PhonePe Payment Gateway: Pricing, Integration, And Alternatives

PhonePe Payment Gateway (PhonePe PG), operated by PhonePe Limited, enables Indian businesses to accept UPI, card, and netbanking payments through a single integration.

Key takeaways

• PhonePe PG is a UPI-first platform that also supports card and netbanking payments. It is built and operated by PhonePe Limited, an RBI-authorised Payment Aggregator.
• Pricing is transaction-based, and the Standard Plan is often offered for free as part of promotions. Otherwise, the listed rate is 1.99% with no setup or annual maintenance fees.
• Businesses can integrate PhonePe PG in several ways, including a hosted Standard Checkout page, custom APIs, Android and iOS mobile SDKs, and ready-made plugins for platforms such as Shopify and WooCommerce.
• PhonePe PG is designed for Indian businesses settling in INR. Businesses without an Indian entity can’t sign up for PhonePe PG directly and should work with a global payment provider to accept UPI payments from Indian customers.
• PhonePe PG supports PCI DSS compliance and bank-grade encryption. Payments are settled to the merchant’s linked bank account within one business day.

What is PhonePe Payment Gateway?

PhonePe PG is a digital payment infrastructure that enables businesses in India to accept and manage payments across various methods, including UPI, cards, and netbanking. Operated by PhonePe Limited (formerly PhonePe Private Limited), an RBI-authorised Payment Aggregator, PhonePe PG has over 700 million registered users and 50 million registered merchants in its network.

Businesses can sign up for a PhonePe Business account by easily completing the KYC documentation and receive the credentials required for integration. PhonePe manages the payment authorisation and collection process and settles the funds into the merchant’s linked bank account.

Supported payment methods

Key features for online payments

Beyond basic payment acceptance, PhonePe PG includes features to reduce checkout friction and give merchants more flexibility when collecting payments.

• Powerful dashboard: Provides centralised access to transaction reports and analytics, helping businesses monitor payment activity and make informed decisions
• UPI AutoPay: Supports recurring and subscription payments without requiring customers to keep a card on file
• Payment links: Allow merchants to create and share a payment link through SMS, email, or other channels to collect payments without a website or app
• Dynamic QR codes: Generates a unique QR code for individual transactions, helping reduce errors associated with manually entering a virtual payment address (VPA) and simplifying the payment process
• Standard checkout: Provides a hosted, secure checkout experience that can be embedded on the merchant’s site, keeping customers in a seamless payment flow and reducing the need to redirect them to a separate payment page. This helps minimise friction during checkout and potentially reduce cart abandonment
• Intelligent routing: Routes transactions based on payment-processing conditions to maintain reliable, smooth payment flows and higher success rates, particularly during periods of high demand
• Robust security: Uses advanced encryption and authentication measures to protect transactions and customer data
• Dedicated customer support: Provides round-the-clock support to assist businesses dealing with any payment processing issues or queries.

How to integrate PhonePe Payment Gateway: The 5-step approach 

1. Create a PhonePe business account. Businesses can sign up through PhonePe’s business portal, providing the required KYC and bank account details for settlement.
2. Get the API credentials. Once the merchant account is approved, the API credentials needed for configuration can be found on the merchant dashboard.
3. Choose an integration method. PhonePe PG offers several options, including a standard checkout API with a hosted payment page, a custom API integration, Android and iOS SDKs, and plugins for platforms such as WooCommerce, Shopify, OpenCart, and Magento.
4. Test the payment flow in the sandbox. Before going live, businesses can use PhonePe’s sandbox environment to test the integration and check how the checkout handles successful transactions, failed payments, refunds, and other edge cases.
5. Go live and validate the setup. Once the integration is ready, businesses can switch to live payments and monitor the first transactions. It’s important to ensure that payments, refunds, and settlements are processed correctly and that the transaction ID and settlement reports in the dashboard match the actual activity.

Pricing plans and settlement

Security and compliance

As a trusted payment gateway for India’s digital commerce ecosystem, PhonePe PG complies with PCI DSS and employs multilayered encryption to secure transactions and financial data.

Features such as the Standard Checkout hosted page provide an additional layer of separation by keeping card data off the merchant’s systems. Sensitive card information is handled directly within PhonePe’s secure environment rather than passing through the merchant’s servers.

As an RBI-authorised Payment Aggregator, PhonePe also operates within the regulatory framework governing payment aggregators in India. This includes requirements around the handling and safeguarding of merchant funds between collection and settlement.

PhonePe Payment Gateway alternatives for global businesses

The right alternative for PhonePe PG depends greatly on where a business is legally registered.

For India-registered businesses

PhonePe PG alternatives for India-registered businesses include RBI-authorised payment aggregators or bank-led payment gateways operating in India. While these providers operate within the same broad regulatory framework, they can differ in terms of:

• Payment method coverage: Support for credit and debit cards, bank transfers, and digital wallets
• MDR: A part of MDR is paid to the payment gateway, so the overall fee can change from one provider to another
• Settlement cycle: How quickly payments are settled into the merchant’s bank account can vary between providers
• Integration options: Including hosted checkout, custom APIs, mobile SDKs and ready-made e-commerce plugins.

Merchants should compare these features against their requirements to find the ideal payment solution.

For businesses without an Indian entity

International businesses without an Indian entity can’t sign up for PhonePe PG directly. The alternative for foreign merchants looking to serve Indian customers is typically a global payment provider that offers UPI as part of a broader payment stack.

Unlimit is a global financial infrastructure provider that supports UPI alongside 1,000 other alternative payment methods. Through a single integration, Unlimit helps cross-border merchants reach customers across more than 200 markets, including India.

FAQ