Top 10 Mobile Wallets In India

Brand & Design, E-Commerce | 29 Sep, 2015 | Krithika Ramani

As shopping patterns continue to evolve, so does the Payment Platform And Payment Gateway Industry that
propels the former. Mobile Point Of Sales Machines have of course existed for a long time. Mobile wallet is a
new concept in India that has been surpassing credit card usage and is slowly beginning to replace the traditional
payment methods.
A mobile wallet, in simple terms, is a virtual mobile-based wallet where one can store cash for making mobile,
online or offline payments. There are various types of mobile wallets in India, such as open, semi-open, semi-
closed and closed – depending on the type of usage and payments that can be made. Wallets are growing rapidly
as they help in Increasing The Speed Of Transaction, Especially For Ecommerce Companies and all Ecommerce
Marketplaces have integrated with such mobile wallets too.
Here are some of the top 10 mobile wallet companies in India and what they offer to their customers.
1. PayTM
PayTM is one of the largest mobile commerce platforms in India, offering its customers a digital wallet to store
money and make quick payments.
Launched in 2010, PayTM works on a semi-closed model and has a mobile market, where a customer can load
money and make payments to merchants who have operational tie-ups with the company. Apart from making e-
commerce transactions, PayTM wallet can also be used to make bill payments, transfer money and avail services
from merchants from travel, entertainment and retail industry.
Capitalizing on the scope and growth of India’s education market segment, they recently partnered with premium
educational institutions in India to introduce cashless payments for fees, bills and other expenses.
Number of installs: 1,000,000+
2. Momoe
Momoe is a Bengaluru based mobile payments startup that focuses on changing how customers pay while eating
out, travel and shop. Using the Momoe app, one can store their credit card details and make mobile payments at
various restaurants, grocery stores, apparel, salons and other retail outlets.

The app’s initial foray was into restaurants which attracted many installs due to the ease of payment options.
The users were able to see live tabs, split bills and pay directly, without having to wait for a physical bill to
arrive. Even though its services are currently available only in Bangalore, due to the growing popularity of the
app and investment funds they will soon be expanding their services to six new cities.
Number of installs: 100,000+
3. PayUMoney
PayUMoney, a Gurgaon-based company that provides online payment solutions launched its wallet service last
year. This e-wallet by PayUMoney enables the user to store cash and pay for various services and transactions.
In order to differentiate themselves from other players, they provide a wide range of benefits that include one-
touch check out and discounts / cashback offers on every transaction made. This e-wallet also provides instant
refunds on order cancellations and buyer protect to ensure the right purchase and customer satisfaction.
Number of installs: 100,000+
4. Mobikwik
MobiKwik is an independent mobile payment network that supposedly connects 25 million users with 50,000
retailers and more. This mobile wallet lets its users add money using debit, credit card, net banking and even
doorstep cash collection service, which can in turn be used to recharge, pay utility bills and shop at marketplaces.
Owing to the growing need for convenience, MobiKwik has also recently tied up with large and small time
grocery, restaurants and other offline merchants.
Number of installs: 10,000,000+
5. Citrus
Citrus Pay is a popular e-wallet app for cash storage, payments and money transfers. Besides tying up with online
service providers from varied sectors, they are now collaborating with Woohoo, a gifting and shopping portal to
let its customers shop at more than 5000 offline stores listed with them.
Number of installs: 100,000+
6. State Bank Buddy
This mobile wallet application was launched by State Bank of India to let users transfer money to other users
and bank accounts, pay bills, recharge, book for movies, hotels, shopping as well as travel.
This semi-closed prepaid wallet offers its services in 13 languages and is available for non-SBI customers as
well. This app also allows its customers to set reminders for dues, money transfers and view the mini-statement
for the transactions carried out.
Number of installs: 100,000+
7. Citi MasterPass
Citi Bank India and MasterCard recently launched ‘Citi MasterPass’, India’s first global digital wallet for faster
and secure online shopping.

By using this, Citi Bank Debit And Credit Card Customers become the first in this country to be able to shop at
more than 250,000 e-commerce merchants. It ensures faster checkout with a single click or touch and stores all
your credit, debit, prepaid, loyalty cards and shipping details in one place.
8. ICICI Pockets
Pockets by ICICI is a digital bank that offers a mobile wallet for its customers. It provides the convenience of
using any bank account in India to fund your mobile wallet and pay for transactions.
With Pockets, one can transfer money, recharge, book tickets, send gifts and split expenses with friends. This
wallet uses a virtual VISA card that enables its users to transact on any website or mobile application in India
and provides exclusive deals or packages from associated brands.
Number of installs: 1,000,000+
9. HDFC Chillr
Chillr is an instant money transfer app created by HDFC to simplify money transfer and payment process for its
customers.
Using this mobile payment app, one can transfer money to anyone in their phone book, thereby cutting out on
the hassles of adding a beneficiary. It is currently available only for HDFC Bank customers and can be used to
send money, recharge, split bills, request funds or transfer and will soon be able to pay at online & offline stores.
Number of installs: 100,000+
10. LIME
Axis Bank, the third-largest private sector bank launched ‘LIME’, an application that offers a mobile wallet,
payments, shopping and banking facilities.
This mobile wallet is available for both account & non-account holders and lets a user add money using his or
her credit, debit and net banking details. One can also share the wallet with their loved ones or pool in funds into
a shared wallet for a particular purpose (Example: Gifts, vacations, etc.)
Number of installs: 10,000+
Data on digital payments in India
And here are some interesting findings on digital payment adoption from the recent ACI Survey:

While these numbers indicate the growing need for secure, faster and efficient payment methods for online
marketplace, efforts to make payments to individual or brick & mortar stores is also increasing. Start-ups and
huge corporates are constantly on the lookout for customer-friendly technology, thereby giving more power to
the customer.
Thus, the day you will walk around without a physical wallet and pay your local dhobi and kirana store uncle
using a mobile wallet is not so far.

Do you use any of these mobile wallets? Have we missed out on something important? Write to us in the
‘Comments’ section below.

There is no point of discussion that whether online wallet such as PayTM, PayU, Momoe,
Mobikwik, etc are registering some good business or not in the wake of demonetization
of high-value currency notes in the country. With less or no money in our pocket, the only
way left for making any kind of payment is the online wallet startups. If you are thinking
of avoiding such online facilities and heading next to the nearby ATM to withdraw some
cash then two things will affect you most and bound you to revert your idea.

First, the limitation of an amount under which you can withdraw only 2,000 (now it
extended up for 2,500) and the second one is the big crowded line that will take hours of
time to clear. Well, after hours of efforts you are just back to square one. Keeping the
same in mind, every next person in the country nowadays is using such payment methods
as well as many of them have started downloading these facilities/applications into their
smartphones.

Hence, the network of these services has been growing at an exponential rate and so is
the profit of companies rolling out these offers. Here we are making a note of those firms
that are getting benefit from this new implementation of scrapping the old INR 500 and
INR 1000 currency notes. Read will Indian economy be affected by demonetization ?
 1. PayTM:-
Being offered with facilities such as e-commerce transaction, bill payments, money
transfer, entertainment, money storage and quick payment among the others, PayTM has
already become one of the largest and popular online payment wallets in India and now
the bold move against unaccounted money has pushed its growth further as well as
increased the volume of application users.

Going by the reports, PayTM has garnered 700 percent hike in traffic, 300 percent surge
in app downloads and about 1000 percent enhancement in saved money in its wallet
facility till the day and still increasing. With the average number of transactions per
applicant which used to be 2 or 3 in a week, has now gone up to 18 to 20 per week.

A small verbal sparring has also happened between the PayTM’s CEO and Mr. Kejriwal
over an issue of an advertisement made by PayTM to congratulate Mr Narendra Modi on
the move.

2. Momoe:-
This Bengaluru based mobile payment wallet scheme allows users to store their credit
card details to make payments easily at various grocery stores, restaurants,
transportation and other retail outlets. Unlike the other applications like PayTM and
Mobikwik, which facilitate payments with an effective wallet solution but stores a fixed and
limited amount of cash, Momoe gives you the better option by using credit card option.
Along with such features, Momoe has got a tremendous hike in the last few days in terms
of their overall platform traffic as well as the number of card details to the account.

3. PayU Money:-
The central government’s decision to replace the existing higher value notes of INR 500
and INR 1000 with fresh INR 500 and INR 2000 notes has not only chickened out people
who had hidden their illegal money from the government but it has also disquieted the
public as they have their legal earnings in same currency notes. Moreover, it also leaves
the public with no money in their pocket. These changes, however, give a major push to
all the online payment wallet. PayUMoney, which is a Gurgaon based firm that facilitates
online payment solutions has introduced its wallet service recently in the market. One
touch check-out, lucrative discount and cashback schemes on every transaction make it
different from the other payment wallets.
 4. Mobikwik:-
MobiKwik is an independent online payment framework that presumably connects 25
million users along with more than 50,000 retailers. This mobile wallet enables users to
add money using a credit card, debit card, net banking and even doorstep cash collection
service, which can be employed to make payments for their regular expenses. Apart from
these, Mobikwik has also added a cash pick facility for its valuable users for some days.
A consumer can click on ‘cash pick up’ option the Mobikwik app, a spokesperson of the
payment wallet will come to them to exchange INR 500 and INR 1000 notes and will
directly load it into their e-Wallet, thanks to Livemint that has shared such information in
their report. That means you can avoid all the frustration of standing in long queues in
front of the banks and ATMs.

5. Citrus:-
Citrus Payment Solutions application lets you transfer your money as well as cash storage
and payments facility and allows you to go anywhere without carrying cash in your wallet.
All you are going to need is a smartphone and an app and you are far away from all these
above-mentioned troubles. Read more on Online Wallets.
Besides, other online payment wallet framework like State Bank Buddy, City MasterPass,
ICICI Pockets, HDFC Chillr and Lime, are defining themselves by their suggested name.
All the platforms are receiving great success during this cashless situation. Well, all these
cash-related problems are just for the time being and will be resolved, but, the great thing
is it will get a wide range of users towards such services and lead the Digital India
Programme as well.

Regarded as a major steps towards addressing the black money problem in India, the Indian
government’s decision to demonetize the Rs.500 and Rs.1,000 currency note has resulted in
increased use of mobile wallets. With only Rs.100 and lower denominations being accepted, many
are resorting to online banking and online payment mediums to handle their daily expenses. In fact,
since demonetization has come into effect, mobile wallets have witnessed a massive rise in app
downloads. With programs of financial inclusion, digitization of the economy and increased use of
smart phones, online transactions are already quite popular among the urban Indian population.
According to analysts at Technavio, by 2018 the mobile wallet market in India will grow at a CAGR of
140%, while the global mobile wallet market will register a CAGR of 34% by 2020.

Demonetization, mobile wallets and digital India

Until now, digital disconnect has been a major challenge in India, as many have
preferred transacting in cash instead of making use of bank transactions and plastic money. With
demonetization in effect, several digital payment solution providers have created innovative ways to
attract new customers. The result has been mobile wallets like Paytm witnessing 200 percent
increase in app download numbers, and Ola Money seeing a 1,500 percent increase in wallet
recharges. These digital wallets not only help in paying electricity, DTH, and transport bills, but they
also enable payments at nearby mom-and-pop stores that are already registered for these services.
The vision of connecting Indians through digital media has been further encouraged by this move on
the part of the government. The m-wallet (mobile wallet) segment broadly consists of services
related to banking transactions, transfer of money as well as value-added services like bill payments,
shopping, ticketing, etc. Of these services, m-wallets are primarily used for the transferring money,
followed by the payment of bills.

Global mobile phone internet user penetration 2014-2020

Source: Technavio

Until recently, a lack of proper infrastructure was regarded as a major road block for the vision
of Digital India, but with the launch of 4G internet along with the present use of 3G internet and
increased mobile penetration, it seems that, in less than a decade, many Indians will switch to a
digital medium for financial transactions. Mobile as a point of sale (PoS), point of purchase and point
of acceptance have the potential to lessen the digital divide between urban and rural India, along
with drawing the masses into the net of financial inclusion.
In fact, countries like Bangladesh and several countries in Africa are already working towards
making use of mobile phones for the financial inclusion of the masses, through features
like Bkash and M-Pesa. India is poised to witness a major revamp of its economy through the filling in
of current loopholes in the financial system and the channeling of the money market through better
organized mediums.
The way forward
Reducing the volume of cash transactions and resorting to a foolproof medium of financial tracking is
one of the best ways in which the menace of black money can be eradicated. According to
economists, by not integrating the Indian economy with digital media, India will lose the opportunity
to save close to 2% of the GDP, which is around Rs. 2,15,000 crores. With the stakes being so high,
it only makes sense that, going forward, there is a consistent initiative towards educating the masses
on the advantages of switching to digital modes of financial management.

A Cashless Future Is The Real

Goal Of India's Demonetization
Move

Wade Shepard

"This is a public sector innovation unthought of in history. A

cultural-economic revolution in the making!" exclaimed
Monishankar Prasad, a New Delhi-based author and editor,
about India's demonetization initiative and subsequent
drive towards developing a cashless economy.
The biggest problem with India suddenly removing 86% of its
currency from circulation without having an adequate supply
of new notes ready to take their place is that fact that India is
more reliant on cash than almost any other country on earth.
Suddenly, hundreds of millions of people were left without
the means to engage economically, to buy the things they
wanted and needed, and myriad businesses were left
without a readily available mechanism to receive payment
for their goods, to buy supplies, or pay their staff.
Indian customers queue outside a bank on the first monthly pay-day since the a currency ban on large-
denomination notes was announced in Mumbai on December 1, 2016. (INDRANIL MUKHERJEE/AFP/Getty
Images)

India’s demonetization scheme was a unilateral initiative

that was planned in secret — in a back room of Prime Minister
Modi’s home, in fact — by a small group of insiders tied-in
with the upper echelons of India’s government. The strategy
was to instantly nullify all 500 and 1,000 rupee banknotes,
the most common currency denominations in the country,
and then eventually replace them with newly designed, more
secure 500 and 2,000 rupee notes. This endeavor
instantaneously became policy when the prime minister
announced it via a surprise television address at 10:15 PM
on November 8.
One of Modi’s main brands is that of a corruption fighter, and
his demonetization initiative was rushed into effect in an
attempt to catch the black market off guard — which could
potentially lead to a big payday for the central bank if large
amounts of illicit cash wasn’t redeemed. That plan flopped, as
almost all of the recalled notes were officially accounted
for one way or another.
Read more about Modi's demonetization
initiative here, here and here.
But this surprise demonetization also did something else: it
pushed millions of new users onto the country’s digital
economic grid by virtual fiat. Not even the banks were notified
in advance of Modi's plan, and, even with strict exchange limits
that prohibited people from exchanging over $60 worth of rupees
at a time, they simply didn’t have enough of the newly designed
banknotes on-hand to distribute to the masses looking to redeem
their canceled notes. Rather than being a 50 day transition, as the
Indian government projected, it is looking as if it will take four
months to a year before the country's currency supply is restored.
In point, the people of India were left in limbo as the
government cancelled the bulk of their currency without
providing them with the means to obtain the newly printed
notes to replace it. On the surface, this seems as if it was a
matter of gross negligence, but there may have been more to
it than that. As the demonetization process continues,
Modi’s rhetoric is less about fighting corruption and more
about transitioning India to a cashless economy.
Up until this campaign, India was an incredibly cash-centric
economy. Cash accounted for upwards of 95% of all
transactions, 90% of vendors didn’t have card readers or the
means of accepting electronic payments, 85% of workers
were paid in cash, and almost half of the population didn’t
even have bank accounts. Even Uber in India accepted cash
— the only country in the world where this option is
available — and “Cash on Delivery” was the preferred choice
of 70% of all online shoppers.
By temporarily turning off the engines which drove the cash
economy, India hoped that more people could be brought
into the fold by using track-able — and taxable — digital
financing vehicles, like debit cards and e-wallets.
An Axis Bank cashier works at a makeshift ATM counter in the wake of the Indian government's demonetization
move. (SAM PANTHAKY/AFP/Getty Images)

Whether or not India was ready for this cashless revolution

is another question.
“Look, you still have a reasonably large part of the
population that doesn't even have a bank account,”
said Arpan Nangia, the head of the India desk for HSBC’s
commercial banking division. “Yes, our position is that
everybody should have a bank account and everybody
should be transacting through that, but if a large part of
your population doesn't even bank it is going to take some
time for you to invest before you can say let's go completely
cashless.”
However, reservations about the timing of India’s big
cashless push at this point are irrelevant. It’s happening,
ready or not.
India is currently in the middle of an all out movement to
modernize the way things are paid for. New bank accounts
are being opened at a heightened rate, e-payment services
are seeing rapid growth, cash-on-delivery in e-commerce has
crashed, and digitally-focused sectors like the online grocery
business have started booming.
“Even the vegetable vendors on the streets have opened up
Paytm accounts and they have a machine outside their shop
where someone can scan the bar code and make the
payment,” Nangia explained.
“A lot more retail outlets are accepting e-wallets, including
my laundry provider and my dabbawala," Prasad proclaimed.
"This is revolutionary, and survival of the fittest.”
Modi’s demonetization initiative has been a boon for India’s
e-payment providers. Paytm reported a three-times surge in
new users -- tacking on over 14 million new accounts in
November alone. While Oxigen Wallet’s daily average users
increased by 167% since demonetization began.
“Ever since Prime Minister Narendra Modi’s
demonetization announcement, we have suddenly seen a
spike in both app downloads & merchant registrations. This
spike is now coming from all cities, big and small, pan-India,
consisting of small merchants like vegetable
vendors, Kirana shopkeepers [small convenience stores],
street vendors, rickshaw drivers, taxi’s etc., who’ve signed
onto our Oxigen Wallet app for the merchant payments
service,” said Pramod Saxena, the founder and CMD of
Oxigen Services.
Cryptocurrencies like Bitcoin and Asiadigicoin have also
been the recipients of a positive upswing from Modi’s
currency purge — with Bitcoin in particular being driven up in
value.
The lack of cash in the economy combined with the buzz
around electronic payments systems has also sparked some
very innovative solutions. The farmers’ markets of
Telangana began experimenting with their own electronic
payment system where customers with Aadhar-linked bank
accounts could buy vegetables using tokens which could be
purchased via debit cards at specialized kiosks.
“These changes indicate towards a more inclusive society in the
future,” Saxena said. He then outlined several areas in which India
is trying to improve its digital economy, which include simpler,
more technologically advanced digital payment systems, increased
merchant acceptance, improvements in UPI, which allows
monetary transfers between any two bank accounts via a
smartphone, as well as a reduction in cash-based transactions.
“The Prime Minister's move to incentivize digital payments
will offer a strong support to our ongoing efforts in helping
the country leapfrog the cash generation to digital payment
solutions," added Deepak Abbot, the senior vice president of
Paytm. "This will not only help millions of Indians overcome
the hassles of dealing in cash but also act as a significant
step towards propelling India to emerge as a truly cashless
economy.”

Digital Payments in India 2016-2017:

Definition, Types, comparison and Apps
What is Digital Payment?
Digital payment is a way of payment which is made through digital modes. In digital payments,
payer and payee both use digital modes to send and receive money. It is also called electronic
payment. No hard cash is involved in the digital payments. All the transactions in digital
payments are completed online. It is an instant and convenient way to make payments.

If we talk about cash payments, you have to first withdraw cash from your account. Then you
use this cash to pay at shops. Shopkeeper goes to the bank to deposit the cash which he got from
you. This process is time-consuming for you and also for the shopkeeper. But in digital
payments, the money transfers from your account to the shopkeeper’s account immediately. This
process is automatic and neither you nor the shopkeeper is required to visit the bank.

Digital payments save you from long queues of ATMs and banks. Because, if you pay digitally,
you won’t need to withdraw cash from your account. It also lots of time and a little bit money as
well.

Different Types of Digital Payments:

From commonly used cards to newly launched UPI, digital payments has many types of
payment. Some modes meant for tech-savvies and some for less-technical persons. Below are the
different modes of digital payments.

UPI apps
UPI or unified payment interface is a payment mode which is used to make fund transfers
through the mobile app. You can transfer funds between two accounts using UPI apps. You will
have to register for mobile banking to use UPI apps. Currently, this service is only available for
android phone users. Hence you can use UPI only when you have an android phone.

You need to download a UPI app and create a VPA or UPI ID. There are too many good UPI
apps available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe app etc. It is not
mandatory to use the UPI app from your bank to enjoy UPI service. You can download and use
any UPI app.
UPI apps are a faster solution to send money using VPA or even IFSC and account number. But
they have some limitations also. If you do not have an android phone you cannot use UPI app, It
is not for you. Lack of stable internet connection can also cause trouble for these apps.

AEPS
AEPS is an Aadhaar based digital payment mode. The term AEPS stands for Aadhaar Enabled
Payment Service. Customer needs only his or her Aadhaar number to pay to any merchant.
AEPS allows bank to bank transactions. It means the money you pay will be deducted from your
account and credited to the payee’s account directly.

You need to link your Aadhaar number with your bank account to use AEPS. Unlike cards and
USSD, AEPS does not have any charges on transactions. You can use AEPS with the help of
PoS (Point of sale) machines. You can withdraw or deposit cash, send money to another Aadhar
linked account with it. The good thing about AEPS is that it doesn’t need your signature, bank
account details or any password. It uses your fingerprint as a password. No one can forge your
fingerprints, thus it is the most secure digital payment mode.

USSD
USSD banking or *99# Banking is a mobile banking based digital payment mode. You do not
need to have a smartphone or internet connection to use USSD banking. You can easily use it
with any normal feature phone. USSD banking is as easy as checking your mobile balance. You
can use this service for many financial and non-financial operations such as checking balance,
sending money, changing MPIN and getting MMID.

The *99# code works as a bridge between your telecom operator’s server and your bank’s server.
It uses your registered mobile number to connect with your bank account. Hence, dial *99# with
your registered number only. USSD banking has a transaction limit of Rs. 5000 per day per
customer. RBI has also set a maximum charge of Rs. 2.5 per operation.

Read About USSD Banking in Hindi

Cards
Cards are provided by banks to their account holders. These have been the most used digital
payment modes till now. Many of us use cards for transferring funds and making digital
payments. Credit cards, debit cards and prepaid cards are the main types of cards. You can also
use Rupay debit card for digital payments.

Credit cards are issued by banks and some other entities authorized by RBI. These cards give
you the ability to withdraw or use extra money. Credit cards are used for domestic as well as
international payments.
Debit cards are issued by the bank where you have your account. You can use these cards for
the money in your account. The payments you make with these cards debit from your account
and credit immediately to the payee’s account. You can use these cards to make payments to one
bank account to another.

Prepaid cards are another type of cards which you use to pay digitally. You must have to
recharge these cards before using just like prepaid SIM cards.

Cards are one of the best modes when you pay at portals or E-commerce sites. But if we talk
about paying to merchants it is not the most suitable way. It charges 0.75% – 2.0% on
transactions. Also, you cannot use cards to pay if the merchant does not have a PoS (swipe)
machine.

E-Wallets
E-wallet or mobile wallet is the digital version of your physical wallet with more functionality.
You can keep your money in an E-wallet and use it when needed. Use the E-wallets to recharge
your phone, pay at various places and send money to your friends. If you have a smartphone and
a stable internet connection, you can use E-wallets to make payments. These E-Wallets also give
additional cashback offers. Some of the most used E-wallets are State bank buddy, ICICI
Pockets, Freecharge, Paytm etc.

E-Wallets are an easy and faster way to make payments but have some limitations. These apps
are good if you send money to a wallet to another. But if you want to send money to a bank
account these apps are not suitable. Also, you have to be extra careful with these apps. These
apps do not ask for any PIN or password when you perform a transaction using your wallet
money. If you do not lock your phone, anyone can use the money in your wallet. I suggest you
must lock your phone if you want to use E-Wallet apps.

Advantages of Digital Payments

Easy and convenient: Digital payments are easy and convenient . You do not need to take loads
of cash with you. All you need is your mobile phone or Aadhaar number or a card to pay. UPI
apps and E-Wallets made digital payments easier.

Pay or send money from anywhere: With digital payment modes, you can pay from anywhere
anytime. Suppose your close friend’s mother fell ill at night. He called you at midnight and asked
some money. Don’t worry, you can send money to your friend using digital payment modes such
as UPI apps, USSD or E-Wallets.

Discounts from taxes: Government has announced many discounts to encourage digital
payments. If you use digital modes to make a payment up to Rs. 2000, you get full exemption
from service tax. You also get 0.75% discounts on fuels and 10% discount on insurance
premiums of government insurers.

Written record: You often forget to note down your cash spendings. Or even if you note, it
takes a lot of time. But you do not need to note your spendings every time with digital payments.
These are automatically recorded in your passbook or inside your E-Wallet app. This helps to
maintain your record, track your spendings and budget planning.

Less Risk: Digital payments have less risk if you use them wisely. If you lose your mobile
phone or debit/credit card or Aadhar card you don’t have to worry a lot. No one can use your
money without MPIN, PIN or your fingerprint in the case of Aadhar. But it is advised that you
should get your card blocked if you lost it. Also call the helpline of your E-wallet to suspend the
wallet account to prevent anyone from using your wallet money.

Drawbacks of Digital Payments:

Every coin has two sides so as the digital payments. Despite many advantages, digital payments
have a few drawbacks also.

Difficult for a non-technical person: As most of the digital payment modes are based on
mobile phone, the internet and cards. These modes are somewhat difficult for non-technical
persons such as farmers, workers etc.

The risk of data theft: There is a big risk of data theft associated with the digital payment.
Hackers can hack the servers of the bank or the E-Wallet you are using and easily get your
personal information. They can use this information to steal money from your account.

Overspending: You keep limited cash in your physical wallet. Hence, you think twice before
buying anything. But if you use digital payment modes, you have all your money with you
always. This can result in overspending .

Future of Digital Payments:

The future of digital payments is very bright. India is experiencing a remarkable growth in digital
payments. In 2015-16, a total of Rs. 4018 billion transacted through mobile banking as compared
to Rs. 60 billion in 2012-13. The percentage of the digital payments through other modes is also
increasing in a significant speed.

There are many factors which are affecting the future of digital payments.
Digital revolution
Digital revolution has provided an easy way to go for digital payments. India has more than 100
crore active mobile connections and more than 22 crore smartphone users as of March 2016.
This number is going to increase further with a faster internet speed. The reach of mobile
network, Internet and electricity is also expanding digital payments to remote areas. This will
surely increase the number of digital payments.

Government’s support
The government is supporting digital payments a lot. It has reduced some taxes and announced
incentives for digital payments. It has launched Lucky Grahak Yojna for customers and Digi
Dhan Vyapar Yojna for shopkeepers. You can get cash prizes up to 1 crore if you pay digitally.
Due to these incentives and waivers, more people are showing interest in digital payments.

Convenient way to pay

Digital payments are more convenient than cash payments. You do not need to carry a lot of cash
with you all the time. You can make digital payments in seconds. The change is not a concern
with digital payments when you can pay the exact amount. You will also have all your payments
recorded automatically. We all love simplicity and ease. Hence, we can say that Digital
payments is the future of fund transfer and money transactions.

More To Read
What is UPI

UPI Benefits

UPI 2.0

VPA

Apps

FAQ

SBI UPI App

BHIM App

ICICI Bank App

HDFC UPI App

PNB UPI App

BOB UPI App

यययययय यय
PhonePe App

AEPS

USSD Banking

Lucky Grahak Yojana

Digi-यय Vyapar Yojana

Filed Under: UPI Basic

11 Benefits of UPI | How UPI is Better Method of Fund Transfer !
The new way of money transfer, The UPI has many benefits over the existing payment
methods. Because of its obvious benefits, the experts consider it a revolutionary
innovation. In RBI governor Raghuram Rajan's word, The UPI is whatsapp moment for
banking. UPI is one of the most advanced method among all the digital payments. The
UPI is a payment … Read More

11 Benefits of UPI
1. Cheapest Way of Money Transfer

The UPI is the cheapest method of fund transfer. The NEFT charges
minimum Rs 2.5 for a transfer, the IMPS charges minimum Rs 5. But
the UPI charges too less to believe. It costs less than 50 paise for a
transaction through the UPI.

Becuase of this low cost, the UPI has the potential to promote the non
cash transactions of small amounts.

2. It Makes you Free from Cash

There are many ways of transactions which has decreased the cash
transactions. The card payment, net banking and mobile wallets are
widely used. However, we rarely use the card or netbanking for small
transactions such as payment to your neighborhood grocery or
payment to a vegetable vendor. In fact, it is not feasible for the
consumer as well as the shopkeeper.
But, the UPI makes small transactions feasible. The smooth and low
cost transaction had made it feasible for small shopkeeper and
consumer as well. Once, you start using the UPI, you need less visits
to the ATM.

3. No Need to Give Details

Most of us avoid using online transaction and card payment because it

ask for the bank account details. For card transaction, you give card
number, validity period and CVV number. Whereas net banking
transaction expose your bank account details. For this reason, the
card and online payment is not as much popular. People still prefer
cash.

But the UPI solves this problem. The payment through the UPI does
not require the card details or bank account details. You have to only
give the virtual payment address. the virtual payment address is
similar to our email ID. e. g Ramesh45@icicibank, 9876543210@axis.
It is easy to remember this ID.
4. More Secure

Not everyone uses the card for payment. Not everyone uses the
netbanking for the online payment. People are reluctant to use the non
cash methods because of the security concern.

What if someone overlooks your PIN while you punch it at the POS
terminal. What if the website steal your credit card data and use it for
the international transaction.

The UPI has minimized this concern. Actually It is more secure than
the present mode of transaction. In the transaction through the UPI,
you never share you bank account details. You do not enter your
credit card number or CVV. You only give a virtual payment address
which does not give any clue about your bank account.

Also the authentication takes place at your smartphone. It is done by

punching the two different PINs. You can easily make it discrete while
typing at your smartphone.

5. Instant Transfer

The UPI is based on IMPS platform. Thus It works 24 x7. You can
make payment any time. There is no restriction of holiday or
odd hours. The bank strike will also not affect the UPI payments.

6. One UPI App Many Accounts

After the UPI mobile app, you do not need multiple apps for multiple
bank account. A single UPI would serve for many bank accounts. You
can link many bank accounts in a UPI based app.

Because of the multiple accounts at one place, you can pay by using
any of the account. You can also set the default account for the
payment.
5. Choose Any UPI App

You also get liberty to choose any UPI based app from the google
play store. It is not mandatory to use the App promoted by your bank.
Your bank account may be with the ICICI Bank, but you can use the
UPI app of the axis bank.

Before using an app, check carefully the interface and ease. Also, use
those app which gives you desired Virtual payment address.

Note, with the change of App you have to get a new VPA, thus it is not
advisable to change it frequently.

6. Immediate Registration of Payee

The registration of new payee for the online fund transfer takes some
time. This time varies form half an hour to 24 hours. However, the UPI
doesn’t have such waiting period. You can instantly transfer fund to a
new payee.

7. Money Collection Facility

If you have given a service or product to someone and want the

payment, what would be way to ask for the money? You will send a
person or make a call.

You would agree that getting money from a party is always tough.
There can be numerous excuses. But, the UPI would give more power
in the hands of biller and It would not be easy for the client to give
excuses.

The money collection facility of the UPI sends a message directly to

the party. This message is sent via the bank. It only asks approval for
the payment. If the client approves, the money would be remitted
instantly. If the client does not approve, it means he/she does not
want to pay. Now the biller can deal it differently.
8. Avail COD Without Paying Cash

We love online shopping till it does not ask money upfront. That is why
80% people opt for cash on delivery. The apprehension is simple,
what if I do not get delivery. What if I get a packet of stone instead of
the mobile phone. So, why take risks, go for the cash on delivery.

However, sometimes, you don’t have enough cash at your home. If it

is a big purchase, you have to rush to the ATM before the delivery boy
comes. The UPI ends this hassle.

You can go for the cash on delivery but you are not required to keep
cash at your home. You can pay it instantly using the UPI fund
transfer.

The Online seller would use the fund collection facility of UPI.
Subsequently, You would get a message for the payment approval.
You can hold the approval till the delivery. As you get the product,
Approve the payment. The delivery boy would get the message
immediately of the payment. The cash on delivery is done without
using the cash. In actual sense, It is pay on delivery.

9. Cheaper Alternative of POS Machine

It is difficult to pay through the card in small cities. Most of the

merchants don’t have the card swiping machine. Let me tell you that
this machine is called as the POS terminal.

So, small merchant don’t keep POS terminal because it is costly. They
have to pay for the machine. Along with this they have to pay the
service charge for each transaction. It varies from 1.25% to 2.5% of
the transaction value.

You would have also faced the situation when vendor ask the service
charge from you. It happens in a competitive market. In fact keeping
POS terminal is not very beneficial for small traders.
But, UPI would do the same work with negligible cost. AS UPI
operates through the smartphone, anyone can collect money without
spending for the machine. Also, the transaction cost is mere 50 paise,
It is very low compared to the POS terminal.

11. UPI would Replace Many Digital Wallets

Digital wallet has eased the online payments. The mobile recharge,
rail tickets, online shopping has become very smooth because of the
digital wallets. But the number of such wallets are increasing. Paytm,
Freecharge, Flipkart and IRCTC, Everyone want you to keep the
digital wallet. So it become hassle to maintain more than one wallet.

The UPI would end this hassle as well. The payment through the UPI
is as easy as payment through the wallets. But a single app is enough
to pay anywhere. Also, the UPI does not ask money in advance.
Rather, your money remains in the bank account and keeps earning
the interest. Digital wallets don’t give any interest.

So, I have told you the benefits of UPI. You can also learn
the upcoming features of the UPI in my another post. Now, it is your
turn to avail this facility immediately. Download the UPI App, register it
and do the first transaction. Share your experience. Do you also find it
useful?

List of best Mobile Wallets in India to

Make Online Payments
RECOMMENDED: Click here to fix Windows errors and improve system performance

India aims to become cashless now. The online mode of payments has been increased, and most of
us are looking for safe and secure ways of doing it. If you are also looking for the same, then this article
is for you. Mobile Wallets or Digital Wallets or e-Wallet apps allow you to pay electricity bills,
mobile recharge, get movie tickets and do a lot more right from your mobile. By linking your Credit or
Debit Cards or Bank accounts with these e-Wallet apps, you can easily make a payment using your
mobile.
You can generally load money into these digital wallets via Internet banking or via your Credit or Debit
Card. On most of these e-Wallets, there is a limit of Rs 20,000 for users who have not submitted their
KYC documents If you submit these documents, the limit is raised to Rs 1.00 lakh.

Before we proceed, we should know a bit about UPI, which is the infrastructure on top of which end-
user apps are built, so that they can use the features offered by it. Unified Payment Interface or UPI
is the new mode of payment. Sending and receiving using UPI app is simple using Virtual Payment
Address (VPA) and there is no need to add the beneficiary account details, account number, and IFSC
code. Every bank has it’s own UPI app and make sure that you install the UPI app of your bank which
allows you to send and receive payments between any two bank accounts.

Mobile Wallets to Make Online Payments

Mobile wallets allow us to make bill payments, mobile recharge, transfer funds and a lot more using
mobile. With e-Wallet apps installed on your mobile, you are no need of carrying cash. In this post, I
will list download 10 mobile wallet apps in India to make online payments.

1. PayTM

PayTM is one of the best digital wallets to make payments. It allows you to add your Credit/Debit cards
and link your bank account to it. Make use of QR code to send and receive payments easily. PayTM
mobile wallet allows you to buy movie tickets, online mobile recharge, pay electricity bills and more
from your mobile. It is available for Android, iOS, and Windows Mobile Phone.
This post will show you how to use Paytm to make online payments & transfer money.

2. Mobikwik

Mobikwik is another versatile & secure app that allows you to pay or transfer money using the mobile
number. It allows you to make mobile recharge and pay bills in seconds. Use Mobikwik mobile wallet
and buy anything online with good discounts. Making bill payments, mobile recharge, shopping and
more has become easy with Mobikwik mobile wallet. It is available for Android, iOS and Windows
Phone.
3. FreeCharge

FreeCharge e-Wallet allows you to add credit and debit cards which make it easy to make payments.
It is the fastest growing digital payment platform allowing you to pay electricity bills, mobile and DTH
recharge and more. Use FreeCharge mobile wallet and avoid long queues. It makes us easy to make
online and digital payments securely using mobile. FreeCharge is available
for Android, iOS and Windows Phone.
4. State Bank Buddy

State Bank Buddy by State Bank of India is the first Indian mobile wallet available in 13 Indian
languages. Using this sending money, asking reminders to clear dues, instant bill payments and more
from your mobile. Sate Bank Buddy mobile wallet helps you to do so by linking your credit or debit
cards to it. It allows you to load amount into your wallet and make payments to your contacts on
phone book. It is available for Android and iOS.
5. HDFC PayZapp

PayZapp from HDFC Nabk is available to customers of all banks and allows you to make payments
with just a single click. Make payments easily by adding credit or debit card details. Your card details
are safe with the bank and no need to worry about that. PayZapp mobile wallet does three security
checks for every transaction. It is available for Android and iOS.
 Advt

6. ICICI Pockets

Pockets app is the first mobile wallet app in India allows you bring UPI-based payments. ICICI
developed this mobile wallet, and it helps you to make payments online. Now you can shop anywhere,
pay anyone and bank with ease. It allows you to transfer money, book tickets, do mobile recharge and
more. With just a single click, sending and receiving payments to and from Pocket users. It is available
for Android and iOS.
7. LIME

LIME is launched by Axis Bank providing your payments, banking, and shopping facilities. It is available
for an account and non-account holders. Pay your shopping bills, mobile recharge, buy movie tickets
and more using LIME mobile e-wallet. Just add your credit or debit card details, and you can make
payments through your mobile. It is available for Android.
8. PhonePe

PhonePe from Flipkart Group Company works over Unified Payment Interface. It allows you to make
all your payments securely. You can make bank to bank transfers using Virtual Payment Address. As it
is a UPI app, there is no need to add details of the beneficiary account. PhonePe mobile wallet provides
you discounts and coupons when you shop online. You can top up your mobile wallet by linking it to
your bank account and allows you to transact maximum up to 1 lakh rupees. Make sure you install this
e-wallet in your mobile and make payments online. It is available for Android.
9. Ola Money

Ola Money allows you to make payments for all your daily needs. Recharge Ola Money wallet using
your credit/debit card or net banking. Keep track of your transactions by looking at transaction history.
Paying for the Ola and other cabs also made easy using this mobile wallet. Ola Money mobile wallet
helps you to transfer money to your friends. It is available for Android and iOS.
10. Airtel Money

Airtel Money wallet got launched by Airtel Payments Bank. Make payments, do mobile recharge and
transfer money to your friends of any bank account using this mobile wallet. You can shop online with
great discounts and coupons. Banking and remittance services are supported by Airtel Money. With
this e-Wallet app, you can make payments with just a single click. It is available
for Android, iOS and Windows Mobile Phone.
Windows 10 Mobile Phone users may want to check out Microsoft Wallet. It allows users to simply Tap
and Pay! There are several other Digital Wallets for your Windows Mobile Phone. You might want to
take a look at them too.

There are several others like Oxigen, Jio, etc, that are available. Currently, MobiKuick, Paytm,
FreeCharge are being accepted at Tool Plazas. FreeCharge can be used for paying Police Fine challans.
Reliance Jio plans to bring on board 10 million merchant establishments for its Jio Money Merchants
plan. MobiKwik is accepted by IRCTC. Paytm supports flight tickets. If you and the recipient have Paytm
or MobiKwick apps installed, you can transfer money by simply entering the mobile number.You can
also send money directly to bank accounts online. So make sure that you check out all their features
and download the one’s you want directly from their official app store only.

These are some of the best mobile wallets in India to make online payments. Hope you find this post
useful and start using them right now. Want options? Take a look at these PayPal alternatives.

Using mobile wallets in your mobile helps you to go cashless and make payments from your mobile. If
you are already using one, do let us know in the comments which one you prefer and why.
Features of payment systems Payment Mechanism Salience of Form Salience of amount Transparency
Temporal Separation Temporal Orientation 8 Tokunaga, Howard (1993). The use and abuse of consumer
credit: application of psychological theory and research. Journal of Economic Psychology, 14, 285-316.
Raghubir, P., Srivastava, J., (2008). Monopoly money: The effect of payment coupling and form on
spending behavior. Journal of Experimental Psychology-Applied, 14(3), 213- 225. 9 Prelec, D., and G.
Lowenstein. 1998. “The Red and the Black: Mental Accounting of Savings and Debt.” Marketing Science
17:4–28. Soman (2003) argues that salience may also depend on the form of payment.( Soman, D.,
(2003). The effect of payment transparency on consumption: Quasi-experiments from the field.
Marketing Letters 14(3), 173- 183. ) 10 Soma, D. (2001). Effects of payment mechanism on spending
behaviour: The role of rehearsal and immediacy of payment. Journal of Consumer Research, 27(4): 460-
474. http://dx.doi.org/10.1086/319621. Morewedge et al.(2007) have shown that consumers perceive
the purchase or consumption to be cheaper when he/she has more financial resources that are
cognitively accessible.(Morewedge, C. K., Holtzman, L., & Epley, N. (2007). Unfixed resources: perceived
costs, consumption, and the accessible account effect. Journal of Consumer Research, 34(4), 459–467.)
11 Braga, F.D., Isabella G and Mazzon JA, (2013)digital wallets as a payment method influence consumer
in their buying behaviour, available at
http://www.anpad.org.br/admin/pdf/2013_EnANPAD_MKT1209.pdf Accessed at:
http://www.nipfp.org.in/publications/working-papers/1772/ Page 11 Working Paper No. 182 Cash Very
High High High No, Do not exist Perception of present-present Cheque Medium High High Low
Perception of presentpresent/future Credit Card Medium Medium Medium High Perception of present-
future Debit Card Medium Medium Medium No, Do not Exist Perception of present-present Store Value
Card Low Low Low Medium Perception of present-present Auto Pay(direct debit from bank account)
Very Low Very Low Very Low Low Perception of present-present Digital Wallet Medium Medium
Medium High Perception of presentpresent/future Source: Braga et al.(2013)

Payment Salience of Salience Temporal Temporal

Mechanism Form of amount Transparency Separation Orientation

No, Do not Perception of present-

Cash Very High High High exist present
 Perception of
Cheque Medium High High Low presentpresent/future

Perception of present-
Credit Card Medium Medium Medium High future

No, Do not Perception of present-

Debit Card Medium Medium Medium Exist present

Store Value Perception of present-

Card Low Low Low Medium present

Auto
Pay(direct
debit from
bank Perception of present-
account) Very Low Very Low Very Low Low present

Digital Perception of
Wallet Medium Medium Medium High presentpresent/future