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Laxit Rana
•

Repute • 3m

PhonePe/Gpay revenue Model :- Someone anonymously asked about revenue model of these two so let's break it down for him and for everyone else who is interested in it and is not aware of. I am assuming you are already familiar with such UPI platforms so won't be explaining them . GPAY/PHONEPE CORE BUSINESS :- Whenever User make a payment from one bank to another charge some percentage of that amount from the bank. * Earlier these companies used to charge from sellers as well for instance you ate momos from shop and paid the 100 rupees bill using GPAY ,now the shopkeeper won't be receiving 100 instead they will receive amount with some deduction like 99,98 or 97 like whatever the percentage of cut is . But boom then came "BHARATPE" it made these costs 0 and acquired huge user base specially of small business owner and eventually other players like PAYTM , PHONEPE also had to follow this model . and since then whenever you pay any shopkeeper he recieves the full amount. FINANCIAL SERVICES :- If you use phonePe you would see they have an option of Insurance, Mutual fund and Loan etc so whenever any user takes a loan using phonepe from loan providing services such as KreditBee ,Phonepe will charge some percentage from Kreditbee as phonepe is acting as intermediator. Third -Party Services :- PhonePe also supports food delivery , electercity bill payments, internet recharge etc, Here as well it is acting as an intermediator . so if you do Airtel recharge using phonepe or order food using it , it will deduct some commission from swiggy or Airtel. * So for a user we do not have to pay anything to anyone , we are just acting as a user base to these companies and these companies are making money as an INTERMEDIATOR to actual service provider.

38 replies49 likes

Replies (38)

Murtaza ali Bohara

Stealth • 3m

You miss one thing these platforms also charge service charge on the mobile recharge, DishTV recharge to the user who recharge their mobile or DishTv, it's like 0.01 paise.

1 replies2 likes

Anonymous 8

Stealth • 3m

So, basically, we're all just pawns in the grand game of middlemen wars, where even our momos have a financial backstory.

1 replies3 likes

Anonymous 7

Stealth • 3m

It’s interesting to see how they've adapted over time and found various revenue streams.

1 replies1 like

Anonymous 6

Stealth • 3m

This breakdown really clears up how UPI platforms make money. Thanks man.

1 replies1 like

Woofsta 22

Stealth • 3m

Payment gateways has better business models. Upi apps just selling data to loan aggregators.

1 replies2 likes

Anonymous 5

Stealth • 3m

Whether it’s recharging your DTH or ordering groceries, when you do it through PhonePe, they’re not the service provider. They just link you to the real provider and take a percentage from them. So, every little thing you do on these apps brings them a bit of money

1 replies2 likes

Shanmugapriyan

Stealth • 3m

They also advertising brands to gain revenue charging platform fee from the user by also giving coupons as well

1 replies2 likes

V QUEEN INDIA

Stealth • 3m

All payment Flatform Are Income From Commision On Any Others bill payment and many others

0 replies2 likes

Vishnu kumaran

Stealth • 3m

"Charging from us users as well" The day is not so far.

0 replies5 likes

Anonymous 4

Stealth • 3m

It might look like these apps are doing everything for free, but nothing’s ever really free, right? When you pay your internet bill through GPay, for instance, they’re earning a cut from your internet provider. They’ve just hidden the charges, so you don’t see it directly

1 replies4 likes

Anonymous 3
•

Amazon • 3m

One day they will definitively start charging the users and that will be D-day. Even if the charge 0.1 paisa it will be so money that they can make on total transactions

0 replies2 likes

Anonymous 2

Stealth • 3m

Ever noticed those options for loans, insurance, and mutual funds on PhonePe? That’s them trying to diversify. Every time someone takes a loan through PhonePe, they get a commission from the actual lender like KreditBee. They’re not the ones giving you the loan; they’re just the middleman, making sure they get their share

1 replies3 likes

Harsh Dwivedi
•

Medial • 3m

That’s a pretty good explanation.

1 replies3 likes

Anonymous 1

Stealth • 3m

Earlier, when you paid via GPay or PhonePe at a shop, the shopkeeper didn’t get the full amount because these platforms took a small cut. But then BharatPe stepped in, offering zero charges, and the others had to follow suit. So now, the shopkeepers get 100% of what you pay, and these apps had to find other ways to make money

2 replies3 likes

Havish Gupta

Stealth • 3m

Soon they'll start charging fees from the payer as well

2 replies3 likes

Himesh Jain

Stealth • 3m

I wonder if the brands codes that are given as scratch cards are sponsored or not

3 replies3 likes

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