Blur layer in photoshop

I have this image in photo shop where the background is one layer and the phone and hand is the 2nd layer. So there are two layers.

Here is the photo

Right now the hand and phone look kinda of like separate from the background, I want it to be more smooth around the edges, I tried using feather but this didn't work. Any tips or a way to make it look more smooth would be great.

Thanks for the help. :)