HMD Global is doubling down on services to reach under-connected users by adding AI, video calling and a built-in digital wallet to its next-generation feature phone.
The announcement was made at Mobile World Congress in Barcelona, where the company outlined its efforts to transform basic mobile phones into “smart feature phones” that can handle modern digital tasks without the complexity and cost of a full-fledged smartphone.
At the heart of the update is a new digital wallet designed primarily for remittances. This wallet allows users to receive money, store funds directly on their device, and withdraw cash through local payment systems.
HMD said users can also transfer funds to services such as India’s UPI payment network for everyday purchases.
The service is expected to debut in India in the first half of 2026, followed by expansion to other markets in the second half of the year. It was developed in partnership with fintech provider Kivi3 and blockchain infrastructure company Polygon Labs and includes device-level security and PIN protection.
HMD is also introducing video calling to feature phones through a new lightweight messaging platform called Xpress Chat. The app supports video calling through the phone’s front camera, as well as voice messages, group chats, and photo sharing. Video calling works between compatible feature phones and smartphones running the same app.
AI is also a great addition. HMD has partnered with India’s Sarvam AI to develop a voice-based assistant designed specifically for feature phones. The Assistant handles basic tasks like making calls, setting alarms, turning on the flashlight, and answering simple questions without having to navigate complicated menus.
The company is also partnering with InTouch to pilot an AI companion for older users.
The service is designed to speak slowly, remember personal situations, and provide conversation, with the aim of reducing feelings of loneliness in older adults. Trials are expected to begin in Europe before widespread rollout.
The move reflects HMD’s broader strategy as it continues to struggle in the highly competitive smartphone market. The company has been expanding into accessories and hybrid devices in recent months, experimenting with new feature phone concepts aimed at first-time Internet users.
