By buld_online 
PhonePe, a leading fintech firm, has announced the introduction of UPI-based payments for feature phones by acquiring the GSPay technology stack from Gupshup. This strategic move aims to cater to the significant segment of Indian consumers who still rely on feature phones. With close to 24 crore feature phone users in 2024, and an additional 15 crore phones expected in the next five years, this development seeks to bridge the digital divide and enhance financial inclusion.
The GSPay acquisition will be integrated with PhonePe’s existing services, leveraging the UPI 123PAY platform developed by the National Payments Corporation of India (NPCI) for feature phones. “PhonePe said it will customise and extend the recently acquired GSPay IP and launch its own feature-phone based UPI payment mobile app on new feature phones in India, over the next few quarters,” highlighting their commitment to expanding functionality and user accessibility.
PhonePe’s focus on feature phones aligns with their broader strategy to ensure full payment interoperability between different types of mobile devices. Sameer Nigam, cofounder and chief executive of PhonePe, stated, “This (feature phones) segment of users has been historically underserved by the digital financial industry and the broader startup ecosystem. We hope we can enable crores of these feature phone customers to participate in India’s burgeoning digital payments market.”
UPI circle
PhonePe launched a new feature called UPI Circle on April 15, 2025, allowing users to send money on behalf of family members, friends, or trusted individuals—even if those individuals don’t have their own UPI-linked bank account.
In essence, UPI Circle enables users to form a group or “circle” where one person, the primary user, manages payments for others. This is particularly useful in scenarios like parents managing their children’s expenses, adults assisting elderly family members, or delegating household payments to a trusted aide.
Developed by the National Payments Corporation of India (NPCI), UPI Circle allows a primary account holder to authorize a secondary user to initiate payments from their UPI account, within defined transaction limits.
Initially available only on the BHIM app, the UPI Circle feature has now been expanded by NPCI to support interoperability across major UPI platforms such as PhonePe and Google Pay. This cross-platform functionality means users can now link different apps for delegated payments. For example, someone using PhonePe as the primary user can now authorize a secondary user on BHIM to make transactions on their behalf—making UPI Circle a flexible, inclusive tool for shared financial responsibilities within families or close-knit groups.
Financially, PhonePe reported an adjusted net profit of Rs 197 crore in the last financial year, excluding employee stock ownership plan (ESOP) costs. This indicates a positive turn in their core operations, alongside a 74% increase in operating revenue to Rs 5,064 crore in FY24, marking a significant improvement in financial health.
In addition to technological advancements, PhonePe is preparing for a potential initial public offering (IPO) and aims to list on Indian exchanges. This follows their 2022 decision to redomicile from Singapore to India, which involved paying nearly Rs 8,000 crore in taxes. The board of directors includes prominent figures such as Manish Sabharwal and Zarin Daruwala, who bring extensive experience and strategic guidance.