Can 50 Lakh Payment Devices Take Digital Payments To India’s Last Mile? PhonePe Bets Big

PhonePe plans to expand its merchant network across smaller towns and rural areas by hiring more than 20,000 frontline sales employees and deploying over 50 lakh payment devices during the next 12 months.

The company will place the new employees on its rolls over the coming year. It will deploy SmartSpeakers and POS devices across the country, with around 50 per cent of the devices going to rural India.

The expansion will extend digital payment acceptance to Tier 6 towns and villages.

PhonePe said the recently announced Merchant Discount Rate (MDR) framework will support its long-term investment in merchant expansion.

The company pointed to initiatives such as a dedicated fund that uses 5 per cent of the MDR amount collected for small-merchant expansion, particularly in deep rural areas.

The company said the new labour codes have streamlined compliance requirements and will help it recruit and onboard a large on-roll workforce more efficiently.

PhonePe aims to use its expanded frontline team to reach merchants in smaller towns and villages, complete KYC procedures, install payment devices and provide continued support.

The company expects the expansion to bring more small businesses into the formal financial ecosystem.

A digitally active and KYC-compliant merchant network can improve visibility into business activity and help eligible merchants access formal financial services, including institutional credit.

Also Read: Can Your Phone Handle Pro Video Editing? Adobe Premiere Says Yes