PhonePe - Payment Methods Encyclopedia - PayU Global (2024)

With a growing middle class and the world’s second-largest population, India is now the eighth-largest global market for e-commerce. Total revenues equaled some $63 billion in 2021.

Amazingly, just over half of India’s population is online – demonstrating how much more room there is for further growth. Even now, with over 500 million online shoppers, India is already the world’s second largest e-commerce country by number of consumers.

Merchants seeking to sell to Indian consumers, however, must be prepared to significantly adapt their product offering and user experience to reflect the local landscape. India is rich with a variety of homegrown digital products and services, including many popular local payment methods that don’t exist elsewhere. In a country where just 4% of consumers have access to a credit card, alternative payment methods are a particularly important part of the payment landscape.

One of the most popular leaders in this field is PhonePe, a digital wallet payment method used by consumers to pay for a wide variety of online transactions. Keep reading to learn more about PhonePe – and how to integrate it into your e-commerce store.

What is PhonePe?

PhonePe is a digital wallet payment method used by consumers to pay for mobile recharges, e-commerce orders, utility bill payments, travel, and more. Customers can use it to recharge prepaid and postpaid mobile phones, pay bills online, and even book movie tickets.

The PhonePe mobile payment platform allows users to create a UPI ID by feeding their bank account details into the app, connecting to India’s flagship Unified Payments Interface.

Customers can download PhonePe on both Android and Apple phones. This safe and secure application caters to all of their banking needs under one roof. There is no need to go through the cumbersome process of registering a beneficiary, or entering bank account details such as account number or IFSC code – all that is required is a Virtual Payment Address (VPA).

With over 350 million used, PhonePe is trusted by a vast swath of India’s e-commerce population, making it an important payment method for any merchant doing business in India.

How does PhonePe work?

To use the PhonePe Wallet to pay bills and purchase goods, customers need to have money in their wallets. To add it, they first need to sign into their PhonePe account, go to their wallet, and enter the amount that they want to add to the wallet. The top-up wallet feature will be enabled as soon as they have added a certain amount.

When purchasing a product online, shoppers can select PhonePe as the payment method and use the funds they added to their wallet to pay for their order.

Merchants will receive funds immediately and can start preparing the shipment right away.

Why do merchants and consumers use PhonePe?

The PhonePe wallet provides multiple benefits to customers, making financial transactions fast and easy. Users can add multiple bank accounts with their PhonePe accounts and manage all of the accounts within the PhonePe app. Users are rewarded with a scratch card after each transaction they make.

For merchants, PhonePe is a must-have when attempting to do business in India. With over 350 million customers, more people use PhonePe than live in most countries in the world. As India’s e-commerce landscape evolves, it continues to be one of the most popular payment methods in the market.

How can merchants start accepting PhonePe?

The easiest way to integrate the PhonePe wallet is through a payment gateway that includes PhonePe as one of the available payment methods that merchants can offer to customers in India. PayU is deeply rooted in the Indian market and offers PhonePe as well as a variety of other local and alternative payment methods to help merchants reach Indian customers.

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