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.

Many 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.

Using external gateways only

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

With this introduction, the fintech company’s reliance on third-party gateways for in-app payments is no longer necessary.

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

Features

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.

Free Onboarding At First

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.

Competition

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.