PhonePe's Bold Move to Revolutionize Feature Phone Payments

In a strategic move, PhonePe announced on Friday its acquisition of GSPay's proprietary technology stack from Gupshup. The acquisition is aimed at enabling UPI-based payments on new feature phones, a sector that remains largely untapped in the digital space.

PhonePe revealed plans to customize the technology stack for launching their own UPI payment app specifically designed for India's feature phone market in the coming quarters. This new app will provide essential UPI Payment features including peer-to-peer transfers, offline QR payments, and the ability to receive money via mobile numbers.

According to industry research, India had 24 crore feature phone users in 2024, with projections suggesting an additional 15 crore shipments in the next five years. PhonePe CEO Sameer Nigam highlighted that this acquisition will significantly contribute to integrating millions of feature phone users into the digital payments framework.

(With inputs from agencies.)