PhonePe to Deploy 5 Million Devices Across Rural India

PhonePe announced plans on Thursday to expand its digital payment infrastructure and merchant network across rural India, specifically targeting Tier 6 towns and villages. The company intends to hire more than 20,000 on-roll frontline sales personnel over the next 12 months to support the rollout.

As part of the initiative, the company will deploy over 50 lakh payment devices, including SmartSpeakers and POS devices, with approximately 50 percent of the hardware designated for rural areas. This expansion is supported by a new Merchant Discount Rate framework that allocates 5 percent of collected MDR to a dedicated fund for small merchant growth. Updated labor codes are also being used to streamline the hiring process.

The initiative aims to integrate small merchants into the formal financial ecosystem by facilitating KYC compliance and increasing visibility into business activity. PhonePe expects these improvements to help small-scale merchants access credit from lending institutions.