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.
Where to get PhonePe App for your phone
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.
- Download PhonePe (Android)
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.