How Does PhonePe Make Money?

How does phonepe make money

PhonePe you must have heard about this payment app at least a dozen times. The majority of you must also be using this app to make payments for your day-to-day life. 

To pay a merchant for the products you purchased or to pay a friend who is in need. To make recharges or pay off your bills these payment apps have made our life ten times easier than ever before. 

By making our life smooth and easy these apps have become a significant part of our life. 

However, has this thought ever slid in your head that how these payment apps make money? Do they charge us or any other entity? Are we being charged by PhonePe without our knowledge?

Phonepe is popularly known as a UPI-centric payment app. This platform lets its users transfer money from one bank account to another account. 

PhonePe is not only a payment app but it also renders other services and products such as delivering food, grocery products, insurance services, and other services as well. 

With its diverse services and huge customer base, the PhonePe platform is becoming the first choice of all digital payment users. In the year 2020, the PhonePe platform earned a total revenue of Rs. 427 crores. 

Similar to the other payment apps Phonepe also earns its revenue from its various sources such as promotion of products and more. Moreover, just like recharge centers earn their profits from the telecom companies, the Phonepe platform also makes its money in the same way. 

  • Phonepe earns a fixed amount of fees or commission on every recharge or transfer of money from the telecom companies or banks. 
  • PhonePe also earns a huge percentage of its revenue from investment and insurance services. 
  • PhonePe has also started to promote products of other brands on its own platforms and earns a percentage on the sale of such products. 
  • The app also earns its revenue for every transaction made for the payment of electricity bills, water bills, gas bills, and more. 
  • Phonepe was the first-ever platform that introduced the concept of processing fees. PhonePe charges its customers a fixed amount percentage on every transaction made to transfer money from their bank account to the PhonePe wallet. 

Even after PhonePe charges their customers a small amount of money as fees, millions of users still use PhonePe because of its safety and fast transactions. 


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