At MWC 2026 in Barcelona, Human Mobile Devices (HMD) outlined a strategy to bring video calling, artificial intelligence and digital payments to a new generation of smart feature phones. The company is positioning these devices as tools for inclusion, aimed at users who remain under connected, as well as for customers in mature markets who prefer simpler hardware.

The announcement centers on three additions that are typically associated with smartphones: a built in digital wallet, cross platform video calling and an AI assistant. HMD says the aim is to extend essential digital services to what it describes as the next billion users, while maintaining the affordability and familiarity of feature phones.

Digital wallet focused on remittance

The most significant development is a built in digital wallet designed for secure digital payments. HMD says this is the first time such functionality has been integrated directly into a feature phone at device level.

The wallet will allow users to receive money from family and friends, store funds on the device and cash out using local payment systems. In India, users will also be able to transfer funds to a UPI account, enabling payments for goods and services through existing digital payment infrastructure. Security measures include device level protections, PIN access and integrations with regulated financial partners.

The service is being developed with Kivi3, which provides compliant digital transfer technology for feature phones, and Polygon Labs, which builds blockchain based payment infrastructure. HMD says the partnership is intended to enable near instant international transfers, including payments from family members working abroad.

India will be the first launch market in the first half of 2026, reflecting its status as the world’s largest remittance market and a leader in digital payments. Feature phones remain widely used in the country, making it a practical test bed for the service. HMD plans a phased international rollout later in the year.

The company recently announced a partnership with Sarvam AI to support locally relevant AI services in India, further underlining the market’s importance in its roadmap.

HMD Feature Phone Upgrade Strategy MWC 2026 | TheEffect.NetVideo calling across feature phones and smartphones

HMD is also introducing video calling to its feature phone range. Devices will include a front facing camera and support a lightweight chat application called Xpress Chat. The app will enable video calls, voice messages, photo sharing and group chats.

HMD says the experience will work between compatible feature phones and smartphones, provided both devices have the Xpress Chat app installed. The approach is intended to reduce fragmentation between device categories and allow feature phone users to communicate more easily with contacts using smartphones.

Video calling has traditionally been limited on feature phones due to hardware and network constraints. By integrating a camera and an optimised application, HMD is attempting to extend this capability without shifting users to full smartphone platforms.

AI assistant designed for practical use

Artificial intelligence is the third pillar of the update. HMD will introduce an AI assistant to its feature phone portfolio, accessible through simple voice commands.

The assistant is designed to handle everyday tasks such as placing calls, setting alarms, turning on the torch and answering basic questions. The company says the focus is on reducing the number of menu layers and button presses required to perform common actions.

For some households, particularly in emerging markets, a feature phone may be the only connected device. HMD argues that providing AI functionality on these devices helps prevent further digital divide as services increasingly assume access to smartphones or smart speakers.

The company says its approach to AI on feature phones prioritises practical use cases over more advanced generative features, given hardware constraints and cost considerations.

Support for older adults

Alongside services aimed at under connected users, HMD is also targeting older adults in Europe and other mature markets. The company is piloting an AI companionship service in partnership with inTouch, a specialist in reducing isolation among seniors.

The service is accessible through a single button press and is designed to provide conversation and support tailored to older users. HMD says the AI is trained to speak slowly, retain personal context and engage in ongoing dialogue rather than short command responses.

Vassili le Moigne, founder and chief executive of inTouch, said the partnership aims to deliver AI companionship through a familiar interface. Jean François Baril, chairman and chief executive of Human Mobile Devices, said the company’s goal is to make technology more accessible and meaningful in everyday life, combining AI, communication and financial services on affordable hardware.

The pilot will assess how AI driven companionship can support independence and wellbeing using simple devices. A broader European rollout is expected if the trial proves successful.

John Reilly

John is Founder and Editor-in-Chief of TheEffect.Net. His favourite gaming series is Uncharted and his favourite film is Interstellar. He is also known to quote 'Father Ted' and Keith Lemon more than is normal. John@theeffect.net