The National Payments Corporation of India had recently announced a set of new rules to put a transaction limit for each of the particular UPI mobile applications being used by the end-users today. At present, out of all the different third-party UPI mobile applications available in the country today, Google pay, Paytm, Amazon Pay, and PhonePe contribute to over 97% of the overall UPI market share in India. The main idea behind transaction limits for different UPI applications is to reduce the possibility of any one of them dominating the market in the near future.
Before the 30% cap rule was introduced by the NPCI, as far as UPI payments were concerned, the Indian market was dominated by UPI mobile applications including PhonePe and Google pay. However, back in December 2020, the UPI transactions completed on PhonePe surpassed all other UPI applications by a greater margin. Let us discuss all about PhonePe below to understand why it is one of the top choices for users today, for both person-to-person as well as person-to-merchant money transactions.
What Is PhonePe and Its Transaction Limits?
The current demand in the market for digitization in terms of not only the way we communicate with one another but also the way money goes from us to the other person and vice versa is the prime reason behind the growing popularity of UPI mobile applications. PhonePe is one such mobile payment platform that works on the unified payment integration system and allows you to transfer money, recharge your phone bills, the other necessary bills, etc., in just a few quick steps. All you need to do is feed your bank details on the mobile application once to allow direct debit from the bank account when a transaction or transfer needs to be completed.
Similar to other UPI mobile applications, even while using PhonePe, a user needs to be aware of the different transaction limits applicable to their account. The PhonePe transaction limit for an overall amount limit is Rs. 2,00,000. Similar to this, to disburse this transaction limit amount, the PhonePe transaction limit for the number of transactions to be carried out is also capped at 20 transactions at max. Lastly, as part of the additional PhonePe transaction limit, you can request up to a maximum of Rs. 2,000 from the other users at one time. To know more, check out https://blog.cashfree.com/phonepe-transaction-limit-per-day/
Why Should You Use PhonePe?
There are multiple reasons behind the increasing popularity and demand for PhonePe mobile payments in the country today and these advantages add convenience and comfort to the end-users. Let us discuss why you should use PhonePe below.
- The first advantage of using PhonePe is the safety and security it provides in completing payments and money transfers with great ease. The design of this UPI application is such that all users require one-time sync with their bank or card details on the app to enjoy direct debits in the future.
- Another advantage of using the PhonePe mobile app as opposed to other UPI applications is the availability of different local languages available on PhonePe to cater to a larger target audience. Languages like Kannada, Gujrati, Hindi, Tamil, Assamese, Malayalam, and many more.
- The need for urgent payments can arise at any given point of the day and this is why PhonePe is a top choice for users. It comes with 24/7 availability and aids immediate money transactions and transfers. Additionally, as it is highly user-friendly, it makes the process hassle-free to encourage more and more users to come and make use of the UPI mobile application.
- One other benefit of using mobile applications like PhonePe is the added opportunity of earning gifts, discounts, cashback, and rewards, along with completing stress-free transactions through the application.
How To Increase Transaction Limit?
Not many people are aware of it but different UPI applications come with a different transaction limits for certain banks. In simple words, not all banks stick to the same transaction limit. So, if you wish to go beyond the PhonePe transaction limit of Rs. 1 lakh, you can do so by adding another bank account to your PhonePe account based on the transaction limit of a bank, other than the current bank allotted. Therefore, to increase the PhonePe transaction limit, add different bank accounts to your PhonePe account.
Overall, to conclude, with the shift from offline payments to online payments becoming more evident nowadays, mobile applications with UPI like PhonePe are increasing in popularity. The benefits of such contactless payment options are not only beneficial for person-to-person transactions, but also for person-to-merchant transactions as it acts as the necessary third party bridging the two together. Download the app today and add comfort to your daily tasks like paying bills, managing utilities, and much more on one single mobile application.