September 17, 2025 · 11 mins read
Santosh Kumar
PhonePe is one of India's biggest and most popular digital payments and financial service providers. The platform supports UPI and debit/credit cards, assisting its users in making online payments with just a few clicks. Besides just money transfers, you can also make payments for mobile recharges and utility bills, and buy gold using this platform.
PhonePe is undoubtedly one of the most revolutionary apps since it has managed to transform the way cash is carried around in India. Here are some of the top noteworthy features of PhonePe:
The Country's First UPI-linked e-wallet - PhonePe is known to be among the first apps that have a government-backed Unified Payment Interface or UPI interface. Designed and set up on the Immediate Payment Service (IMPS) infrastructure, PhonePe can be used for transactions involving two parties via respective bank accounts. The app uses unique identifiers like mobile number or VPA, also known as a unique address. The app lets users avoid using IFSC or account details during these transactions, thus making it a safe option.
No Need for Bank Account Details - Users don’t need to share any crucial information like bank details or IFSC code while using PhonePe. This is why PhonePe is trusted for providing a secure and guarded environment. Nearly 30 banks are available on this platform, including SBI, HDFC, ICICI, etc. All you have to do is link your account with UPI, and after verifying the details like your mobile number, you are good to go. UPI then retrieves your account information via a secure channel whenever you make any transaction. It is important to note that in case your bank is not active in UPI, you will not be able to link your PhonePe account with the bank account. However, you can continue to receive the refunds in your account from Myntra or Flipkart.
Hassle-free Authentication Method - PhonePe is hassle-free to use because it avoids multiple authentications. With PhonePe, you can transfer money from one bank account to another, without providing your card details or waiting for OTPs to complete the transactions. This is applicable even while paying for online or offline shopping.
No Need for Frequent Top Ups - The benefit of keeping your account linked to the app is that there is no need for regularly topping up your e-wallet account. After linking your account, you don't have to worry about being out of funds since the money is directly debited from your bank account.
Easy Transfers, Payments, and Recharges - After your account is linked to PhonePe, you don't need to physically pay your bills. You can simply log on to the app, tap on the requisite icon, and pay your bills.
Increased Limit Per Transaction - The PhonePe app is linked to your bank account, and hence, you can make payments of higher value, even running into tens of thousands. PhonePe has increased the single transaction limit to Rs. 1 lakh. You can also enjoy the longevity of the wallet balance with PhonePe. Your account will remain active even if you only make two transactions a year.
Higher Security - Since PhonePe uses the government-backed platform, you can be assured of heightened safety for all your transactions.
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Many PhonePe users have unused money sitting idle in their PhonePe wallets. If you are worrying about what to do with the wallet money, here is the answer. First of all, you can use this money to make payments in the app or select services that are displayed on the home screen and spend it on them. Secondly, you can transfer the amount to your bank account.
PhonePe Wallet is a tool available on the platform that allows its users to deposit money into a digital wallet. With this money, you can pay PhonePe merchants, your contacts, and your bank accounts.
PhonePe allows its users to add multiple bank accounts to the platform. Remember that the primary account is the default account for sending or receiving money. When you have multiple bank accounts linked to your account, you can choose any of your accounts as the primary account.
Also, there is an auto top-up feature in the wallet, which you can use to top up your bank account whenever the balance is low. You just need to input a one-time UPI e-mandate, and PhonePe will top up the wallet. You can use it to make any payments, and whenever you want to withdraw the amount, you can transfer it to your bank account.
1: On your smartphone, open the PhonePe app.
2: Select "My Money" by tapping.
3: Go to the Wallet/Gifts Voucher Section and select "PhonePe Wallet" from the menu.
4: The "Withdrawal" tab can be found at the top of the display.
5: Drop your bank icon onto the wallet icon by dragging it downward.
6: Only consumers who have finished their entire Phonepe Wallet KYC are eligible for these services, according to RBI requirements.
For a successful transfer, you must add a payment method on PhonePe. The money transfer will be made to the principal-linked bank account once you have
added the bank account. Additionally, please remember that the reward balance in your PhonePe wallet cannot be withdrawn.
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PhonePe users can add money to their PhonePe wallets and use them as a payment method. Additionally, the cashback and rewards received on PhonePe are also credited to your PhonePe wallet. You can quickly set up your PhonePe wallet by following the steps listed under:
1: Open the PhonePe app on your device.
2: Click on the ‘Wallet’ icon on the home screen.
3: Enter the details according to the mentioned documents.
4: Click on ‘Submit’.
Your digital wallet will be activated and ready to use for payments, phone transfers, and your bank.
The Reserve Bank of India has made it mandatory for payment apps and digital wallets to maintain proper databases of customer details. These apps and wallets use KYC to collect the required details directly from their customers. It is important to complete your KYC to use all PhonePe features. You can easily complete your KYC in PhonePe by following these steps:
1: Open the PhonePe app on your smartphone.
2: Click on ‘PhonePe Wallet’.
3: Select ‘Upgrade Wallet’.
4: Complete your Aadhar, PAN, and address verification to initiate video KYC.
5: Complete the video KYC by following the directions of the KYC executive.
Your KYC will be completed after the details provided have been successfully verified.
NOTE- KYC completion in PhonePe requires the following documents:
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1: Aadhar Card
2: PAN Card
If the current address and the address mentioned in the Aadhar card are different, then any one of the following documents is also mandatory:
3: Voter ID
4: NREGA Job Card
5: Passport
6: Letter of Residence from the National Population Register
7: Driving License
Terms and Conditions- Protecting user data and accounts is important for any payment app like PhonePe. Certain requirements must be satisfied before using PhonePe and the PhonePe wallet to ensure user safety. It is important to fulfill the terms and conditions below to use the PhonePe wallet:
1: You should be 18 years old and an Indian citizen.
2: KYC completion is mandatory for using the PhonePe wallet.
3: Only specified payments can be made via PhonePe wallet.
4: You must agree to the usage policy of PhonePe.
5: Adhering to the monetary usage limits set by PhonePe.
PhonePe Wallet (including Full KYC Wallet) or eGVs issued by PhonePe are not subject to any membership fee. PhonePe does not charge you any fee for creating an account or opening a PhonePe Wallet, or for the use of PhonePe services, unless specified explicitly.
A convenience fee may be charged for certain payment transactions you may make using your PhonePe Wallet, the details of which shall be published to you during such transaction. You shall be notified before any such charge is added to your transaction.
PhonePe may charge Users a PhonePe Wallet loading fee(s) based on the instrument of choice, and the details of the charges shall be displayed to the Users upfront while loading their PhonePe Wallet. A convenience fee is charged for credit-card-based loading of PhonePe Wallet, ranging from 1.5% to 3% + GST. A convenience fee is charged for debit-card-based loading of PhonePe Wallet, ranging from 0.5% to 2% + GST. The exact charges will be shown on the application before you complete the loading.
PhonePe reserves the right to change its fee(s) policy from time to time. We may, at our sole discretion, introduce new services and modify some or all the existing services offered, and may introduce fees for the new/existing services offered or amend/introduce fees for existing services. Changes to the fee(s) policy shall automatically become effective immediately and will be notified via changes to these Wallet TOUs/ Agreement.
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1: All payments made through PhonePe Wallet/eGV for mobile/ DTH recharge, bill pay, or any other payment processed by You on the PhonePe Platform or Merchant partners accepting PhonePe Wallet (including eGVs) as a payment option shall be final, and PhonePe shall not be responsible for any error or omission by You or Merchant partners. Bill Pay and Recharge transactions cannot be refunded, returned, or cancelled once initiated.
2: If You erroneously processed a payment to an unintended Merchant or processed a payment for the wrong amount (for instance, a typographical error at Your end), Your only recourse will be to contact the Merchant directly to whom You have made the payment and ask them to refund the amount. PhonePe shall not be liable to handle such disputes, nor can we reimburse you or reverse a payment that you have erroneously made.
3: In case we receive a refund for a transaction that you have processed earlier, we will refund the funds back to the source, including PhonePe Wallet/eGV, unless specified or directed by you otherwise.
4: In case of any cancellations where payments were made using any wallet loaded through a cashback offer, any refund of such amount shall continue to remain as a wallet and is non-withdrawable to your bank account. This can continue to be used on the PhonePe Platform for eligible transactions.
5: Further, in case of cancellation of a transaction, the refunded amount, less cashback (credited in the form of eGV), will be credited back to the source of funds used while making payment.
The process of transferring money from a PhonePe wallet to your bank account is simple. According to the Reserve Bank of India (RBI) requirements, users who have finished their PhonePe Wallet KYC are eligible to avail of these services. Also, do not forget to add a bank account to your PhonePe account. Otherwise, your money transfer from your wallet to your bank account will not be successful.
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Open the PhonePe app on your smartphone and tap the 'My Money' option. Now, go to the 'Wallets/Gift Voucher' section and tap on the option PhonePe Wallet > Withdrawal. Drag down the wallet icon and drop it on your bank icon. Moreover, as per the RBI guidelines, this facility is only available to customers who have completed their full KYC of the PhonePe Wallet.
To use UPI and Debit/Credit Cards, there is no need for any KYC. As per RBI guidelines, in order to use PhonePe Wallet, users need to provide a minimum of KYC details.
Yes, PhonePe wallet can be used without a bank account.
You can make bill payments through PhonePe using several payment modes. You can use PhonePe Wallet, UPI, Debit Card, or Credit Card. Customers can pay electricity bills for several electricity boards/companies.
The Paytm app can be used by consumers to pay to PhonePe QRs and UPI IDs since these are on the interoperable UPI framework. This works in a vice versa manner as well.
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