PayPhi

PayPhi is the flagship omnichannel payments platform of Phi Commerce, a fintech innovator focused on enabling seamless digital transactions across online, in-store, and doorstep channels. The company operates at the intersection of financial technology and enterprise payments, serving a diverse set of industries including retail, e-commerce, utilities, telecom, education, logistics, and travel. A key differentiator is PayPhi’s ability to digitize traditionally cash-heavy sectors, such as cash-on-delivery (CoD) for e-commerce and doorstep collections for utilities, by providing solutions that work even in low-connectivity environments.

Core Products and Services

• Omnichannel Payment Gateway: Enables businesses to accept payments online, in-store, and at the doorstep, supporting cards, UPI, wallets, net-banking, Aadhaar, BharatQR, and more.

• API-First Digital Enablement Suite: Seamlessly integrates with merchant and enterprise systems, supporting invoicing, collections, payouts, and reconciliation across all channels.

• Doorstep Payments & e-COD: Empowers delivery agents to collect digital payments at customer locations, even without mobile internet, through dynamic payment links and QR codes.

• Subscription and Recurring Payments: Facilitates automated billing for utilities, education, and subscription-based businesses, with support for NACH, UPI AutoPay, and card mandates.

• Tokenization & Security: Advanced security features including tokenization, encryption, and fraud detection, ensuring compliance with global standards.

• Value-Added Services: Includes split payments, lending enablement, payment-linked campaigns, and analytics for merchants and financial institutions.

Business Model & Revenue Streams

• Transaction Commissions: The primary revenue driver is commissions on gross merchant value (GMV) settlements, accounting for 90% of operating revenue in FY24 (₹72.3 crore out of ₹81.2 crore).

• Technology Infrastructure Fees: Charges for API integrations, platform usage, and value-added services such as reconciliation and analytics.

• Interest Income: Earnings from fixed deposits and non-current investments contributed ₹3.4 crore to total revenue in FY24.

• Customer Segmentation: PayPhi’s client base is almost entirely B2B, serving mid-to-large enterprises, banks, and payment networks. The company has onboarded approximately 1,200 institutions and built a network of 16,000 merchants, with a strong presence in sectors like fuel, telecom, utilities, and e-commerce.

• Geographic and Business Unit Contribution: While India remains the core market, PayPhi’s platform is designed for scalability and international deployment, with recent contracts in airport management and partnerships with top private sector banks.

Top Clients & Partnerships

• Major Enterprise Clients: CEAT (B2B distributor network payments), Aditya Birla Capital (Payment Lounge for merchants), and leading educational institutions leveraging PayPhi’s virtual account solutions.

• Banking Partners: Collaborations with the top three private sector banks in India, as well as the National Payments Corporation of India (NPCI), enable direct integration with UPI and card networks.

• Sectoral Reach: PayPhi powers payment operations for Bengaluru International Airport, manages fee payments for large government LPG distributors, and supports payment collections for utilities and telecoms.

Future Outlook & Strategic Priorities

• Growth Drivers: Continued rollout of omnichannel payment solutions, expansion into new verticals (such as government services and logistics), and international market entry are key priorities. 

• Risks and Headwinds: Regulatory changes in digital payments, rising competition from global and domestic payment aggregators, and the challenge of balancing rapid growth with profitability remain top concerns. 

• Management Targets & Capital Allocation: The leadership team is focused on scaling the platform to process higher transaction volumes, deepening partnerships with banks and enterprises, and maintaining robust security and compliance standards.