PhonePe is planning a major expansion of its digital payments network across India’s smaller towns and villages, with plans to hire more than 20,000 frontline sales employees and deploy over 50 lakh payment devices during the next 12 months.
The move is aimed at taking digital payment acceptance deeper into rural India, including Tier 6 towns and underserved markets.
20,000 New Jobs In The Next Year
PhonePe plans to add more than 20,000 sales personnel to its on-roll workforce over the next year.
These employees will be responsible for reaching merchants in smaller towns and villages, helping them complete KYC procedures, installing payment devices and providing ongoing support.
The expansion comes as digital payments continue to spread beyond India’s major cities, creating demand for a larger merchant-facing workforce.
50 Lakh Payment Devices To Be Deployed
Alongside the hiring programme, PhonePe plans to deploy more than 50 lakh payment devices over the next 12 months.
The devices will include SmartSpeakers and point-of-sale machines used by merchants to accept and manage digital payments.
Around 50% of the new devices are expected to be deployed in rural India, with the company specifically targeting Tier 6 towns and deeper rural geographies.
Focus On Small Merchants
PhonePe’s expansion is focused on bringing more small businesses into the formal digital payments ecosystem.
A larger network of digitally active and KYC-compliant merchants can provide greater visibility into business activity and potentially make it easier for eligible businesses to access other formal financial services, including credit.
The company believes that improving payment infrastructure at the local level can help more merchants participate in India’s growing digital economy.
New UPI MDR Framework Supports Expansion
PhonePe has linked the investment to India’s recently introduced merchant discount rate framework for certain UPI transactions.
The company said the new framework allows it to take a longer-term approach towards merchant expansion. A dedicated fund using 5% of the MDR amount collected has also been earmarked for small-merchant expansion.
This is expected to support investment in payment infrastructure in areas where digital payment acceptance remains less developed.
PhonePe Already Has A Massive Merchant Network
PhonePe has built one of India’s largest digital payments networks. As of August 2026, the company said it had more than 72 crore lifetime registered users and over 5 crore registered merchants.
The latest expansion will add another layer to this network by focusing heavily on locations outside India’s largest urban centres.
The combination of new employees and millions of payment devices is expected to significantly increase PhonePe’s physical presence among merchants in smaller towns and villages.
Summary
PhonePe is planning to hire more than 20,000 frontline sales employees and deploy over 50 lakh payment devices across India during the next 12 months. Around half of the devices will target rural areas, including Tier 6 towns. The expansion will focus on merchant onboarding, KYC, payment infrastructure and support as PhonePe pushes digital payments deeper into rural India.
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