Are you a heavy user of gift card feature on PhonePe app? If yes, then you might run in this error, “you cannot use your gift card balance for this payment due to security reasons. Please try with a different payment mode.”
Everything has a limit and so does PhonePe. Even if you have done full KYC, there is a limit to what you can spend on PhonePe. The per day limit is 25000 rupees and this limit is same for month as well.
This means monthly limit is 25000 rupees as well. In an entire year, you can spend 3L in gift card money.
Fortunately, unlike Amazon gift cards, there is no transaction limit, unless you are paying more than 25000 rupees in one go. In other words, if you get a bill of 15,000, you will not be able to pay using Amazon gift card since the transaction limit is 10,000 but in case of PhonePe, you can pay upto 25000 rupees bill.
That said, in aforementioned case, you will exhaust your gift card monthly limit in one go, so be careful.