Empowering Bharat's MSMEs: Reimagining financial inclusion as a full lifecycle journey. * PublishedOctober 29, 2026 For micro and medium merchants in India, accepting a digital payment, whether through an offline QR code or an online Payment Gateway, was the first real step toward becoming part of the formal economy. What began as a simple scan of a QR code on a bustling street corner soon became something far more transformative. Beyond the instant chime of a successful transaction, a digital footprint was being created, one that turned daily cash flow into verifiable financial history. For millions of local shopkeepers, street vendors, and small business owners across Bharat, this shift marked the transition from financial invisibility to inclusion, unlocking access to formal credit, working capital, and a broader ecosystem of growth that was once entirely out of reach. Yet, this milestone was never meant to be the finish line. Adopting digital payments simply laid the groundwork for the merchants to scale their businesses & unlock new financial opportunities. Solving the trust deficit to make digital payments a daily reality. For many small merchants, breaking dependence on cash was daunting due to low tech literacy and hesitation toward digital money. Overcoming this required human connection: PhonePe's Feet-on-Street teams worked directly with merchants to build trust in QR codes, driving adoption nationwide. To solve payment tracking and let merchants focus on customers, PhonePe introduced the SmartSpeaker which provides instant, real-time payment alerts in 21 Indian languages and regional celebrity voices, eliminating language barriers without forcing complex habit changes. Expanding beyond offline counters, PhonePe extended payment acceptance across every touchpoint, from Android POS machines enabling card swipes, taps, and receipts, to robust Payment Gateway solutions powering friction-free online checkouts. Together, these tools give merchants unified operational tracking across offline and e-commerce sales. To formalize and scale MSMEs, PhonePe collaborated with SIDBI to give lakhs of micro-merchants formal identities, bank accounts, tax benefits, and government scheme access. Expanding this via a MoU with DPIIT (Startup India), PhonePe accelerates early-stage startups with preferential Payment Gateway terms, zero-cost Indus Appstore distribution, priority support and onboarding. From digital payments to a full financial journey. Once a merchant is comfortable with digital payments, what comes next? The evolution of a small business's finances can be mapped through a broader journey of four distinct stages: Send, Spend, Manage, and Grow. Digital payments (Send and Spend) lay the groundwork, giving merchants visibility into their payment records and, as they grow, reconciliation across the business. To simplify this, the PhonePe Business App's dashboard provides unified payment reconciliation whether sales occur online via the PhonePe Payment Gateway or offline through QR codes and POS devices. This single-pane visibility directly helps merchants manage cash flows efficiently without manually matching records across channels. As this becomes second nature, merchants move into the Manage stage. Business conversations often focus on total transaction value, but for a business owner, the number that matters most is cash flow. Instant payment updates free merchants from chasing delayed funds, letting them focus entirely on serving customers and growing their business. Eventually, comfort with managing money digitally opens the door to the Grow stage, where merchants become ready for small investments or credit suited to their needs. The real turning point is PhonePe offering business loans based directly on a merchant's transaction history. Eventually, consistent digital payments empower merchants by turning daily sales directly into accessible credit. Devi Rani's story is a perfect example of this. For 23 years, she has run a flower stall beside a temple in Nagarbhavi (Bengaluru), starting her days before dawn at KR Market to handpick fresh roses and marigolds. Going digital eliminated her daily operational frictions, like scrambling for exact change or tallying cash by hand, while instant, multilingual payment alerts from the SmartSpeaker ensured a Tamil-speaking customer and a Kannada-speaking vendor never lost a moment to miscommunication. Over time, because she used digital payments every day, she built a solid, verifiable financial record. When the time came to expand her stall, she didn't have to navigate a maze of traditional loan paperwork. Encouraged by fellow merchants who vouched for its safety and ease, this digital payment history was all she needed to secure a hassle-free loan through PhonePe. This was the exact moment digital payments turned from a simple tool into a real path for growth. While offline digital payments transformed daily operations for traditional store owners like Devi Rani, PhonePe has now gone further to cater to online-first businesses. The same story of powering MSMEs is now giving rise to digital-native enterprises expanding far beyond their local roots. An inspiring example is Ashirbad, who runs Karukrit Art and Craft Emporium in Shantiniketan. Ashirbad sources handcrafted creations from local artisans, giving them a platform and a steady livelihood. Wanting to take these exquisite handicrafts to art lovers far beyond his physical store, he took Karukrit online, calling it Indocraft. By accepting payments via the PhonePe Payment Gateway, Ashirbad has now expanded his business from a local Tier-3 city emporium into a nationwide brand, empowering rural artisans while seamlessly accepting secure payments from customers across India. Building for what comes next. As merchants like Devi Rani and Ashirbad continue to grow, the ecosystem around them is growing too. For businesses moving online, newer checkout tools offer the same ease shopkeepers expect offline, reducing the number of customers who drop off midway through a purchase. Even for consumers, PhonePe now offers access to credit on UPI, giving them a pre-approved line of credit for everyday purchases. This in turn helps local shops see steadier footfall. Technology is also helping small businesses build a digital identity of their own. Tools like SmartPages, an AI-powered payment page creator, built natively into the PhonePe Payment Gateway dashboard, let a merchant create a professional online profile within minutes, list products, take orders, and reach customers beyond their neighbourhood, without hiring a developer to code. Financial inclusion in Bharat is a long-term commitment. Supporting India's MSMEs is not a one-time effort, it is a continuous commitment to building an ecosystem where businesses of all sizes can thrive. From a neighborhood tailor taking their first digital payment to an expanding retailer setting up a digital storefront, PhonePe has purpose-built its solutions to meet the needs of every kind of merchant. For PhonePe, financial inclusion is never just a single milestone, it is a full-lifecycle partnership. By bridging the gap between everyday transactions and access to structured capital, PhonePe will continue to strive to empower Bharat's merchants. As ET Edge Insights look ahead, its mission remains clear: to stay by the merchant's side through every phase of their financial journey, ensuring they have the right tools, timely credit, and lasting confidence to grow on their own terms. Disclaimer: The views expressed in this article are those of the author/authors and do not necessarily reflect the views of ET Edge Insights, its management, or its members.

PhonePe Appstore hits 200 million devices: adds digital goods. PhonePe has rebranded Indus Appstore as PhonePe Appstore, reaching over 200 million devices. The platform is adding gift cards, gaming top-ups and digital products, while a new website lets users browse and buy without downloading the app. Published on: 28 Oct 2026, 9:30 am Updated on: 28 Oct 2026, 9:30 am PhonePe has renamed Indus Appstore as PhonePe Appstore, which is now available on more than 200 million devices as the company expands into digital goods commerce. Announced on October 28, 2026, the rebrand strengthens the Bengaluru-based company's push to connect app discovery with payments. The platform will retain its apps and games while adding gift cards, digital top-ups and category-based offers. PhonePe is also launching phonepeappstore.com, allowing users to browse and purchase digital products through desktop or mobile browsers. The web store removes the need to download a separate marketplace app for browsing and buying supported products. PhonePe aims to use its payments infrastructure to simplify digital purchases and create more earning opportunities for developers. A wider reach across India. PhonePe Appstore reports a presence on more than 200 million devices, largely through partnerships with smartphone manufacturers. This figure represents its device footprint, not monthly active users or completed purchases. Uttar Pradesh, Maharashtra, Bihar, Karnataka and Telangana lead adoption across the country. The catalogue includes apps such as ChatGPT, Duolingo, ShareChat and Sony LIV, alongside games including Honor of Kings and Hitwicket. Social, action and simulation titles rank among its leading gaming categories. The expanded marketplace aims to build a broader digital commerce business on this existing distribution network. Developers get more monetization options. PhonePe says the rebrand brings its brand recognition and payments ecosystem closer to app developers. Priya Narasimhan, chief business officer at PhonePe Appstore, highlighted new revenue opportunities beyond app discovery. "Developers can look beyond simple app discovery and unlock new ways to earn, including ads, gift cards, and top-ups," Narasimhan said. The company plans to introduce digital top-ups for in-game currencies, character skins, dating app boosts and technology services. Gaming top-ups are expected to arrive first, creating another purchase channel within the marketplace. The rebrand positions PhonePe Appstore as more than an app distribution platform. By combining discovery, payments and digital products, PhonePe is seeking a larger role in India's digital spending market.

PhonePe launches Tatkal NPS, lets users open pension accounts with ₹250. The new facility allows users to open government-backed NPS accounts digitally with contributions starting at Rs 250, using existing bank KYC details and one-time OTP authentication. PhonePe has launched Tatkal NPS, allowing users to open digital pension accounts with a minimum contribution of ₹250. Walmart-owned fintech firm PhonePe said it had launched 'Tatkal NPS' (National Pension System) on its platform, partnering with prominent banking institutions to democratise long-term retirement planning. Expanding its comprehensive financial services suite, this offering enables millions of users across India to open a government-backed pension account with a minimum contribution of Rs 250. With this launch, users can now securely create their NPS accounts through an intuitive, 100 per cent digital process. This would help eliminate barriers to opening a pension account. To deliver this frictionless experience, PhonePe has integrated with India's leading banking institutions, with plans to expand coverage across the banking sector. The Tatkal NPS facility, an innovation developed by the Pension Fund Regulatory and Development Authority (PFRDA), enables the seamless reuse of existing bank KYC details through secure, one-time OTP authentication. This framework enables PhonePe to provide its users with an effortless, paperless onboarding experience, allowing them to create their Permanent Retirement Account Number (PRAN) in minutes. Tatkal NPS caters to a nationwide audience, including first-time planners, millennials and Gen Z. By lowering the investment threshold to Rs 250, PhonePe is tapping into India's positive demographic dividend and enabling this population cohort to start building their pension and retirement security from an early stage. Specifically, this offering serves as a crucial, disciplined retirement vehicle for cohorts such as gig economy workers, independent freelancers and small business owners, who often lack access to mandatory corporate retirement schemes. Deep Agrawal, vice-president and head of payments at PhonePe, said the development marked a significant milestone in bringing long-term financial planning and retirement security to the masses. "By simplifying the process into a seamless, 100 per cent digital journey and partnering with banks, we are making regulated retirement planning accessible to the heart of Bharat with absolute confidence."