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Paytm, Bhim, or Google Tez: Which one to opt for transferring money through your smartphone?

Paytm, Bhim, or Google Tez: Which one to opt for transferring money through your smartphone?

On Monday, Google became the latest entrant into India's already burgeoning digital payments market by launching its own mobile payments app 'Tez'.

On Monday, Google became the latest entrant into India's already burgeoning digital payments market by launching its own mobile payments app 'Tez.' With this launch, not only the number of mobile payment options have increased, the confusion around choosing a, secure, convenient and cashless payment option has also widened up. Here's a detailed look at various options available to help you make the best decision.

Mobile wallets
Mobile wallets have been the biggest beneficiary of demonetisation drive carried out by the government last year. In the latter's effort to boost cashless transactions in the country, the mobile wallets witnessed huge surge in traffic. There are number of mobile wallets in the country such as Paytm, Mobiwik, Oxigen, Freecharge etc. The payment via mobile wallets begins with loading money on to your wallet through your bank card (debit or credit) or net banking. You can easily load up to Rs 20,000 with minimum KYC. While wallets also help you pay bills, book movie tickets and pay at the restaurant through them, the amount that you pay goes to the mobile wallet of the user and not directly to the bank. Also, the payee and the payer need to hold the same wallet to transfer funds between them. So if someone has an account with a mobile wallet like Paytm, it won't be possible for him to send money to someone who doesn't have the account with the same mobile wallet firm or uses another wallet.

Bhim
In January this year, the government launched (Bharat Interface for Mobile) BHIM app that works on Unified Payments Interface (UPI) -a system that powers multiple bank banking features accounts into a single mobile application (of any participating bank) and merges their several features. Here, unlike mobile wallets, the transactions are directly linked to bank accounts and doesn't require loading any money and therefore continue to earn interest on the money kept in the bank. So, you don't lose the interest earned on the money by the bank by keeping it.  All the payer and recipient need are bank accounts, of their own connected to the UPI, and should possess a virtual payment address. To make the payment, you can use the virtual payment address of the recipient. The recipient also needs not be on BHIM app. A bank account is all that is needed to receive the payment.

Google Tez
This is the latest entrant in the mobile payment space. While this is lot like Bhim app and directly links to over 50 banks in India including ICICI Bank, State Bank of India and HDFC Bank. It also allows you to transfer money in more ways than one. So while you can pay entering the virtual id or UPI id of the recipient without storing money on the app, it is also possible to transfer money using the camera to scan a QR code, or by entering the phone number of the recipient. Then there is 'Cash Mode' that allows quick transfer of money with nearby Tez users using technology that uses sound to pair your device with another nearby device. It therefore doesn't necessitate a bank account number or phone number. The app is available in number of languages including English, Hindi, Bengali, Kannada, Tamil, Gujarati, Marathi, and Telugu and is available on Android as well as iOS.