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Why More Merchants are Choosing PhonePe: A Smarter Way to do Business

PhonePe Editor|3 min read|03 September, 2025

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India is rapidly moving towards a cashless economy, with more customers choosing UPI, wallets and credit cards for everyday purchases. This digital shift has transformed how merchants do business, creating faster transactions and broader opportunities. Take Sridhar, a grocery store owner in the suburbs of Thane. Like millions of merchants across the country, he now handles more digital transactions than ever before. While this makes it easier to serve his customers, it also leaves him worrying at the end of the day. Was today profitable? Did he receive all the online payments during the rush hour? Is there a mismatch in the amount received and goods sold? Will the bank approve his loan for business expansion?

From the bustling streets of Bhadohi in Uttar Pradesh to the spice bazaars of Palakkad in Kerala, these concerns echo across India’s small and medium business. Merchants are embracing digital payments, but many still struggle with limited tools, lack of visibility into business insights and difficulties in accessing timely credit. 
Over the years, PhonePe has worked closely with its vast merchant network to understand these day-to-day challenges in depth. In response, it has built solutions that go beyond just accepting payments, enabling merchants to simplify operations, track their growth and run their businesses with confidence.

Let’s understand what are the most common issues that merchants face:

Regardless of the size or industry, most merchants face similar challenges that can significantly hinder growth.

  • No clear view of their business performance: Merchants today are often in doubt about how their business is really performing. They may lack performance data, miss seasonal trends, and may be unaware of popular products. Managing cash adds another layer of difficulty, making reconciliation and accounting more complex. All this leads to poor inventory planning, disrupted operations, and slower business growth.
  • Limited access to credit: Small businesses drive the economy however struggle for working capital owing to high credit risk, poor financial records, low revenues, limited digital footprints or being in remote locations. Even if credit facilities are available, timely access especially during peak periods such as festivals is often an issue. Getting the right investments at the right time makes all the difference for these businesses.
  • Fraud payments and confusion: Payment uncertainties can become a bigger problem that may go beyond just momentary confusion. Missed or underreported payments can easily lead to disputes or revenue losses. Quick verification of payments eliminates disputes and frauds.
  • Limited and slow support: Traditionally payment issues take time to resolve, which hurts the cash flow. For every merchant, active assistance is essential for their business success.

How PhonePe solves merchants’ everyday problems:

In response to these challenges, the PhonePe Business App was created as an all-in-one platform to streamline operations and help merchants run their business with ease.

  • Business insights made easy: The PhonePe analytics dashboard gives merchants a clear view of their transaction and settlement history. With consolidated records, merchants can easily confirm payments received, track settlements, and simplify their accounting and reconciliation. Along with this, they can also monitor daily, weekly and monthly trends of the past six months to identify opportunities, plan better and make informed decisions.
  • Easier access to credit: Every transaction improves a merchant’s digital footprint. Better record keeping ensures increasing chances of loan approvals and opens doors to financial services that were previously out of reach. The app helps merchants build a credit profile that can help them grow their business.
  • PhonePe SmartSpeaker – instant payment confirmation: Real-time voice notifications eliminate doubts about transactions, preventing disputes and frauds, so merchants can focus on running their business peacefully.
  • PhonePe POS – faster checkouts, smoother payments: With PhonePe’s POS solution, merchants can accept card and digital payments quickly and securely. Faster checkouts mean happier customers, while automated settlement records reduce manual errors and help merchants keep track of their daily earnings with ease.
  • Support when the merchant needs it: PhonePe merchants have access to speedy assistance through chatbots, self-serve tools, and FAQs that address a wide range of queries. Quick resolutions help save valuable time, enabling merchants to focus on growing their business.
  • Use PB app in any language: The PhonePe for Business app supports 11 languages, including English, Hindi, Marathi, Bengali, Tamil, Telugu, and Kannada, among others. Merchants can choose the language they are most comfortable with for a smoother experience.

Whether it is a small neighbourhood store or a growing enterprise, PhonePe’s platform empowers merchants with all the essential tools to operate their business seamlessly. PhonePe Business is a comprehensive platform that provides real-time payment notifications, performance reports, SmartSpeaker integration, multiple language support, and quick assistance. All these features provide an ecosystem in which businesses can flourish. 

The future of business in India is digital, enabled by the best technology that solves real problems. For Sridhar and millions of merchants like him, that future is already here with PhonePe.

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