PhonePe Acquires GSPay IP from GupShup for UPI on Feature Phones

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digital payments leader PhonePe has acquired the intellectual property (IP) of GSPay, a UPI-based payment solution developed by conversational engagement platform Gupshup. The acquisition is aimed at enabling seamless UPI payments on feature phones, addressing a vast segment of Indian users traditionally underserved by the fintech revolution.

GSPay is a mobile application built on the foundation of NPCI’s UPI 123PAY, a platform designed specifically to support UPI transactions on non-smartphone devices. PhonePe plans to customize and enhance the GSPay technology stack and roll out its own UPI-enabled mobile app tailored for new feature phone models across India in the coming quarters.

According to PhonePe, the app will support essential UPI services such as peer-to-peer (P2P) money transfers, offline QR code payments, and the ability to receive funds from any UPI user using mobile numbers or self-generated UPI QRs.

“This 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,” said Sameer Nigam, Co-founder and CEO of PhonePe.

The initiative is designed to bridge the gap between feature phone and smartphone users, ensuring full payment interoperability across devices. This aligns with PhonePe’s broader vision to democratize access to financial technology and drive digital inclusion in Bharat.

As per recent industry estimates, India had around 24 crore (240 million) feature phone users in 2024, with an additional 15 crore units projected to ship over the next five years. Tapping into this vast user base could significantly increase UPI adoption across rural and semi-urban areas.

Founded in 2016, PhonePe has grown into one of India’s most prominent fintech players with over 600 million registered users and a merchant network spanning over 4 crore outlets. The platform handles 33 crore+ transactions daily, with an annualized total payment value (TPV) exceeding ₹150 lakh crore.

Apart from its digital payments business, PhonePe has diversified into financial product distribution—including insurance, lending, and investments—as well as consumer technology, with offerings such as Pincode and Indus AppStore.

This latest acquisition strengthens PhonePe’s efforts to remain at the forefront of India’s evolving fintech landscape, furthering its mission to make digital payments accessible to every Indian, regardless of device or geography.

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