How PhonePe Earns Money?

PhonePe is a digital payment application that streamlines and oversees your online transactions while also providing supplementary services through its internet-based platform.

In today’s landscape, several other companies offer features comparable to PhonePe. The National Payments Corporation of India (NPCI) has advanced its technology and introduced UPI, ensuring efficient transaction facilitation.

In the digital era, UPI companies lead the way. In the data-driven market, they frequently ascribe considerable value to themselves.

During Q3 2023, UPI observed over 117.6 billion transactions, totaling more than Rs. 182 lakh crore. Monthly UPI transactions surged by over 49% from January to December 2023.

In light of this context, let’s explore how PhonePe generates its revenue.

About PhonePe

PhonePe stands as a notable Indian digital platform established in 2015 by Sameer Nigam, Burzin Engineer, and Rahul Chari.

PhonePe’s core is rooted in UPI (Unified Payments Interface) transactions. The company is headquartered in Bangalore, India.

PhonePe is a digital application that provides services in 11 different Indian languages at no extra charge. Its offerings encompass mobile recharge, money transfers, DTH recharges, utility bill payments, tax-saving funds, data card recharges, and beyond.

PhonePe has secured a license from the Reserve Bank of India to provide money transfer services and operate as an authorized payment system.

PhonePe has garnered an extensive user base exceeding 280 million and has established payment systems for over 17 million merchants across nearly 500 cities in India.

PhonePe Business Model

In addition to enabling bank-to-bank money transfers, PhonePe provides a wide array of dynamic features, including insurance, food ordering, gold purchases, loans, and grocery shopping, among others. Moreover, it offers essential services such as mobile recharge, electricity bill payments, and other household bill payments.

PhonePe functions as a versatile super app, consolidating a diverse array of features into one platform. Within the application, users can access various products that come with modest discounts.

PhonePe applies a commission on payments made by customers to merchants, whether online or offline.

Because UPI transactions operate via IMPS, PhonePe does not impose any additional commission on banks.

PhonePe has recently unveiled its proprietary POS machine, now widely accessible across numerous stores, streamlining PhonePe payments. This POS (Point of Sale) machine markedly improves payment convenience and accessibility for merchants.

Utilizing Bluetooth technology, the PhonePe POS machine stands out as the most economical POS device globally.

How PhonePe earns money?

Below are multiple sources detailing how PhonePe generates revenue:

1. Mobile Recharge

We’re all aware that PhonePe provides hassle-free online mobile recharge services for both prepaid and postpaid connections.

Consequently, PhonePe generates revenue through commissions from telecom operators for each recharge transaction. Furthermore, it has recently implemented platform fees ranging from ₹1 to ₹2 per mobile recharge transaction above ₹50.

2. Bill Payment

When a bill payment is made through the PhonePe application for a specific company, PhonePe earns a commission from that company.

3. Gift Vouchers

PhonePe offers a wide range of gift vouchers for various applications like Oxigen Wallet, Airtel Money, Freecharge, and others. When you buy gift vouchers through PhonePe, you earn a commission on each sale.

4. Digital Gold

PhonePe facilitates the purchase of digital gold for users. When you buy digital gold via PhonePe, there may be a nominal additional charge compared to the actual pricing.

5. Mutual Fund

PhonePe has incorporated a distinctive feature into its app, offering mutual funds. When investors purchase any mutual fund scheme through the PhonePe application, the platform charges a commission based on a percentage on behalf of the respective company.

6. UPI (United Payment Interface)

PhonePe generally doesn’t profit from UPI transactions. Instead, it leverages user data analysis to innovate and create new products.

Revenue Model of PhonePe

PhonePe doesn’t have its own payments bank. There are no fees when you transfer money back to your account. Moreover, the platform provides various promotions and cashback incentives for transactions made through it.

A substantial portion of PhonePe’s revenue stems from recharges and bill payments. Moreover, PhonePe actively promotes various brands on its application through exclusive offers and vouchers.

PhonePe generates revenue by leveraging Yes Bank’s analytic database and tailoring products to users. Moreover, Flipkart utilizes the service to track purchases, facilitating improved advertising, offers, and notifications for users via PhonePe.

By steering users away from other payment apps, PhonePe amasses and preserves a substantial sum of money from Flipkart.


PhonePe stands apart from payment banks such as Paytm and Airtel Money. Operating as a fintech startup, it provides services that are independent of banking functions.

At present, PhonePe commands a 47% market share, guaranteeing safe and secure online transactions.

PhonePe offers a diverse range of services, facilitating payments and online transactions for various products through its application, website, or third-party merchant platforms, both online and offline. Moreover, PhonePe provides wallet services akin to those offered by Paytm and Amazon Pay.

PhonePe enjoys extensive adoption as a payment platform across India, celebrated for its outstanding services and enticing offers.

PhonePe offers superior payment features and appealing deals, all while employing traditional revenue generation methods.

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