payments for all feature phones, while users with camera-enabled devices can also scan QR codes.

"Users can send money to a mobile number, send money to a VPA, or scan a QR code and make payments if their phone has a camera. You can also check their balance and perform several other functions, all through the SMS gateway..." he said, adding "PhonePe will bear the SMS charges,"for interaction within its server.

However, users will have to pay SMS charges for certain processes, such as bank account linking, which require a verification SMS, similar to smartphone-based payment apps.

For transaction limit, he said, "As far as the transaction limit is concerned, since this is a new technology and we are the first to introduce it, the Reserve Bank or NPCI has set a limit of Rs 5,000 per transaction and Rs 10,000 per day for now." (ANI)