India’s UPI payments giant, PhonePe, has reduced its customer support staff by 60% over the past five years. According to the company’s latest annual report filed on October 21, the fintech firm has decreased its support team from around 1,100 agents to just over 400 as part of a strategic move towards AI-powered solutions. During this period, PhonePe recorded an impressive 40-fold increase in transactions from FY19 to FY24, reflecting its rapid growth and the increasing reliance on automation to enhance operational efficiency.
The company highlighted its resilience in navigating external challenges, such as the Zero Merchant Discount Rate (MDR) law and the COVID-19 pandemic, which reshaped the business landscape. PhonePe attributed its ability to achieve profitability to a strong focus on process automation and unit economics. Despite significant cost reductions, customer satisfaction has only improved, as evidenced by a consistent rise in its Net Promoter Score (NPS) over the past five years.
PhonePe further stated that its technological advancements have created over 22,000 jobs across India. The company currently employs more than 1,500 of India’s top engineers who are developing innovative solutions to support the country’s booming digital payments ecosystem. Artificial intelligence (AI) has played a crucial role in enabling PhonePe to streamline operations that previously required human intervention. Nick Bunker, an economist at the Indeed Hiring Lab, noted that while AI is set to impact jobs across various sectors, it is unlikely to trigger mass unemployment. Historical evidence suggests that major technological advancements do not lead to widespread job losses, as technology often eliminates certain roles while simultaneously creating new opportunities.
