PhonePe officially announced on Tuesday, April 28, 2026, that it has surpassed the milestone of 50 million registered merchants. This achievement underscores the company’s aggressive expansion across India, particularly into rural and semi-urban areas.
The milestone arrives at a critical juncture as the Walmart-backed fintech giant prepares for its upcoming Initial Public Offering (IPO), with updated draft papers recently filed with SEBI.
1. Market Penetration and Reach
PhonePe’s merchant network has achieved near-total geographical coverage of the Indian market.
- 98% Postal Code Coverage: The network now spans more than 98% of India’s postal codes, effectively reaching the most remote corners of the country.
- Kirana Dominance: The platform has successfully transitioned millions of small “kirana” stores and street vendors from cash-only operations to the formal digital economy.
- Merchant Engagement: Daily active merchant engagement has seen a sharp rise, reaching over 60% of monthly active users, indicating that the platform has become a core part of daily business operations for millions.
2. Beyond Payments: The “Full-Stack” Evolution
PhonePe has successfully converted its vast payment rails into a diversified revenue engine for merchants.
- Hardware as a Service: The company has deployed over 9 million physical devices, including SmartSpeakers and POS terminals. These devices act as a “sticky” subscription revenue stream.
- Merchant Lending: Leveraging transaction data from its 50 million merchants, PhonePe provides credit insights to partners for collateral-free loans. Loan disbursals saw a massive surge in FY26, reaching record highs.
- Value-Added Services: The PhonePe Business app now enables merchants to manage staff, access real-time settlement information, and avail themselves of insurance products tailored for small businesses.
3. Transaction Dominance
The merchant milestone follows another record-breaking performance in the UPI ecosystem.
- 10 Billion Club: In March 2026, PhonePe became the first UPI app to cross 10 billion transactions in a single month.
- Market Share: It currently holds roughly 46% of total UPI transaction volume and nearly 49% of the total value, maintaining a significant lead over Google Pay and Paytm.
4. Financial Outlook and IPO Prep
The 50-million merchant mark is a key highlight in PhonePe’s updated Draft Red Herring Prospectus (DRHP).
| Metric | FY2025-26 Performance (H1) |
| Operating Revenue | ~₹3,918 Crore (H1 FY26) |
| Registered Users | Over 600 Million |
| Merchant TPV | ~₹15 Trillion (Annualized) |
| Lending Revenue | Significant jump; ~28% of total revenue |