How Phonepe Earns Money ?

How Phonepe earns Money ? Its Business and Revenue model ?

PhonePe Private Limited or PhonePe is an Indian e-commerce payment system and digital wallet company headquartered in Bangalore, India. It was founded in December 2015, by Sameer Nigam and Rahul Chari. PhonePe app went live in August 2016 and was the first payment app built on Unified Payments Interface. So How does Phonepe Earns Money ?

They allow user to link their bank accounts directly to Phonepe. User can send and receive payment through this. But one wonders how does Phonepe earns money ? They are not paid for any UPI transactions so how do they make money out of it ? what is their revenue model? Here is how Phonepe earns money:

Phonepe Earns money through  these

Phonepe earns money mainly through commissions by many channels like:
1. Mobile and DTH Recharge(Prepaid)
2. Credit Card Bill, Insurance Premium, School Fees and Municipal Tax Payment
3. Data Card, Broad Band and FasTag Recharge
4. Utility Bill Payment ( Electric Bill, Water Bill, LPG Refill, ,Post Paid Bill etc)
5. Gift Cards and Vouchers Sales
6. Loan Repayment
7. Subscriptions Sale(Hotstar etc)
8. Merchant Services: Phonepe has 6.5 million active registered Merchants in their app. Grocery, Healthcare, Fuel, Food, Retail & Shopping, Service and utilities, Entertainment, Hotels and Lodging, Travel and Commute etc. It accepts payment on behalf of these merchants and charges somewhat between 0.5-2.0 % per transaction.
9. App Transactions: Phonepe has different other apps like Ola, Swiggy, Domino’s, Grofers, Netmeds, Docsapp, Lenskart etc on their platform. When you uses Phonepe app to Order food and Medicine, Book Taxi, Consult a doctor or Buy Spectacles through these apps, it charges a commission on each transaction.
10. Mutual Funds, Gold Bonds are also sold for a percentage of commission.
Now they are venturing into new dimensions like IPO offerings and Sale of Shares. As Digital Marketing platforms are increasing the potential of Phonepe is also increasing.

Hopefully I have included all aspects of their revenue earning sources, if anything misses out please write it in the comments section.

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