An ultrasound scan generates a huge amount of data. To form an image, this data has to be transferred to the imaging system. This is an issue for applications where the data transfer capacity is limited such as hand-held systems, wireless probes, and miniaturized array probes. Two-stage beamforming methods can be used to significantly reduce the data transfer requirements. In the first stage, which is applied in-probe, the amount of data is reduced from channel to scanline data. In the imaging system, the data are then beamformed to obtain images, which are synthetically focused over the entire image. Currently, two approaches exist for the second stage. The first approach is a time-of-flight (TOF) approach called synthetic aperture sequential beamforming (SASB), which has been developed for both linear and phased arrays. SASB does, however, introduce artifacts in the image that can be reduced by tapering the first-stage scanlines at the cost of lateral resolution. The second approach is based on the wave equation, but a computationally efficient method for phased arrays that is producing sector scan data is lacking. Here, we propose an algorithm that uses the fast Hankel transform to obtain a fast algorithm. The imaging performance of this method is evaluated with simulations and experiments. Compared with PSASB, which is an adaption of SASB for phased arrays, our method requires a similar amount of operations to construct the entire image and there is no tradeoff between resolution and artifacts. These results show the advantage of using the wave equation instead of a TOF approach.