After the demonetization occurred, digital payments have started making a buzz in India. PhonePe app is one app that can be used to make digital payments using your smartphone. It’s the first UPI-based payment app launched in India which is introduced by the e-commerce giant Flipkart.
UPI (Unified Payments Interface) is a payment system that enables you to transfer money from multiple bank accounts to any bank using a smartphone. UPI system was launched by NPCI (National Payments Corporation of India) with RBI’s vision of migrating towards a cashless or you can say a less-cash nation. Here’s all you need to know about PhonePe app.
PhonePe helps you make easy mobile payments throughout India in a safe and secure environment. It uses the UPI platform which helps you to instantly transfer the money from one bank to another by using a mobile number or VPA (Virtual Payment Address). In addition, PhonePe also comes with a digital wallet for quick refunds.
Here’s the best thing about this app, it enables you to send money directly to the bank account without needing a credit card or debit card, OTP (One Time Password), or any other security passwords you use when making payments. You may have seen other apps like Paytm which requires you to add money to the wallet before sending the money to a friend or any merchant. However, in the case of PhonePe, you don’t need to add balance to the wallet to send the money, but rather it directly debits the amount from your bank account. That’s quite an hassle-free process, isn’t it? You can transact a maximum of ₹1,00,000 per transaction from your bank account.
How to Get PhonePe App for your Android Mobile:
PhonePe app is available on Android platform. Get it from Google Play Store. Since the app is just launched, it isn’t available for iPhones and Windows phones.
Features of the PhonePe App
- Send, Request Money from friends/family by entering their number, name or VPA. Split Bills with your friends for movies or dinners.
- Recharge your Mobile, Data Card, DTH and Pay Postpaid Bills, Landline, Electricity, and Gas Bills.
- Check your bank account balance
- Merchant Cashback and Refunds added to your wallet instantly.
- Netbanking, Debit & Credit card top up not allowed.
- You can withdraw wallet balance instantly to your Bank account. No additional charges.
How to Setup PhonePe App on your Android phone
When you install the PhonePe app on your Android, you will be asked to enter your Name, Email, and Phone number to create an account. Please note that it sends an SMS from your phone to verify your number, no OTP is required to authenticate it further. No sensitive data is shared. Make sure to enter the number linked to your bank account for easy process.
Now create your unique VPA (Virtual Payment Address) for your account. This is used to send and receive payments. It is somewhat like a username for your account, keep in mind your VPA plays an important role in receiving payments.
If you have entered a phone number that is linked to your bank account, the PhonePe app will automatically fetch details of your bank after you select the bank.
The Importance of MPIN on PhonePe App
Goodbye OTP, hello MPIN. MPIN will be the only PIN you will require to make payments. Add a 6-digit MPIN that you can remember. Setup your MPIN under Bank Accounts tab.
- Select the bank account and enter the last 6 digits of your Debit card along with the expiry date.
- You will receive an OTP shortly. Enter OTP and complete the authentication process.
- Once done, you have successfully created your MPIN.
Safety Advice: Do not share your MPIN with anyone.
Adding Bank account and VPA contacts on PhonePe app
Adding more bank accounts is simple. Go to Main Menu -> Bank Accounts -> Add New Bank Account. Enter IFSC, Account holder name, Account number and confirm.
Similarly, to add a VPA, go to Main Menu -> Manage Contacts -> Add VPA Contact. Enter the VPA of your friend or a contact. Verify the name. Done.
To view your VPA address, swipe from the left on the main screen and tap your name.
How to Send money with PhonePe App
What’s more frustrating than adding the money to the wallet and then pay to the merchants. Instead of adding money to the wallet, you can directly pay from your bank account to a mobile number or VPA.
- Hit send on the main screen.
- Choose a bank account or a VPA contact you want to send money to.
- Enter the amount.
- Choose your bank from which you want to pay.
Transfers using PhonePe wallet only works with PhonePe users.
Send and Receive money using QR code
Transfer money to your friend or any merchant by using their QR code. Like Paytm, use QR code to pay the money from your PhonePe account.
- Simply scan the QR code using your smartphone’s camera. The merchant can be a groceries store, a gas station or petrol pump, a restaurant, or cab services. You can access it from the bottom of the main app screen
- To view your QR code, swipe from the left and select ‘My QR Code’ from the list.
Topup your PhonePe wallet
Here’s how to add money to your PhonePe wallet.
- Go to Wallet, swipe to Topup.
- Enter the amount and your MPIN you’ve created to refill your wallet.
If you topup, you will receive an additional ₹50 cashback in the wallet which can be withdrawn into the bank account.
Wait, wallet balance has an expiry! Your wallet balance will continue to be active as long as you make transactions at least once in two years.
Withdraw money to your Bank account
To withdraw the money from your wallet, simply drag and drop the wallet as shown and receive the money shortly into your bank account.
PhonePe doesn’t charge you anything for transacting as well as withdrawing the money. It is completely free.
How to Request and Split money with PhonePe App
To request money,
- On the main screen, tap Request.
- Choose the VPA or bank account.
- Enter the amount and hit Request.
The receiver’s phone pops up a notification about the request.
Split money if you go out with your friends for a movie, trips, or dinners. To do that,
- Tap Split a bill.
- Choose VPA contacts.
- Enter the amount properly for each.
- Split the bill
Recharge and Pay bills using PhonePe app
Similar to Paytm and Freecharge, you can also recharge your mobile, DTH, pay utility bills, insurance, and others with PhonePe.
- Just head under the Recharge tab on the main screen
- Enter the amount you want to recharge or pay.
- Select the bank from which you want to pay and continue.
Transaction limits on PhonePe
- Wallet Transactions: ₹10,000 maximum per month.
- Bank Account Transactions: Up to ₹1,00,000 per transaction.
- Wallet Balance Withdrawal: Up to ₹5,000 per transaction. Maximum ₹25,000 per month.
Frequently Asked Questions
1. What is VPA?
VPA is a virtual private address which uniquely associate a user’s identity with his/her bank account. You can just share your VPA with any merchant site, and it can make a payment request to you. You can also send money to anybody by using their VPA instead of their mobile number. You don’t have to share private and confidential information like mobile number, bank account number, IFSC codes, etc.
2. What is the difference between PhonePe and Paytm, Freecharge Wallet?
Unlike Paytm and Freecharge Wallets, users don’t have to load funds to the Phonepe UPI wallet. Customers can use money directly from their bank account.
You No longer have to worry about running out of wallet balance to go through the annoyance of topping up your wallet before a transaction. You can make payments from your bank account using just a mobile number or a virtual ID.
3. What payment options are available on Phonepe?
You can make transfers via two options one Phonepe
4. Can I use PhonePe if My Bank account is not live on UPI?
If your Bank account is not live on Unified Payment Interface (UPI), you can still add your bank account to the PhonePe app. But, you will only be able to receive payments or withdraw your balance into it.
5. What are the transactions limited in PhonePe?
For Wallet Transactions: A maximum of Rs 10,000 Wallet Transactions per month.
For Bank account transactions: Transfers through your bank account have a limit of Rs. 1 Lakh per transaction.
For Wallet Balance withdrawal: you can withdraw up to Rs. 5000 from your wallet balance into your bank account per transaction. Maximum withdraw limit per month is Rs 25,000.
6. Can I send money to anyone using PhonePe?
Transfers using PhonePe wallet can only happen between PhonePe customers.
You can send money from your Bank account using PhonePe, only if your bank is live on UPI.
If your bank is live on UPI, you can send money from your bank account to anyone who linked their bank account to any UPI-Enabled app.
Send Money from Bank account to other’s PhonePe wallet is not allowed. So, if you send money to a PhonePe user who has not linked a bank account with PhonePe, the transaction will fail.
7. Are there any charges for using PhonePe?
PhonePe doesn’t charge you anything for using PhonePe to make transactions. Even withdrawal of wallet balance into your bank account is free.
8. How safe is PhonePe?
PhonePe is very safe. You have to enter your MPIN for every transaction which is known only to you. Do not share your MPIN with anyone.
9. Does my PhonePe wallet balance expire?
Your wallet will be active, and the balance will not expire as long as you transact at least once in 2 years.
10. Can I link multiple Bank accounts with Phonepe?
Yes, you can. Go to Main Menu >> Bank Accounts >> Add new Bank account.
However, at any point of time, only one bank account can be the default with your Phonepe account. You can set your preferred bank account as the default account.
11. How can Phonepe get all my bank account details when I just provide my mobile number.
Phonepe can’t see or store all your Bank account details. The UPI payment platform (built by NPCI – a RBI regulated entity) retrieves the account details linked with your mobile number in a masked manner. As long as your mobile number is registered to your bank account, Phonepe will pre-fetch the details from your bank over a secure network.
According to NPCI (National Payments corporation of India), the UPI application of 19 banks will be available at Google Play Store.
Here is the list of Banks with UPI: Andhra Bank, Axis Bank, Bank of Maharashtra, Bhartiya Mahila Bank, Canara Bank, Catholic Syrian Bank, DCB Bank, Federal Bank, ICICI Bank, TJSB Sahakari Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank, South Indian Bank, Vijaya Bank, YES Bank, IDBI and RBL Bank.