HMD Brings Modern Smartphone Features to Feature Phones with AI, Video Calling, and Digital Wallet

HMD is bringing AI, video calling and a digital wallet to its feature phones

At MWC 2026, HMD announced plans to bridge the digital divide by bringing modern smartphone capabilities to its feature phone lineup. The company aims to expand digital access for under-connected users worldwide through a suite of services including a digital wallet, AI assistant, and video calling capabilities launching throughout 2026.

The digital wallet service represents HMD's most ambitious feature, designed to provide secure financial transactions for users in emerging markets. The wallet will enable receiving, storing, and cashing out funds through local payment systems. HMD is partnering with fintech firm Kivi3 and blockchain company Polygon Labs to develop the service, which debuts in India in the first half of 2026 before expanding to other markets. The company emphasizes device-level security with PIN protection to ensure user funds remain safe.

AI integration marks another significant step for HMD's feature phones. The company has partnered with India's Sarvam AI to develop a dedicated voice assistant that allows users to perform basic tasks through natural language commands. Users can make calls, set alarms, activate the phone's torch, and engage in simple AI chat interactions. This voice-first approach is particularly valuable for feature phone users who may have limited literacy or prefer spoken interaction over text input.

HMD is also piloting an AI companion specifically designed for elderly users, developed in collaboration with InTouch. This service provides companionship and assistance tailored to older adults' needs, with trial testing beginning in Europe before a global rollout. The companion aims to address social isolation while offering practical help with daily tasks.

Video calling arrives through HMD's new Xpress Chat app, which adds modern messaging capabilities to feature phones. The app supports video conferencing via front-facing cameras, voice messaging, group chats, and photo sharing. This represents a significant upgrade from traditional SMS-based feature phone communication, potentially transforming how users in emerging markets connect with family and friends.

These features address a critical market gap. While smartphone adoption continues to grow globally, hundreds of millions of users still rely on basic feature phones due to cost, durability, or simplicity preferences. HMD's approach brings essential digital services to this user base without requiring expensive smartphones or data plans.

The timing aligns with broader industry trends toward AI democratization and financial inclusion. By partnering with specialized companies like Sarvam AI for voice technology and Polygon Labs for blockchain infrastructure, HMD leverages expertise while maintaining its focus on hardware design and distribution.

Market reception remains to be seen, particularly given HMD's modest market share in the competitive mobile space. However, the company's strategy of targeting under-served populations with practical, affordable technology could find traction in regions where basic digital services remain out of reach for many users.

These features will roll out incrementally throughout 2026, with India serving as the initial launch market for most services. The approach allows HMD to test and refine the technology in a large, diverse market before expanding to other regions.

For users in developed markets, these announcements may seem incremental. But for the billions of people who rely on feature phones as their primary computing device, HMD's modernization efforts could provide meaningful access to digital services that many take for granted.

The strategy reflects a growing recognition that the next wave of digital inclusion won't come from pushing more expensive smartphones into emerging markets, but from making existing technology more capable and relevant to users' needs.