In order to support MSME (Micro, Small, and Medium Enterprises) merchants nationwide, PhonePe has created its own payment gateway.

With a market share of more than 50% by value, PhonePe is already the market leader in UPI.

PhonePe launched its Payment Gateway business to offer the best-in-class payment experience to customers and merchants alike, the firm said in a statement. This was made possible by the company’s capacity for handling large-scale transactions and the high level of consumer trust in the platform.

Range of services

A payment gateway is a piece of software offered by outside platforms that enables safe money transfers from a customer’s bank account to a merchant’s payment portal.

The 450 million registered users of this company can choose from a variety of services, including wealth management, loans, stockbroking, a shopping app called Pincode that is based on the Open Network For Digital Commerce (ONDC), and account aggregation.

Reliance on external gateways

To handle payments on its app, PhonePe has relied on third-party payment gateways.

With this introduction, the fintech company’s in-app payments are no longer dependent on third-party channels.

The business wants to reach out to bigger physical and online retailers, including small and medium-sized enterprises.


The business added, “The PhonePe Payment Gateway is dependable, guarantees merchants a 100% uptime, and has the best success rates in the market.

With real-time instrument health tracking, it proactively detects downtimes and assures stable success rates of transactions.

Additionally, after obtaining customer authorization, it conforms with RBI Laws to securely store customers’ tokenized cards in the PhonePe Card Vault.

Initial free onboarding

The business presently offers free onboarding to new merchants.

While most payment gateways impose a basic transaction cost of 2%, this is only a first offer.

“While most PGs charge a standard transaction fee of 2%, PhonePe has a special offer for new merchants to onboard for free, with no hidden charges, setup fees, or annual maintenance fees,” the business claimed in a statement.


Its rivals include Pine Labs, PayU, Cashfree, CCAvenue, Razorpay, Cashfree, and Cashfree. One97 Communications Limited, Paytm’s parent firm, also introduced its own payment gateway in 2012.

Online payment gateway Plural was introduced by offline market leader Pine Labs, and a similar product will be introduced soon by Mswipe.

Ezetap was purchased by online gateway provider Razorpay last year in order to expand into the offline market.


Does PhonePe have its own payment gateway?

PhonePe has its own payment gateway now; Making ecommerce profitable.

Does Paytm have its own payment gateway?

Paytm Standard Checkout provides a secure and PCI-compliant way to accept payments on both website and App through different payment sources like Credit/Debit Card, Net-Banking, UPI, and Paytm Wallet from your customers.

Is UPI a payment gateway?

Unified Payments Interface (UPI) is real-time, secure payment system developed by National Payments Corporation of India (NPCI). It helps in immediate money transfer easily through mobile device 24*7 and 365 days.

Is Google pay a payment gateway?

Yes, Google Pay API supports onboarding ecommerce platforms. Payment processor, gateway, or ecommerce platform partners that host a checkout page on behalf of their merchants can use Google Pay's hosted checkout feature.

Is Bhim a payment gateway?

Bharat Interface for Money (BHIM) provides fast, secure, reliable medium to make digital payments through your mobile phone using UPI (Unified Payment Interface) platform via Mobile App and USSD (Unstructured Supplementary Service Data) platform via *99# service.

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