PhonePe Business Model: New Way Of Doing Cashless Transactions


Online payments are the new way of transaction, with cashless transactions coming into existence online payment gained the interest of the people. Online payment is so convenient to people, nowadays that everybody wants to get all their work done while sitting on a chair, no need to go anywhere or stand in lines for hours, the online payment apps take care of all your needs.

There are so many options for online payments, but this article will be talking about one of the major payments app that is the PhonePe Business Model. 

Any kind of payment! Just a click away.

PhonePe Business Model: The Beginning

FxMart received its license to operate on 26 August 2014. Phonepe was incorporated in December 2015. The company was acquired by Flipkart in April 2016 and as part of the Flipkart acquisition, the FxMart license was transferred to PhonePe and it was rebranded as the Phonpe Wallet. Founder of PhonePe Sameer Nigam was appointed as the CEO of the company.

The company was partnered with YES Bank in August 2016, then launched the UPI-based mobile payment app, based on a government-backed UPI platform.

In the time of 3 months, the app was downloaded by more than 10 million users, in 2018 PhonePe become one of the fastest Indian payment apps to get a 50 million badge on the Google play store. IN August 2017 PhonePe took over the BHIM and emerge as one of the market leaders in UPI transactions.

The PhonePe Business Model

  • PhonePe was founded by Sameer Nigam, Rahul Chari, and Burzin Engineer in December 2015. The PhonePe app, based on the Unified Payments Interface (UPI), went live in August 2016.
  • PhonePe is an Indian digital payments and financial services company headquartered in Bangalore, India.
  • Phonepe is available in more than 11 Indian languages and accepted as a payment option at over 17.5 million offline and online merchant outlets across 500 cities all over India covering the area of food, travel, groceries, medicines, movie tickets.
  • Users of PhonePe can send and receive money, recharge mobile, DTH, data cards, pay to shops, invest in tax saving funds, liquid funds, by insurance and mutual funds, and gold.
  • More than this phonePe allows users to book Ola rides, pay for travel tickets, and book flights and hotels.
  • Phonepe is licensed by the Reserve Bank of India for issuance and operation of a Semi-closed prepaid payment system with authorization number 75/2014 dated 22 August 2014


Just like every clothing, footwear, beauty products, etc. have different brands and competitors, online payment apps also have different players, some of them are mentioned below.

Paytm is one of the very known online payment apps. More than 20 million merchants all over India use their QR code payment system to accept payments directly into their bank account. The company also uses advertisements, paid promotional content to generate revenues.

  • Googlepay.

Google Pay is an online payment system developed by Google, enabling users to make payments with Android phones, tablets, or watches.

The USP of Google Pay is that it supports passes suggest coupons, boarding passes former campus ID cards, car keys, event tickets, movie tickets, public transportation tickets, store cards, and loyalty cards which make Google Pay a compotator to the PhonePe business model.

  • Mobikwik.

Mobikwik is one of India’s largest digital payment platforms which is serving more than 12 crore users with a quick transaction, mobile transfer, cell credit service, and much more.

Mobikwik enables better engagement of businesses with individuals through multiple options of online bill payment modes. It has grown over the years to build a smooth, safe and secure platform for a hassle-free experience for users.

Razorpay is the only payment solution in India that allows businesses to accept, process, and disburse payments with its products suite. It gives users access to all payment modes including credit card, debit card, net banking, UPI, and popular wallets including jio money, movie quick, Airtel money, free charge, Ola money, and payZapp.

  • Paypal.

Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money and offers choice and flexibility when sending payments, paying, or getting paid.

Available over 200 markets around the globe, including Braintree, Venmo, and Xoom, enable consumers and merchants to receive money over 100 currencies, withdraw funds in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.


  • Win the best mobile payment service category and the technology category at IAMAI India digital awards.
  • The phonePe ATM goes live across 10 Lac stores in 300 cities.
  • Launches liquid funds, super funds and seven more curated mutual fund category products.
  • Launches travel insurance, coronavirus insurance, and motor insurance & insurance offerings.
  • Becomes India’s fastest-growing insuretech distributor with the sale of five lakhs policies in five months.
  • Gross is the 250,000,000 registered users, the market-leading share of over 40% in UPI transactions.