PhonePe is a mobile payment platform using which you can transfer money using UPI, recharge phone numbers, pay utility bills, etc. PhonePe works on the Unified Payment Interface (UPI) system and all you need is to feed in your bank account details and create a UPI ID. There is no need to recharge the wallet, because the money will be directly debited from your bank account at the click of a button in a safe and secure manner. The best thing about UPI is that it is a 24/7 service and can be used even on bank holidays and weekends. The app can be downloaded on both Android and Apple phones.
This is a safe and secure application that will help cater to all your banking needs under one roof in a convenient manner. Thee will be no need to go through the cumbersome process of registering a beneficiary, entering bank account details such as account number or IFSC code . All that is required is a Virtual Payment Address (VPA), using which money can be sent at anytime and from anywhere.
How does PhonePe Work
This mobile application works on the UPI system that has been developed by the National Payments Corporation of India (NCPI). The service as of now is powered in collaboration with Yes Bank. When a user downloads PhonePe, he/she will have to key their registered mobile number to register. Once this is done, all information necessary for a transaction becomes live and a user will have a UPI ID, through which all transactions can be carried out. The money will get deducted per transaction through the UPI interface. This app allows users to transact up to Rs.1 lakh in one go.
Here is a list of what you can do with PhonePe:
- Shop online on a list of e-commerce platforms and pay through UPI
- Pay utility bills
- Send and receive money from your phone contact list using UPI
- Recharge mobile and DTH connections
- Check bank account balance
- Register beneficiary
- Handle more than one bank account
- Become eligible for cashbacks
- Split bills
How to Download PhonePe
The app can be downloaded from Google Play Store. The app can be downloaded on all Android platforms. The app is also available on iOS platforms.
How to Register and Set Up PhonePe on Your Mobile
Step 1: Download the app and launch it
Step 2: Follow the initial instructions to allow SMS-based mobile verification. Click on ‘Let’s Get Started’
Step 3: Key in details such as name, email id and choose a 4-digit password
Step 4: Go on to choose a VPA by clicking on ‘Create New VPA’
Step 5: Proceed to choose the bank, after which the app will auto detect bank account details
How to Add Bank Account to PhonePe on Your Mobile
Step 1: Open the PhonePe app
Step 2: Go to the menu and the Bank Account tab. Click on ‘Add New Bank’.
Step 3: Choose the bank account from which money needs to be debited from the available bank list
Step 4: PhonePe will auto detect account details immediately and link the account with the app
Step 5: The next step is to set up the UPI pin. To do this click on the ‘set UPI pin’ option
Step 6: Key in the last 6 digits of the ATM/debit card pin and choose the expiry date. Use OPT and set up UPI pin.
How to Transfer Money through PhonePe
Step 1: Open the PhonePe app
Step 2: Go to the ‘Send’ option on the main screen
Step 3: Key in the VPA of payee
Step 4: Enter the transaction amount
Step 5: Select the bank account from which you want the money to be debited
Step 6: Verify details and send
How to Collect Money through PhonePe
Step 1: Log on to the app
Step 2: Navigate to the home screen and click on the ‘Request’ option
Step 3: Enter the VPA of the person from whom you want to request money.
Step 4: Enter the transaction amount and also enter the deadline within which the request has to be cleared
Step 5: Click on the request option after verifying details
Benefits of Phonepe
- Safe to use
- Available in many local Indian languages such as Hindi, Kannada, Tamil, Malayalam, Assamese, Gujarati, etc
- Available round the clock
- Immediate money transfer
- Instant discounts and cashbacks on transactions
- No hassle of remembering bank account details such as IFSC code
As per new rules it is mandatory to complete the KYC verification process to continue using all services offered by digital payment applications such as this. Each user will have a unique password and no transaction can be authenticated without providing the valid passport. Apart from sending money, users will also be able to generate a ‘Collect’ request through this application. Remember it is required to keep in mind that you should not share your UPI pin with anyone at any point of time to be safe. UPI is a type of payment system that is coined by NPCI in an effort to drive digital growth as far as payments are concerned.
Features of PhonePe
- Recharge and pay bills: Just like other mobile wallet apps in the market, it is possible to pay utility bills and recharge your mobile number through PhoenPe. It is very easy to recharge your phone using this app. To do so, go to the ‘Recharge’ tab, enter the amount, choose the bank account and pay for the same at the click of a button.
- Split a bill with a friend with PhonePe: Going for dinner, the movies, or a trip and wondering how to split the bill? This feature is available on PhoenPe. To split a bill, go to the ‘Split a bill’ option. This is a very easy and convenient option to split expenses when you go out as a group.
- Send, transfer funds using QR code: One of the other features of the PhonePe app is the option to send and receive money using a QR code option. You can simply scan the QR code using the camera of your smartphone.
- Single app for UPI: The main advantage of the app is that it is one stop solution for all UPI transactions. This means that you can have a bank account with any bank and still use the PhonePe app to link multiple bank accounts in the same app. This eliminates the need to install multiple apps.
Some Points to Remember
- As a precautionary measure and for safety reasons, please do not share the UPI pin with anyone at any point of time
- It is also possible to top up your PhonePe wallet, for which users are eligible to get top ups
- However, please note that wallet balances have an expiry date unlike bank balances!
Check IFSC Code for Top Banks:
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FAQ's of PhonePe
- What is a VPA?
- Is IFSC code required for sending money?
- What are the various payment options in PhonePe?
- In case a customer's bank account is not live with UPI can he/she transact ?
- What is the transaction limit in PhonePe?
- Are there any transaction charges for PhonePe users?
- Is it possible to link multiple bank accounts in PhonePe?
- Can I split a bill using PhonePe? If yes, how?
Ans: VPA or Virtual Payment Address is like an email id or type of identification that is used to specifically initiate both collect and send requests in the UPI platform. A VPA is a unique id that a user can choose during the registration process.
Ans: No. There is no need for any bank details to send or receive money. The only piece of information that is required is the VPA.
Ans: There are two payment options in PhonePe: Bank Account and PhonePe wallet
Ans: Transactions cannot be made in the PhonePe app unless the user adds his/her bank account in the app.
Ans: The upper limit for PhonePe wallet transactions is Rs.10,000 on a monthly basis. The cap for bank account transactions is Rs.1 lakh per transaction
Ans: No. At present there are no charges levied.
Ans: Yes. This can be done by going to the main menu, bank accounts and clicking on ‘add new bank account’.
Ans: When you go out with friends and you want a split a bill, PhonePe can be used to split the bill easily. The following is the procedure:
- Click on the ‘Split a bill’ option
- Key in the VPA
- Key in the amount to be payed
- Verify details and confirm the transactions
Ans: In such a case, the funds will be credited back into the account of the payee. If the funds are not credited back within 48 hours, please contact the customer care.
Ans: Yes. One cannot use PhonePe without having an active and valid bank account.
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