In this blog, we will learn how to integrate PhonePe Payment Gateway in Laravel step-by-step using APIs.

• PhonePe Payment Flow
• Laravel API Integration
• Create Payment Request
• Redirect Users to PhonePe
• Verify Payment Status
• Handle Callback & Response

Why Use PhonePe in Laravel?

PhonePe is widely used across India and supports multiple payment methods. It is known for fast UPI transactions and a smooth checkout experience.

PhonePe Payment Flow

Step 1: Create PhonePe Merchant Account

Step 2: Configure Laravel Environment

Add PhonePe credentials inside your .env file.

PHONEPE_MERCHANT_ID=YOUR_MERCHANT_ID
PHONEPE_SALT_KEY=YOUR_SALT_KEY
PHONEPE_SALT_INDEX=1
PHONEPE_ENV=UAT

Step 3: Create Payment Route

Route::post('/phonepe/pay', [PhonePeController::class, 'pay']);
Route::get('/phonepe/callback', [PhonePeController::class, 'callback']);

Step 4: Create Payment Request

In this step, Laravel sends payment details to PhonePe API.

public function pay(Request $request)
{
    $merchantId = env('PHONEPE_MERCHANT_ID');

    $data = [
        "merchantId" => $merchantId,
        "merchantTransactionId" => uniqid(),
        "merchantUserId" => "USER123",
        "amount" => 10000,
        "redirectUrl" => url('/phonepe/callback'),
        "redirectMode" => "POST",
        "callbackUrl" => url('/phonepe/callback'),
        "mobileNumber" => "9999999999",

        "paymentInstrument" => [
            "type" => "PAY_PAGE"
        ]
    ];

    $encode = base64_encode(json_encode($data));

    $saltKey = env('PHONEPE_SALT_KEY');
    $saltIndex = env('PHONEPE_SALT_INDEX');

    $string = $encode . "/pg/v1/pay" . $saltKey;

    $sha256 = hash('sha256', $string);

    $finalXHeader = $sha256 . '###' . $saltIndex;

    $response = Http::withHeaders([
        'Content-Type' => 'application/json',
        'X-VERIFY' => $finalXHeader
    ])->post('https://api-preprod.phonepe.com/apis/pg-sandbox/pg/v1/pay', [

        'request' => $encode

    ]);

    $responseData = $response->json();

    return redirect(
        $responseData['data']['instrumentResponse']['redirectInfo']['url']
    );
}

Understanding Amount Format

Step 5: Verify Payment Status

After payment completion, always verify the transaction using PhonePe status API. Never trust frontend success response directly.

public function callback(Request $request)
{
    $merchantId = env('PHONEPE_MERCHANT_ID');

    $transactionId = $request->transactionId;

    $saltKey = env('PHONEPE_SALT_KEY');

    $saltIndex = env('PHONEPE_SALT_INDEX');

    $string = "/pg/v1/status/" . $merchantId . "/" . $transactionId . $saltKey;

    $sha256 = hash('sha256', $string);

    $xVerify = $sha256 . '###' . $saltIndex;

    $response = Http::withHeaders([
        'Content-Type' => 'application/json',
        'X-VERIFY' => $xVerify,
        'X-MERCHANT-ID' => $merchantId
    ])->get(
        "https://api-preprod.phonepe.com/apis/pg-sandbox/pg/v1/status/$merchantId/$transactionId"
    );

    $result = $response->json();

    if($result['success'] == true)
    {
        // Payment Success
    }
    else
    {
        // Payment Failed
    }
}

Important Security Tips

• Always verify payment status from backend
• Store transaction IDs in database
• Never trust callback response directly
• Use HTTPS in production
• Log failed API responses

Database Fields You Should Store

Sandbox vs Production Environment

Common Use Cases

• eCommerce websites
• Recharge applications
• Food delivery platforms
• Subscription platforms
• Booking applications
• Marketplace systems

Final Thoughts

PhonePe integration in Laravel is quite simple once you understand the payment flow properly. The most important thing is handling security correctly and verifying every transaction from the backend.

If your application targets Indian users, PhonePe can significantly improve payment success rates because of its strong UPI ecosystem and trusted brand value.

Whether you are building a small startup or a large-scale platform, integrating PhonePe with Laravel can provide a fast, secure, and smooth payment experience for your users.