Lava and itel have separately partnered with PhonePe to bring UPI payments to feature phones, allowing users to make digital transactions without requiring a smartphone or an internet connection. Both initiatives use PhonePe UPI 123Pay, which is designed to enable UPI services through feature phones and SMS-based connectivity.
Lava Brings PhonePe to A7 Torch and A2 Smart
Lava will introduce the PhonePe application on its A7 Torch (2026) and A2 Smart feature phones, both positioned in the sub-Rs 2,000 segment. The company says the PhonePe application will subsequently be integrated into more feature phones across its portfolio.
The integration is powered by NPCI's UPI 123PAY technology, allowing users to register their bank accounts, set up a UPI PIN, make payments and transfer money without a data connection. Users can also check their account balance and access supported UPI services directly from their feature phones.
Lava says the move is aimed at bridging the digital divide and expanding access to digital services across different consumer segments. The company highlighted India's large feature phone user base as a key reason behind bringing newer digital services to its feature phone portfolio.
itel Feature Phones Get Pre-Bundled PhonePe UPI 123Pay
itel, meanwhile, has partnered with PhonePe to offer PhonePe UPI 123Pay as a pre-installed application on selected feature phones. The service is targeted particularly at consumers in rural and semi-urban markets, where smartphone ownership and reliable internet connectivity can still be limited.
Compatible itel feature phone users will be able to make peer-to-peer money transfers using mobile numbers or UPI IDs, as well as merchant payments through UPI IDs and QR codes. They can also check their account balance and transaction history directly from their phones.
To activate the service, users need to open the PhonePe application, select their bank, enter the required debit card details and set their UPI PIN. Once registered, UPI transactions can be carried out directly through the feature phone.
PhonePe UPI 123Pay Targets Wider Financial Inclusion
The two partnerships expand PhonePe's UPI ecosystem beyond smartphones. While Lava is rolling out the service across its feature phone portfolio, starting with the A7 Torch (2026) and A2 Smart, itel will offer the service pre-installed on selected compatible devices.
PhonePe says bringing UPI to feature phones could help extend digital payments to consumers who do not use smartphones or have regular access to the internet. The company views the move as another step towards expanding financial inclusion and bringing more consumers into India's digital payments ecosystem.
Both companies are therefore taking a similar approach, using feature phones as an entry point to digital payments rather than requiring consumers to upgrade to smartphones first.
