With the launch of the Digital India initiative, people have gradually started trusting and using online payments. In order to quicken the process of digital payments, the government also launched BHIM (Bharat Interface for Money) UPI Application.

However, with the onset of UPI Apps in India, other players also jumped in and overtook this sector to the next level. As of now, Google Pay, PhonePE, and PayTM are dominating the Unified Payment Interface (UPI) Sector. But, did you ever wonder How Google Pay, PayTM, PhonePE, and other UPI Apps Earn Money?

This is a valid question because these apps are bridging the gap between consumers, banks as well as merchants. Apart from that, these apps also offer cashback to users. However, there are many ways through which these apps earn money. Here we are providing you with the details of the same.

How Google Pay, PayTM, PhonePE, and other UPI Apps Earn Money?

The main source of income as of now for these apps is the commission that companies pay to these apps for Mobile, DTH Recharge, and other such services. Earlier, this same commission was paid to the shop owners who were in this business. Remember those long queues out of such shops?

Now people carry out recharges online, as a result, all such recharge shops whose entire families used to rely on this business are gradually shutting down. Did anyone raise a voice for them?

Besides that, there is a specific set of expertise in all these UPI Apps. Below enlisted are the same:

E-Commerce Shops

The E-Commerce option is the expertise of PayTM. There is also a shopping option available within the app itself. Therefore, users can browse through the different categories of the product and buy whatever goods they wish to buy. These UPI Apps charge a commission from these sellers, logistics, and delivery companies and earn money through these mediums.

Recharge and Bill Payments

This is another good source of income for the UPI Apps. These applications provide a decent cashback to the users initially for carrying out the mobile recharge. Besides that, they also update the users whenever their recharge is about to exhaust.

Hence, increasing the tendency of the user to recharge again from the same UPI App. Such notifications serve the purpose of remarketing for these apps. Hence, the engagement of the client increases gradually.


In order to increase the number of transactions, the UPI Apps are also having tie-ups with Government Bodies, Banks, Finance Services & Insurance Companies, Movie Theatres, and Other such Companies into collaborations. As a result, they get some amount of commission if the money is paid through these apps.

Besides that, the other apps get an opportunity to showcase themselves on the UPI Apps. This will serve the purpose of advertisement of both the apps on each other’s platforms.

These are some of the ways of earning money for UPI applications. Do you know about some more ways? Please let us know in the comments.