PhonePe Merchant Payments: How Businesses Accept QR, POS, And Online Payments

PhonePe is a digital payments platform operated by PhonePe Limited, formerly known as PhonePe Private Limited. It enables merchants to accept payments via cards, netbanking, and digital wallets, and offers tools such as QR codes, point-of-sale (POS) hardware, payment links, and a payment gateway to help businesses manage transactions and settlements.

Key takeaways

• PhonePe is a UPI-based digital payments platform that lets a business accept UPI, cards, netbanking and digital wallet payments across four acceptance modes: QR codes, POS hardware, online checkout, and payment links.
• As of April 2026, PhonePe has over 700 million registered users and 50 million registered merchants in its network.
• Customer payments settle directly into the merchant’s bank account within one business day, rather than sitting in an intermediate wallet balance.
• PhonePe is an RBI-authorised Payment Aggregator, with standard UPI acceptance carrying a Merchant Discount Rate (MDR) of 0.4% for merchants, starting 15 October 2026.
• Businesses without an Indian entity can’t directly accept PhonePe payments and typically require access through a global payments provider.

What is the PhonePe Business App for merchants?

PhonePe is one of India’s UPI-based digital payments platforms. For merchants, it provides the infrastructure needed to accept payments from PhonePe users and customers using other UPI apps.

There are different verticals of the PhonePe app. Shoppers use the consumer PhonePe app to make payments, while merchants use the PhonePe Business App and PhonePe Payment Gateway to accept, track, and manage payments.

Depending on the setup, merchants can accept UPI, credit and debit cards, netbanking, and digital wallet payments, with transactions and payment activity managed through the relevant merchant dashboard.

PhonePe Business App vs PhonePe Payment Gateway

Depending on whether transactions happen in person or online, merchants have two primary ways to accept PhonePe payments.

The PhonePe Business App, used with a QR code and optionally SmartSpeaker hardware or a POS device, is designed for physical checkout. Customers scan the QR code and pay via PhonePe or another UPI app of their choice, or by card.

For online payments, businesses integrate the PhonePe Payment Gateway into their website or app. The gateway supports UPI, cards, netbanking, and digital wallets, with ready-made plugins available for major e-commerce platforms.

Who accepts PhonePe?

PhonePe has a network of more than 50 million registered merchants across different industries.

A large part of this network consists of in-store retailers, such as shops, restaurants, and kiranas. These merchants typically accept payments via QR codes, while higher-volume businesses also use PhonePe’s POS devices or SmartSpeaker hardware.

Online sellers, subscription businesses, and marketplaces use the PhonePe payment gateway to accept UPI, cards, netbanking, and digital wallets at checkout.

Typically, international businesses selling to Indian customers can’t integrate directly with PhonePe. Instead, they work with a global payments provider that supports UPI alongside other international payment methods.

PhonePe payment acceptance modes: QR, POS, and online

QR code payments (in-store)

A PhonePe QR code can be either static (printed once and reused for multiple transactions) or dynamic (a new QR code is generated for each transaction with the payment amount already encoded). In either case, the customer opens any UPI-enabled app, scans the QR code, confirms the payment details, and authorises the transaction.

If a merchant uses PhonePe’s SmartSpeaker, the device announces the payment amount aloud once the transaction is successful, making it easier to track payments. The current SmartSpeaker 2.0 model supports up to 21 languages.

POS and offline acceptance

PhonePe’s POS hardware extends in-person payment acceptance to cards alongside QR-based UPI. This can be useful for physical stores that want to accommodate customers with different payment preferences.

Online and in-app payments (payment gateway/API)

Businesses without a physical counter can integrate the PhonePe Payment Gateway into their website or app via APIs, backend SDKs, Android and iOS SDKs, or plugins for e-commerce platforms such as Shopify and WooCommerce.

PhonePe Payment Gateway supports UPI, cards, netbanking, and digital wallets in a single checkout integration, saving businesses from building separate integrations for each payment method.

Payment links and remote collection

A payment link allows a business to collect payments without having a website or full online checkout.

A merchant can generate a secure link for a specific amount and share it through SMS, email, or a messaging app. The customer can open the link and complete the payment using one of the supported payment methods.

This can be useful for invoicing and one-off or remote transactions where setting up a full checkout page would be unnecessary.

Which payment methods does PhonePe support?

How to become a PhonePe merchant

1. Register online: Sign up through the PhonePe Business App or business portal by providing basic business details and a mobile number.
2. Verify the account: Complete the verification process using the code sent to the registered mobile number or email address.
3. Complete KYC: Submit the required documents, including PAN and Aadhaar details, GST certificate, certificate of incorporation, and board resolution.
4. Link a bank account: Provide the bank account number and IFSC code for the account to which payments should be credited.
5. Receive merchant credentials: Once KYC is approved, the merchant receives a Merchant ID and can set up the relevant payment method, such as a QR code for in-person payments or API credentials for Payment Gateway integration.
6. Start accepting payments: Merchants can begin accepting payments once their setup is approved. Businesses integrating the Payment Gateway should test the payment flow before processing live transactions.

Settlements, fees, and pricing

Customer payments made through PhonePe settle directly into the merchant’s linked bank account within one business day.

Standard UPI merchant payments used to operate under a zero-MDR framework. However, from 15 October 2026, a 0.4% MDR will apply to specified person-to-merchant UPI transactions above 2,000 INR, with exemptions for certain small merchants and specific categories.

Cards and wallets are priced separately and generally carry MDRs that vary by payment method, card type, network, and transaction.

Transaction management & analytics

Beyond accepting payments, the PhonePe merchant dashboard gives businesses a central place to monitor transactions and manage reconciliation. Real-time notifications alert merchants when a payment is received, while the transaction history provides a record of past payments that can be reviewed or exported for bookkeeping.

The dashboard also includes business insights and summary analytics, helping merchants identify sales patterns without manually pulling data from individual transactions. With payments settled into the linked bank account, merchants can use this centralised view to track payments and match sales with incoming funds, reducing some of the manual work involved in day-to-day payment management.

Security & compliance

PhonePe is an RBI-authorised Payment Aggregator. Meaning it is subject to regulatory requirements governing the handling of customer and merchant funds between collection and settlement. Transactions are encrypted in transit, and card payments are processed in compliance with PCI DSS standards.

UPI payment systems in India are also subject to data-localisation requirements, which mandate that payment system data be stored in India rather than processed or held on infrastructure outside the country.

PhonePe Business vs Google Pay Business

How can global businesses accept PhonePe

PhonePe is designed for businesses with an Indian entity. Onboarding requires Indian KYC documentation, and payments are settled into an Indian bank account. Therefore, international businesses have to work with an infrastructure partner that can handle local settlement and compliance on its behalf.

Unlimit is a global financial infrastructure provider with an RBI Online Payment Aggregator licence that connects international businesses to Indian payment methods and offers local INR settlement. This way, international businesses can offer familiar Indian payment options without setting up a separate India-specific payment integration.

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