PhonePe bets on merchant push as MDR returns

PhonePe will hire more than 20,000 frontline sales personnel on its own rolls and deploy over 5 million payment devices over the next 12 months as it steps up merchant expansion across India, particularly in smaller towns and rural areas, following the introduction of a merchant discount rate (MDR) on specified UPI transactions.

Around 50% of the devices, which include SmartSpeakers and point-of-sale (PoS) machines, will be placed in rural India, including tier-6 towns, the company said in a statement on Thursday. The new sales force will sign up merchants in smaller towns and villages, complete their KYC, install payment devices and provide ongoing support.