With the ever-increasing urgency and productivity of the Indian population, people nowadays want speed and convenience in everything they do. Why should they still handle money and payments the old way?
With this question in mind, there was an upcoming stream of online payment and transaction apps in India. The demonetization in 2016 due to the lack of cash on hand people were forced to adopt these platforms that they were skeptical of at the start.
Two of which stood out in the mildly crowded market, PAYTM, AND PHONEPE. Since the demonetization in 2016, fintech and online payment platforms have picked up in India, and for good reason.
PhonePe- PhonePe is a financial technology and digital payments startup based in Bengaluru, Karnataka, India. Sameer Nigam, Rahul Chari, and Burzin Engineer started PhonePe in December 2015.
In August 2016, the PhonePe app, which is based on the Unified Payments Interface (UPI), went live. Flipkart, a Walmart subsidiary, owns the company.
Paytm- Paytm is a multinational Indian financial technology business that specializes in digital payment systems, e-commerce, and financial services.
The company offers its registered users an app that allows them to conduct financial transactions and payments with a variety of merchants and financial institutions. Paytm was launched in August 2010 in Noida, Delhi NCR, with an initial investment of US$2 million by its founder Vijay Shekhar Sharma.
Market Share
The UPI market is dominated by the two leading companies – PhonePe and Google Pay. PhonePe has 43.9% of the market share and Google Pay acquired 35% of the market share. Paytm is the third-largest player on this list.
Marketing Campaigns
PhonePe was able to reach millions of Indian households thanks to IPL sponsorship and widespread television advertising. Aamir Khan and Alia Bhatt, two well-known Bollywood actors, were enlisted to appear in the commercial. Many people are drawn to the innovative advertising model.
One intriguing idea in their advertising campaign is to target the public’s most common complaints. For example, a large crowd gathered in a samosa shop and simultaneously gave money to the shopkeeper. They were all stuck because the shops couldn’t manage them. One new face appeared in the crowd, displaying a PhonePe digital transaction receipt and exiting the store with a samosa.
Paytm
While shopping in local Kirana stores in India, when shopkeepers say they don’t have enough coins to pay the balance money, they usually give candy instead. For example, if I buy something for 98 rupees and give the merchant 100 rupees, instead of the remaining two rupees, I get two rupees worth of candy.
To address these challenges, Paytm launched a lovely marketing campaign. Instead of balancing money, Paytm teamed with a candy manufacturing company, and shopkeepers supplied the same chocolates to clients.
These candies are made by a Paytm partner company and include a cashback code on the candy wrapper. Customers must download the Paytm app and enter the redeem code to receive the cashback.
This advertisement was a smash hit. One million users have downloaded the app after this campaign.
Both PhonePe and Paytm are at the top of their game in marketing and are some of the most creative campaigns in the space. Although, both are doing the incredibly difficult job of shifting Indians from cash transactions to digital payments.
Which is better, PhonePe or Paytm?
Overall ratings-
PhonePe has 4.4 stars on the google play store with over 8 million reviews.
Paytm has 4.6 stars on the google play store with over 12 million reviews.
User Interface
PhonePe
The PhonePe platform is somewhat better than Paytm in terms of user interface because it is incredibly spacious. The platform provides a clear and seamless experience for its users and simplifies the payment procedure.
Furthermore, when compared to the Paytm platform, the typefaces used on PhonePe are far more clear and readable.
Paytm-
In comparison to the PhonePe app, the Paytm online payment ecosystem is a little more concentrated, and its outlook is less apparent.
When compared to the PhonePe platform, the typefaces on the Paytm platform are smaller. The Paytm platform offers over 50 services, including Paytm Mall, Paytm Gold, and many others, which explains the crowded icons and small lettering.
UPI Payments Facility
With the use of the IFSC code, PhonePe allows you to send UPI payments to your contacts and other account holders. You can also move money from one bank account to another using this method. On the PhonePe app’s home page, you’ll see a money transfer option, which you may use to select a beneficiary. By clicking send to complete the payment,’ you can get to the payments page with a single click.
Paytm follows a similar procedure but with a few extra steps. When compared to Paytm, people find it easier to make UPI payments through PhonePe.
CashBack
Which app offers the most cash back? Is it better to use Paytm or PhonePe? Both digital payment apps offer cashback on your purchases. Which one pays more money depends on the situation. The largest reward is likely to come from your first transaction on each app. PhonePe offers cashback on transactions without requiring the activation of any special offers. To get the cashback on Paytm, you must first activate an offer.
Charges
Fund transfers from your digital wallet to your bank account are charged by both Paytm and PhonePe. When it comes to funding transfer fees, neither Paytm nor PhonePe offers any type of relief. Both Paytm and PhonePe charge virtually the same fee.
Customer Care
Paytm and PhonePe both have dedicated customer support numbers. The ‘help section’ of PhonePe is vast, covering practically every conceivable query. The assistance section can answer the majority of your questions. PhonePe representatives can also be contacted, and you can expect a response within 24 hours. Paytm isn’t far behind in this regard. Its 24-hour support desk has substantially improved over time and is now on par with some of the best in the world.
Salient Features Of PayTM and PhonePe
PhonePe
- Zero banking charges
- UPI transactions
- Bill payments, DTH recharge, and ticket bookings
- The transaction limit is INR 10,000 for wallet and INR 1 lakh for UPI
Paytm
- Zero banking charges
- Transaction limit of INR 1 lakh for wallet along with UPI bank transfer
- RBI-approved safe and secure digital wallet
- The payments bank, ticket booking (for trains, buses, flights, and movies), and UPI payments.
Transaction Success %-
FAQs-
Which is more popular, PhonePe or Paytm?
In 2021, Phone Pe achieved its highest ever monthly transactions ever, holding its place as the most cemented platform for digital payments in India. Paytm also has slow and steady growth, but Phone Pe’s deep integration into tier 2 and 3 cities gives it the edge it has.
Which payment app is best?
PhonePe is widely regarded as the most used and most popular payment app in India, closely followed by Google Pay and Paytm.
Which is the safest UPI app?
You can use any app among Phone Pe, Google Pay, and Paytm. Make sure to set up a UPI pin before you make any transactions and always enter the right amount and the receiver’s name.
Is PhonePe safe to use?
Yes, Phone Pe is safe and secure, the app does not store any data or passwords.
Does PhonePe need a bank account?
Yes, you need an active bank account in order to link it to PhonePe and use the UPI services.
In conclusion, Phone Pe is the most popular digital payments app followed by Google Pay and Paytm in a close match. These apps are working extremely hard to get the mildly hesitant Indian public onto digital payments and digital payment platforms. Having used all these platforms, we can say that they’re all safe and quick enough for your transactions and you should go digital!
