PhonePe is a mobile wallet application launched by Flipkart in 2015. When Walmart bought Flipkart in 2018, PhonePe became a subsidiary of Walmart. Paytm was launched by One97 communications in 2010. At the peak of its popularity, Paytm was the most popular mobile wallet application.
When the Government of India introduced Unified Payment Interface, PhonePe and Google Pay grabbed a considerable chunk of Paytm’s market share. The two apps are now the leading competitors of Paytm. According to Moneycontrol, PhonePe has a market share of over 43% in the UPI payments category. Paytm is still a leading payments platform. It offers many financial services. The parent company was recently listed on the Indian stock exchange BSE.
Below, we’ve compared the two payments apps. Let’s find out which app gives you access to more payment-related services and is better.
Paytm vs Phonepe
Paytm and PhonePe apps have a user-friendly interface. In both apps, it is easy to create a UPI ID, link the bank account with the app, check your bank balance, and transfer or receive money. PhonePe lets you create and manage multiple UPI IDs. One of the significant differences between the two services is that you can access Paytm on desktop browsers, but you cannot use the PhonePe service on computers.
Paytm features a passbook section that shows all your transactions in one place. PhonePe also has a similar utility called History. The apps group transactions by the date. Hence, it is easy to see transactions that were executed on a given date.
PhonePe and Paytm can generate and scan QR codes. You can share the code with friends or people from whom you want to collect payment. The applications can also scan QR codes printed on paper or stored on your smartphone.
PhonePe has stopped offering cashback a long time back on recharges, bill payments, etc, but various popular online/offline services have partnered with it to offer cashback when they purchase something from their site or application. Paytm has introduced the concept of cashback points. On some transactions, Paytm offers cashback and cashback points. Sometimes, it provides cashback points or cashback only. Like PhonePe, Paytm has also partnered with online several firms to offer cashback when they buy products from popular third-party sites/services.
Unlike GPay that transfers the cashback you earn to your bank account, PhonePe and Paytm send the cashback amount to the wallet. The apps allow you to add money to your wallet.
In PhonePe, you will have to visit the offers section to see the cashback offers. Paytm shows all types of cashback offers on its main interface.
People using credit cards often complain that their payments made with a wallet/UPI application are not reflected in their credit card accounts quickly. Credit card payments are faster with Paytm and a bit slower on PhonePe. UPI transactions are swift on both apps.
PhonePe has a vast directory of offline businesses grouped into 15 categories. To see the list of businesses, all you have to do is tap on the category name. PhonePe lets users see the business on a map and filter the businesses by their rating, distance, etc. The application allows customers to chat with the businesses. Thus, before visiting a business, you can find out whether a product you want to buy is available or not. PhonePe can also show the directions to the business. Paytm doesn’t have the business finder/locator function.
Paytm has launched a payment gateway that website owners can integrate with their websites or mobile applications and accept payment from users via credit card, debit card, net banking, UPI, etc. Paytm accepts payments from users situated in the US, Europe, and other countries. PhonePe hasn’t launched a payment gateway yet.
Postpaid and payments bank
Want to buy something, but your salary isn’t credited yet or will be credited late? Paytm ships with a postpaid feature through which users can buy an item now and make its payment later. The company charges 0% interest on postpaid payments. The interest rate might change. The application also lets you open a bank account with them. The interest applicable on fixed deposits with Paytm are 6.5%.
Paytm has partnered with various NBFCs to offer loans to specific people. If you see the option to avail loan and you need money, you can tap on the option and fill the form that Paytm displays. The form asks you to enter your name, pan card number, etc. Once you fill the form and submit it, Paytm will check whether you’re eligible to get a loan or not. If you’re eligible, the application will show the loan amount and rate of interest applicable on loan. Once you choose the amount and tenure, you will be asked to enter the bank details. The loan will be disbursed quickly. Before disbursing the money, Paytm will prompt you to set up an auto-debit EMI facility. PhonePe shows loan-related ads only. It has not partnered with NBFCs to offer loans.
Insurance and stock market
PhonePe and Paytm lets users buy a car, bike, and health insurance and pay its premium from their platform. Paytm has introduced special types of insurances such as dental insurance, corona insurance, dengue insurance, etc. Paytm is in the stock brokerage business too. It lets you buy and sell equities and trade derivates at cheap brokerage charges.
Phone and Paytm are secure applications. If you want to use Paytm on the desktop, you will have to log in to your Paytm account by scanning a QR code. A few years back, users were allowed to log in to their accounts by entering their email addresses and password. The two applications support fingerprint and passcode based unlock methods on mobile devices.
Closing words: Paytm is the ultimate payments application for anyone looking for credit, cashback, and an easy way to make payments. PhonePe is also a good app, but it lacks many facilities its competitor Paytm offers.