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Digital payments in India continue to expand, as does competition among applications that provide these services. Due to the launch of UPI and the drive for digital payments amid the COVID-19 epidemic, every fintech business wants to jump on board and provide the best financial services.
Phonepe and Paytm are both Fintech companies offering various services, including digital payments, financial services etc.
What is UPI?
UPI (Unified Payments Interface) is a real-time payment system that allows users to transfer money instantly between bank accounts in India. With the help of this, users can transit 24/7, including weekends and holidays.
What is Fintech?
Financial technology (Fintech) is the use of technology to enhance and automate financial services. Fintech firms provide services such as online banking, mobile payments, investment management, and insurance with the help of using digital platforms, software, and other technological breakthroughs. Fintech is changing how people interact with money and financial institutions, improving the accessibility of financial services to a wider variety of people and organisations, and boosting the speed and efficiency of financial transactions. Paytm, Razorpay, Lendingkart, InCred, and Phonepe are some of the prominent fintech businesses in India.
Both Paytm and Phonepe are among the most famous apps in India and are level-pegging. Check out our detailed comparison of Phonepe and Paytm to see which app is best for you.
WHICH IS BETTER: PHONEPE OR PAYTM?
|
PARAMETERS |
PHONEPE |
PAYTM |
|
MARKET SHARE |
50% |
11% |
|
VALUATION |
$12 Billion |
$ 3.8 Billion |
|
PAYMENT BANK |
Don’t have payment bank |
Have payment bank |
|
CASHBACK |
Give more cashback |
Less cashback |
|
BETTER CUSTOMER CARE |
More efficient customer care |
Less efficient customer care |
|
PLATFORM FEES |
Rs. 1 for recharge above Rs. 50 and Rs. 2 for recharge above Rs. 100 |
Rs. 1 for recharge above Rs. 100 |
|
OPTION FOR TRADING |
Don’t allow to open a Demat account |
Allow opening of Demat account |
|
SAFETY MEASURES |
More secure |
Less secure |
|
MERCHANT PAYMENTS |
Automatically saves the name of the beneficiary after the first payment |
Doesn't saves name automatically |
|
USER-FRIENDLY INTERFACE |
Have user-friendly interface |
Not much user-friendly interface |
Here are our opinions based on our research and user feedback:
In Paytm, you’ll get most of the cashback after activating the offer, whereas Phonepe doesn't require you to start anything to win cashback.
But in the case of Phonepe, you don’t need to activate anything.
Both applications offer mainly the same services. Paytm requires more steps to carry out a transaction compared to Phonepe. However, if one is new to these applications, he can begin with Phonepe for its easy-to-use interface.
Both applications allow you to recharge your phone, DTH, or other utilities. Phonepe, on the other hand, completes this step faster than Paytm. But you’ll get all the recharge services by clicking the recharge icon in Paytm.
Paytm appears to be a suitable match for reservations and services. Paytm is more convenient than PhonePe for booking movies, airline, and rail tickets.
Both of the fintech companies offer good customer care service. However, you’ll find the customer service of PhonePe more effective.
Lastly, we hope that we have provided some clarity regarding the comparison between Phonepe and Paytm.
So, which Fintech app will you be using?
Also Read, what leaders are hinting towards the usage of AI?
