HMD Global is adding AI, video calling and a built-in digital wallet to its next generation of feature phones, as the Finnish manufacturer doubles down on services to reach users who remain under-connected.

The announcement was made at Mobile World Congress in Barcelona, where the company outlined a push to turn basic handsets into “smart feature phones” capable of handling modern digital tasks without the complexity or cost of a full smartphone.

At the centre of the update is a new digital wallet designed primarily for remittances. The wallet will allow users to receive money, store funds directly on their device and cash out through local payment systems.

HMD says users will also be able to transfer funds to services such as India’s UPI payment network for everyday purchases.

The service will debut in India in the first half of 2026 before expanding to other markets later in the year. It is being developed in partnership with fintech provider Kivi3 and blockchain infrastructure firm Polygon Labs, with device-level security and PIN protection built in.

HMD is also introducing video calling to feature phones through a new lightweight messaging platform called Xpress Chat. The app supports video calls via the phone’s front-facing camera, along with voice messages, group chats and photo sharing. Video calls will work between compatible feature phones and smartphones running the same app.

AI is another major addition. HMD is partnering with India’s Sarvam AI to develop a voice-based assistant designed specifically for feature phones. The assistant will handle basic tasks such as making calls, setting alarms, turning on the torch and answering simple questions without navigating complex menus.

The company is also piloting an AI companion for older users in partnership with InTouch.

The service is designed to speak slowly, remember personal context and provide conversation aimed at reducing loneliness among seniors. Trials are expected to begin in Europe before a broader rollout.

The move reflects HMD’s broader strategy as it continues to struggle in the competitive smartphone market. In recent months the company has expanded into accessories and hybrid devices while experimenting with new feature phone concepts aimed at first-time internet users.