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24/09/2024
Digital wallets in India have helped change policies towards managing and accepting payments with faster and more secure transactions. This is one of the main reasons why all e-commerce payments are made via digital wallet. In line with their different benefits and features, all of the many wallets have their respective upsides. In this guide we will look into some of India's most popular digital wallets and examine the types that are available here. Whether you’re the owner of a small business, a multinational corporation, or anywhere in between, this guide is going to help you find the best digital wallet for yourself in order to provide hassle-free payment experience every time.
Digital wallets are divided into four categories:
Closed wallets are virtual wallets of payment that can be used within a company’s system. Such wallets do not allow customers to withdraw cash or initiate transfers to other banks. Ola Money Pay and Amazon Pay are two common examples of closed wallets.
Semi-closed wallets are digital wallets that work within a specific network of merchants so people can make transactions at select businesses. Companies offering semi-closed wallets include Paytm Wallet and MobiKwik.
Open digital wallet users can make digital payments with any merchant, including those who are not associated with the wallet provider. The wallets are enabled to make payments for goods and services as well as transfer money to other bank accounts. Google Pay and PhonePe come under the open wallet category in India.
These wallets enable one to interact in limited transactions with a group or class of businesses, make bank transfers using electronic fund transfer protocols and withdraw money from ATMs. Examples of hybrid wallets include Payzapp and JioMoney.
Now that we have taken a look at the different types of digital wallets, let's compare some of the widely used digital wallets in India to help you choose one for yourself based on features and benefits:
Paytm, which was started as a mobile recharge platform in 2010, today reigns as India's largest digital wallet. This One97 Communications owned platform has over 337 million registered users today. Paytm brought many firsts such as online shopping, bill payment and mobile recharge. There are frequent discounts, rewards for customers who use the service frequently it also allows users to book railway train tickets and flights through its app. However if you use the Paytm wallet for frequent small transactions it's convenient enough, but for large transactions or purchases there are further documentation and charges. Refunds if any also take as long as 7 days to go back into your account depending on error categories.
PhonePe was released as a UPI-based digital wallet in 2016 and is now used by over 250 million registered users in India. Though it was once owned by Flipkart, PhonePe is now majorly owned by Walmart. Along with recharging mobile phones and offering insurance, PayPhone also offers a lot of other features like booking for travel through third-party apps like MakeMyTrip. PhonePe also has this distinctive feature where bills can be split and shared between users. PhonePe users can likewise avail of discounted subscriptions to several OTT platforms.
Google Pay has more than 70 million users in India. Users can make utility payments as well as transfer money to other users and banks. For every transaction made there’s a scratch card to be won that offers various freebies and discounts on known brands.
Amazon Pay was launched in 2007 as an Amazon.com payment service and has since become major player in the digital wallet market. According to the latest figures, it has amassed over 50 million registered users in India. Amazon Pay offers all the essential functions of a digital wallet, from mobile recharges and bill payments to shopping online. But unlike other digital wallets in India, the balance in your Amazon Pay account may be used on Amazon.in for purchases. However, not all merchants or facilities accept Amazon Pay, which could restrict its usefulness and force you to bring along additional means of payment.
MobiKwik was launched in 2009 by One MobiKwik Systems Private Limited service as a phone recharge platform, and today has 108 million registered users in India. Besides providing phone recharges, bill payments, discounts and cashback on transactions, MobiKwik also lets users invest their money in mutual funds through the app.
Today, India has a host of digital wallets to fit everyone's needs. Thanks to these digital payment tools, financial transactions have changed diametrically in India. With comprehensive solutions such as Maximus PAYRAKAM providing a solid foundation for smooth transactions of any sort - whether internal or external turbocharged by consumer-like experiences in all respects, a business or financial institution can bring its payment capabilities up to date. This solution aims to streamline financial transactions for customers, agents, and aggregators while aligning with banks' visions and offloading technological complexities.
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