New Delhi, Sep 24: India’s digital payments story is increasingly moving beyond big cities, with smaller towns and rural markets emerging as an important part of the next phase of growth. Against this backdrop, PhonePe has announced plans to add more than 20,000 on-roll sales employees and deploy over 50 lakh payment devices across the country over the next 12 months.

Around half of the new payment devices are expected to be deployed in rural India, including deeper markets and smaller towns. The expansion is expected to include devices such as SmartSpeakers and point-of-sale machines, giving local merchants more options to accept and manage digital payments.

The hiring programme also brings an employment dimension to the expansion. A larger on-ground workforce will be needed to connect with merchants, support onboarding, install devices and provide assistance after deployment. This creates opportunities for frontline sales and merchant-service roles in smaller cities and rural areas.

For local businesses, the spread of digital payment infrastructure can make everyday transactions more convenient while reducing dependence on cash. Small retailers, neighbourhood stores, traders and service providers can increasingly participate in the organised digital economy as payment acceptance becomes easier.

The expansion comes at a time when the merchant side of India’s digital ecosystem has already grown significantly. PhonePe said it crossed 50 million registered merchants in April 2026, with its network covering more than 98 per cent of India’s postal codes.

The company’s existing merchant infrastructure also shows how important physical payment devices and on-ground teams have become. Its investor filing reported more than 9 million payment devices deployed by September 2025 and an on-ground sales force of more than 25,000 people at that time.

The rural expansion is also taking place as India’s digital payments ecosystem enters a new phase. Changes to the economics of eligible higher-value merchant UPI transactions are expected from October 15, while consumers will continue to have access to UPI without a direct transaction charge under the new framework.

Beyond payments, a wider digital merchant network could create opportunities for other financial services, including business-focused products, subject to customer eligibility and regulatory requirements. Digital transaction histories can also help businesses participate more easily in formal financial channels.

For India’s rural economy, the significance of this expansion goes beyond the number of devices being installed. More digital payment infrastructure means greater demand for sales, servicing, logistics and technology support, while giving small businesses easier access to the country’s rapidly expanding digital commerce ecosystem.

The development highlights a broader trend in India’s economy: the next wave of digital growth is increasingly being built in smaller towns and villages, where technology, employment and local commerce are coming together.