The top 5 e-Wallets and their comparison
- Abhinav Mishra
- Expert +
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The buzz word for the past 45 days has been Demonetisation and e-wallet. After the historic announcement of demonetisation, government is promoting cashless system and therefore e-wallet companies have big opportunity to capture existing and upcoming customers.
Till some time back online transactions were only done by debit and credit cards or through net banking. However, at this hour when country is going cashless, these options are not welcomed by everyone. The possible reasons are security, need of good internet connection, non user friendly experience. As a result e-wallets have picked up and many e-wallet options are available to consumers in market. Here is a comparison among the top few –
One97 communications started Paytm in 2010 as a mobile recharge company but now has moved to full-service digital payments facilitator. It has over 15 lakh merchants and 165 million user base. Being first in the e-wallet market and with good investors on board, Paytm has edge over other players in the market.
Paytm has its presence in all the domains - Mobile recharge, Utilities payments, Groceries; fruits and vegetables from street vendors, Auto and taxi booking, pay school or college fees and everything else you can think of paying online. Paytm has partner tie-ups with Visa, MasterCard, RuPay, PCI, Safekey and Diners. You can also transfer money to individuals without any transactional charge.
Paytm users can transfer up to Rs. 5,000 at a time, with 25,000 per month the limit. If you are a merchant, you can transfer up to Rs. 50,000; with the limit going up to Rs. 1 lakh if you are a KYC user.
The company has recently entered this sector but is growing very fast. For the last couple of months, company is offering huge cashback to its existing and new users. Launched in September’15, it mainly focuses on large organized retail and food service establishments. Its working is almost similar to Paytm, but it comes with an interesting feature ‘split bills’ wherein a single bill can be split equally or in any ratio between numbers of people. The app is available on all Operating System. Its reach is not as wide as Paytm and it cannot be used with major services like Ola and Uber.
You can store a maximum of Rs. 20,000 in your account at any given time. You can transfer Rs.5000 per transaction and maximum of Rs. 25,000 in a day to your bank account.
It has a history similar to Paytm – started as prepaid recharge website and later started e-wallet. It has a strong presence in market as it focuses on small establishments and users like Kirana shops, rickshaw pullers, taxi and auto drivers, etc. In spite of all these, their presence is not as wide as Paytm. The distinguishes factor for Mobikwik is recently launched Mobikwik Lite, an application which is less than 1MB and has been created to target 2G users with traditional handsets.
There is 0% charge for transferring from wallet to bank. The cap for transfer is also less compared to Paytm. One can only transfer Rs 500 per transaction and a maximum of Rs 2000 a month.
Oxigen is old player in payment market but the company jumped into mobile wallet domain in 2014. The distinguishing factor for Oxigen is that you can share money with your friends and family over preferred social networks and messaging platforms like Facebook, WhatsApp, Google+ and Twitter. Apart from this users can recharge their mobile phones, pay bills and shop across a large number of online merchants.
You can accept payments up to Rs. 10,000 per month in your non-KYC Oxigen Wallet account.
Unified Payment Interface
The problem with all the above e-wallet is that you require an internet connection for any type of transaction. UPI is a payment system that allows money transfer between any two bank accounts by using a Smartphone. UPI allows a customer to pay directly from a bank account to different merchants, both online and offline, without the hassle of typing credit card details, IFSC code, or net banking/wallet passwords.
Apart from above key players there are few other e-wallets that you can go with like Citrus Pay, ICICI Pockets, JioMoney etc. We would like to hear from our readers which e-wallets they are using and reasons for using it.