Indian smartphone maker Lava has integrated PhonePe digital payments into its feature phone lineup, enabling UPI transactions without an internet connection. The service runs on NPCI’s UPI 123PAY technology and uses telecom networks instead of mobile data. This brings cashless payments to millions of feature phone users who do not own a smartphone or lack reliable internet access. The announcement marks a significant step in bridging India’s digital divide.
Two Budget Phones Lead the Rollout
The PhonePe feature is initially available on two entry-level models – the Lava A7 Torch (2026) and the Lava A2 Smart. Both phones cost under Rs 2,000 and target price-sensitive buyers in semi-urban and rural markets. Lava plans to extend the feature to its other feature phone models in the coming months after gathering initial user feedback.
No Internet Required for Transactions
Users do not need an active mobile data connection to make UPI payments. The system relies on telecom network and SMS-based connectivity instead of smartphone data or Wi-Fi. This makes it ideal for users in areas with patchy internet coverage or those who rely on basic keypad phones for daily communication.
Full UPI Features on Keypad Phones
Feature phone users can link their bank accounts, set a UPI PIN, and send money to any UPI handle instantly. They can also check account balances and make payments to merchants by using the keypad interface. The experience closely mirrors what smartphone users get with regular UPI apps but without needing a touchscreen or data plan.
Boosting Digital Inclusion in India
Millions of Indians still use feature phones, especially in rural regions with limited broadband access. This integration bridges the digital payment gap by offering a familiar keypad-based payment method. Lava’s move aligns with the government’s push for broader financial inclusion through the NPCI-led UPI ecosystem that now processes billions of transactions monthly.
