Current Affairs - Finance - Discussion

PhonePe became the first major Third-Party Application Provider (TPAP) to launch UPI 123Pay on September 2, 2026. The service enables offline UPI payments for feature phone users, particularly in rural and semi-urban areas with limited internet connectivity. It uses an SMS-based architecture that allows transactions even in regions with weak 2G networks. Users can make peer-to-peer transfers, merchant payments, check account balances, and view transaction history. The service is also supported by a voice-first, AI-powered helpline in English and 12 Indian languages. UPI 123Pay was originally launched by RBI and NPCI in March 2022 for non-smartphone users.