PhonePe Business Model: How Does PhonePe Make Money?

PhonePe is an online payment platform that offers various services via the Internet in addition to creating, hosting, and managing your online transactions. Many businesses nowadays offer you the ability to conduct transactions online. One of these businesses is PhonePe. The National Payments Corporation of India has advanced its technological capabilities and introduced UPI to enhance the convenience of transactions.


Understanding PhonePe

2015 saw the founding of PhonePe, a well-known digital payment app in India, by Rahul Chari, Sameer Nigam, and Burzin Engineer. The UPI (Unified Payments Interface) transactions served as the foundation for the application. The company’s main office is in Bangalore, India.

PhonePe is a popular software available in eleven Indian languages. Numerous services are available, including tax savings funds, data cards, utility payments, DTH, mobile recharge, and receiving and transferring money. Over 280 million people use PhonePe, and over 17 million merchandisers in over 500 Indian cities have built payment options. PhonePe is permitted to conduct financial transactions and use a payment system under an authorized name by the Reserve Bank of India.

PhonePe Company Details

Company Name PhonePe
Origin Country India
Founded 2015
Founders Sameer Nigam, Rahul Chari
CEO Sameer Nigam
Headquarters Bangalore, Karnataka, India
Industry Fintech, Payments, Digital Wallet
Key Offerings Digital Payments, UPI Transactions, Recharge, Bill Payments, Investments
Number of Users Over 300 million (as of last update)
Official Website

Revenue Sources-Business Model

In addition to facilitating bank-to-bank funds transfers, PhonePe offers many other unique features, like the ability to buy groceries, insurance, food, and much more. The things sold on this app are supplied more efficiently, thanks to PhonePe. PhonePe is an application with several uses. In addition, it offers the ability to pay electricity bills, other home obligations, and cell recharges.

PhonePe levies a commission on consumer payments to online and physical retailers. Nevertheless, since UPI transactions depend on IMPS, banks are not charged more.

PhonePe just released its point-of-sale system, which can be found in practically all stores that accept PhonePe payments. The payment is made incredibly easy and handy by the POS machine. The PhonePe POS machine is the least expensive point-of-sale system available globally, and it runs on Bluetooth technology.

Revenue Sources of PhonePe

  • Commission on Transactions: PhonePe receives a modest commission on all transactions performed through the site, including purchases, bill payments, and money transfers. For instance, PhonePe might get paid a commission of two to five percent on a transaction involving a user and Rs. 100. This is one of PhonePe’s main sources of income.
  • Promotions and Advertising: PhonePe generates income through the app’s display of advertisements and its promotion of different goods and services. Additionally, they provide in-app advertising, which allows companies to market their goods and services to consumers. As an illustration, a company can pay PhonePe to advertise its goods or services on the app; PhonePe gets paid for doing so.
  • Financial Services: Users of PhonePe can also access financial services like wealth management, loans, and insurance. Commissions plus service fees from these services are how they make money. For instance, the company gets paid by a user’s interest on a loan they obtain through PhonePe.
  • Partnerships: PhonePe also has partnerships with several companies and retailers to provide users with exclusive offers and discounts. Commissions or fees for these collaborations are how they make money. For instance, the business receives a commission if a user buys something from a merchant who has teamed up with PhonePe.
  • UPI Transactions: The National Payments Corporation of India (NPCI) established the UPI (Unified Payments Interface) real-time payment system, via which PhonePe receives revenue from transactions. A tiny portion of each transaction’s value is paid to PhonePe as revenue.
  • E-Commerce: PhonePe also offers an online shopping platform where customers can buy goods from various retailers. PhonePe earns commission from transactions completed using the platform.


Commissions, partnerships, financial services, advertising, and UPI transactions are ways PhonePe generates income. Its large user base and variety of offerings contribute to income generation. The company has grown into one of the top digital payment systems in India because of its partnerships with merchants and businesses and its focus on offering a smooth and safe payment experience.