India, Sept. 1 -- PhonePe has launched UPI 123Pay for feature phones, allowing users to make digital payments and transfer money without requiring an internet connection.

The service is aimed at India's more than 200 million feature-phone users and uses an SMS-based architecture to process UPI transactions. PhonePe said it is the first major third-party application provider (TPAP) to offer UPI payments on feature phones at this scale.

The service will initially be available on feature phones from Nokia, HMD, Lava International and Itel Mobile, part of Transsion Holdings. PhonePe said it plans to add more handset manufacturers in the coming months.

The rollout comes as UPI enters its second decade, with the focus increasingly shifting f...