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PhonePe wallet to bank account: how to transfer money from PhonePe wallet to bank account and more

PhonePe is one of the most popular digital wallet platforms in India, which was established in 2015. According to the PhonePe Pulse website, PhonePe has 32.84 crore registered users till Q3 2021 and a total of over 2,000 crore transactions done on the platform till Q3 2021. Of these, peer-to-peer payments amounted to 221.56 crore transactions. Pretty safe to assume that most users have money lying in their PhonePe wallet.

Also read: How to delete PhonePe account: steps to delete PhonePe account, unlink bank accounts, and more

What if you need urgent cash and the merchant doesn’t accept PhonePe transactions? While PhonePe didn’t allow transferring wallet amount to a bank in the past, users can easily do so now. However, they need to have completed the KYC process on the platform to be able to use this feature. Here’s everything you need to know about PhonePe Wallet and transferring the PhonePe wallet amount to a bank account.

PhonePe users can easily transfer their wallet amount to a bank account

PhonePe users can easily transfer their wallet amount to a bank account

What is a PhonePe Wallet?

According to the official website, PhonePe Wallet is, “A semi-closed prepaid instrument issued by PhonePe as per the rules and procedures defined by Reserve Bank of India (“RBI”) and shall refer to Minimum details Prepaid Instrument and KYC Compliance Prepaid Instrument, unless specified.” In essence, a PhonePe wallet is a digital tool that lets users top-up balance to make payments to merchants, peers, and other such parties. PhonePe has also introduced an auto top-up wallet feature, which requires a one-time UPI e-mandate to top-up the PhonePe wallet balance every time it goes low. Therefore, users can continue making payments from their PhonePe wallet without having to worry about the balance.

How to use PhonePe Wallet money?

PhonePe users can use the wallet to do a quick recharge, pay bills, book movie tickets, and pay at shops, among others. Users can head to the PhonePe app and select services displayed on the home screen to pay from their wallet easily. However, before using the wallet, users will need to top-up their wallet balance, and here’s how they can do it.

  1. Head to the PhonePe app on your Android or iOS smartphone
  2. Complete the OTP verification to log in
  3. Click on the Profile icon in the top-left corner
  4. Tap on the Top-up button next to the PhonePe Wallet option
  5. Enter the amount you wish to top-up with
  6. Proceed to complete the transaction and click Confirm

Bear in mind that your PhonePe wallet will be deactivated initially, You’ll need to complete KYC and add some balance to activate it. Once done, you can scan QR codes at shops to make payments and options within the app to pay bills and do recharge, among others.

Also read: How to complete PhonePe KYC on your smartphone in a few easy steps

How to transfer money from a PhonePe wallet to a bank account?

PhonePe has added a very convenient method to transfer money from the wallet to the bank account. Needless to say, you need to complete KYC on the app to be able to do so. If you have already completed the KYC process, follow the steps below to transfer money from the PhonePe wallet to the bank account.

  1. Open PhonePe app on your phone
  2. Go to My Money section
  3. Head to PhonePe wallet in the Wallets/Gift Voucher section
  4. Tap on the Withdrawal tab
  5. Drag the wallet icon down and drop it on the bank icon

You’ll need to add a bank account on PhonePe for a successful transfer. Once you add the bank account, the money transfer will go to the primary linked bank account. Moreover, bear in mind that the cashback balance cannot be withdrawn from the PhonePe wallet.

PhonePe Wallet add money offers

PhonePe is offering flat Rs 100 cashback on the first automatic wallet top. Users will need to enable automatic top-up to avail of this offer. Once enabled, the cashback offer will be automatically applied to eligible payments. The offer is valid till October 31st, 2021, midnight. The offer is available to select users only.

How to set up PhonePe Wallet auto top-up?

Setting up automatic top-up on PhonePe Wallet is a straight-forward process. Follow the steps below to set it up.

  1. Head to the PhonePe app on your Android or iOS smartphone
  2. Complete the OTP verification to log in
  3. Click on the Profile icon in the top-left corner
  4. Tap on Top-up under the Payment Methods section
  5. Enter an amount less than Rs 500 and click on Topup Wallet
  6. Enter your preferred wallet auto top-up amount
  7. Select your preferred bank account
  8. Tap on Topup & set Auto Top-up
  9. Enter your UPI pin
  10. Your automatic wallet top-up is now active

Once you have set up your automatic top-up, the wallet will be topped up automatically with the specified amount once the balance goes below Rs 200. Users can check their auto top-up settings from Profile icon>Payment settings>PhonePe Wallet>AutoPay settings.

Is KYC required for PhonePe wallet?

If you are paying directly using UPI or a credit/debit card on the PhonePe app, KYC is not required. However, as per the RBI guidelines, KYC is mandatory to be able to PhonePe Wallet. Users are required details of at least one government-issue ID like PAN card, passport, NREGA job card, voter id card, and driving license.

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Abhiman Biswas

Abhiman has over 8 years of experience in content development. He is a Senior Writer and Social Media Manager at Pricebaba. He covers technology news, feature articles, and tech reviews, apart from managing the official Facebook and Instagram handles. Despite a degree in marketing, his love for latest gadgets and technology steered him towards consumer technology coverage.