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Best Wallet Apps in India 2025: Top Mobile & Digital Wallets, UPI Payment Apps & Prepaid Wallets Reviewed

The globe is slowly paving its way towards a cashless society. From invoices to cards and now to mobile wallets, this significant transformation has reduced the weight of bulky wallets. We can pay for any product, transfer money, make bill payments, and almost everything to do with money from the comfort of our home. Payment wallets in India have made online transactions of money easy and fast, with their one-tap feature and quick processing, all at one go.

What is a Mobile Wallet?
How Does A Mobile Wallet Work?
Types Of Mobile Wallets In India
Are Mobile Wallets Secure?
Top 15 Mobile Wallets In India
Advantages Of Mobile Wallets
Mobile Wallet vs Digital Wallet
Limitations Of Mobile Wallets In India

What is a Mobile Wallet?

A mobile wallet is a digital wallet that uses a bank account or credit/debit card to make payments seamlessly while securing the data of the user. They are designed to enable secured transactions with a hassle-free process, with reduced fraud. This method of online payment has proved to be more economical as compared to other physical wallets. These wallets are easily accessible as well from the play-store or app store.

India ranks 2nd highest in the Asia Pacific for digital payment adoption.

Digital payments in India are set to account for 71.7% of the total payments volume by 2025, leaving cash and cheque transactions at 28.3%, according to a report by a US-based payment systems company.

Since Demonetization hit the Indian Economy harshly, the Government promoted the use of these wallets and since then the user base of these e-wallets has been increasing significantly. Many digital wallets by the Indian Government has been given to citizens like UPI, BHIM, Aadhaar Pay and Payment Banks.

How Does A Mobile Wallet Work?

Start by downloading the mobile app of your choice onto your smartphone. Then, load the card information you want to store, from debit, and credit cards to loyalty cards and even coupons.

When you want to make a purchase with your mobile wallet, you can either:

Choose your app and select a card at the checkout screen when you’re shopping online with your smartphone.
Tap your phone to a digital payment-enabled terminal at participating merchants when checking out. Mobile wallets use what is called a Near-Field Communication (NFC) chip that lets you use contactless payment with a physical card.

Types Of Mobile Wallets In India

	Closed PPI	Semi-Closed PPI	Open PPI
Definition	Issued by a company to buy goods and services only from that company; it does not permit cash withdrawals or redemptions.	Can be used to buy goods and services from merchants that have a contract with the Issuer to accept the payment instrument; it does not permit cash withdrawals or redemptions.	Allows a user to buy goods and services, withdraw cash at ATMs or banks, and transfer funds.
KYC Requirement	No KYC required	No As Such compulsion for KYC	KYC is Required
Examples	Makemytrip Wallet	Mobikwik	PayTM Payment bank

Are Mobile Wallets Secure?

One security concern when using a mobile wallet is losing your phone or having it stolen. That’s why it’s smart to use something like two-factor authentication, which could include setting up a personal identification number or a fingerprint requirement to unlock your phone.

You can also protect your data by installing apps that will help you locate your phone if you lose it or remotely wipe the data so a thief can’t reach the sensitive information in your phone. If you see any suspicious or unauthorized charges on your account(s), it’s a good idea to immediately change your password and call your bank to let them know.

Payment Wallets in India

Top 15 Mobile Wallets In India

S.No.	Mobile Wallet	Why Users Like It	Key Features
1	Paytm	Wide acceptance across merchants and services	Recharge, bill payments, UPI, wallet, shopping, FASTag
2	Google Pay	Fast UPI payments, no wallet required	Direct bank transfers, rewards, bill payments
3	BHIM Axis Pay	Simple and secure for Axis Bank customers	UPI-enabled app with direct bank linking
4	PhonePe	All-in-one UPI app with cashback and offers	UPI, recharges, bill pay, gold purchase, mutual funds
5	Mobikwik	Good for wallet-based payments and BNPL	Wallet, ZIP Pay Later, bill pay, credit card bill
6	Yono (SBI)	Trusted for SBI users with integrated banking	UPI, wallet, account services, investments
7	Citi MasterPass	Secure checkout for Citi card users	MasterPass integration, card-based payments
8	ICICI Pockets	Handy digital wallet for ICICI Bank users	UPI, virtual card, recharges, send/request money
9	HDFC PayZapp	Linked with HDFC cards and bank accounts	Bill payments, recharges, shopping offers
10	Amazon Pay	Integrated with Amazon for fast checkouts	UPI, cashback, wallet, bill pay, shopping
11	Samsung Pay	Great for Samsung device users	Tap & pay, UPI, debit/credit card support
12	Apple Pay	Secure and convenient for Apple users	Face ID/Touch ID payments, NFC tap-to-pay
13	WhatsApp Pay	UPI payments via familiar chat interface	Simple peer-to-peer payments in chat
14	Freecharge	Basic wallet with bill pay and recharges	UPI, wallet, recharges, offers
15	Airtel Money	Useful for Airtel users and bill pay	Wallet, UPI, utility payments, insurance

Paytm

Mobile Wallet	Paytm
Founded	2010
Total Downloads	500M+ (on Google Play Store)

Paytm – Best Wallet Apps in India

Paytm is one of the largest online commerce platforms in India offering its customers a mobile wallet to store money and make quick transactions. It is considered by many the best mobile app in India. Paytm was launched in 2010 and basically works on a semi-closed model. Users can load money and make payments to merchants. E-Commerce is an added benefit of it, but despite that, you can make bill payments, transfer money, and avail yourself of services of entertainment, travel, and cashback. Payments through Paytm are accepted almost everywhere.

Google Pay

Mobile Wallet	Google Pay
Founded	2017 (India launch)
Total Downloads	1B+ (on Google Play Store)

It was formerly known as Tez and for obvious reasons, it gained its user base really quick, in spite of being a late entrant in the mobile wallet industry. It is the best online payment app or best money transfer app with cashback. Google Pay works with your existing bank account, which already means that your money is safe with the bank and no issues with recharging your wallet every month. Send or receive money from your friend directly to your bank account. There is also no such issue regarding KYC making it all the more popular.

BHIM Axis Pay

Mobile Wallet	BHIM Axis Pay
Founded	2016 (as part of UPI launch)
Total Downloads	10M+ (on Google Play Store)

BHIM (Bharat Interface for Money) is another best mobile wallet in India. It is a mobile wallet app developed by the National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). Launched in December 2016, it is intended to facilitate e-payments directly through banks. Users register their bank account with BHIM and set a UPI PIN for the bank account. It can be used by both Axis Bank users as well as other bank users. The Mobile Number is then the permanent address and they can start transacting. User can pay their friends, family and merchants with the tap of a button.

PhonePe

Mobile Wallet	PhonePe
Founded	2015
Total Downloads	500M+ (on Google Play Store)

PhonePe was launched in 2015 and is now a part of Flipkart. From UPI Payments to mobile recharges, and money transfers to online bill payments, this can be done easily on PhonePe. With a good user interface, PhonePe has offered the safest and fastest online transaction experience in India.

Mobikwik

Mobile Wallet	Mobikwik
Founded	2009
Total Downloads	50M+ (on Google Play Store)

Mobikwik was launched in 2009 with its key proposition in Recharge and Bill payments. Mobikwik is one of the independent mobile payment networks that has a user base of 32 million. This e-wallet lets its users add money using debit cards, credit cards, net banking, and even doorstep cash services. One of the unique features Mobikwik has offered its users is ‘expense tracker’, basically which allows users to set a budget for expenses via SMS data to analyze and control the expenditure.

Yono (SBI)

Mobile Wallet	YONO (SBI)
Founded	2017
Total Downloads	100M+ (on Google Play Store)

This application was launched by the State Bank of India to let users transfer money to other users, pay bills, recharge, book tickets, shop, and travel. This is one of the top mobile wallets in India and has offered its mobile wallet services in 13 languages the best part is, that it is also available to non-SBI customers. It taps into the special feature where-in it allows its users to set reminders for dues, and money transfers, and view mini-statement for the transactions done already.

Citi MasterPass

Mobile Wallet	Citi MasterPass
Founded	2013 (India launch by Citi)
Total Downloads	Not publicly listed separately

Citi MasterPass was launched recently by Citi Bank India and MasterCard. This is one of India’s first global outreach in terms of digital wallets for faster and more secure shopping. Citi Bank debit and Master card customers become the first in this country to shop at more than 250,000 e-commerce merchants. It has ensured fast checkout with a single tap and stores all credit, debit, prepaid, and shipping details.

ICICI Pockets

Mobile Wallet	ICICI Pockets (ICICI Bank)
Founded	2016
Total Downloads	5 M+ (on Google Play Store)

It’s one of the best mobile wallets in India. It has provided the convenience of using any bank account in India to fund your mobile wallet and pay for transactions. It basically uses a virtual VISA card that enables its users to transact on any website or mobile application in India and provides exclusive deals or packages from associated brands.

HDFC PayZapp

Mobile Wallet	HDFC PayZapp
Founded	June 2015
Total Downloads	10M+ (on Google Play Store)

PayZapp is a complete payment solution by HDFC Bank which has a one-tap feature for easy payment. Not only does it let you recharge your phone or send money but also your DTH and data cards, pay utility bills, and compare and book flight tickets, trains, hotels and shops.

Amazon Pay

Mobile Wallet	Amazon Pay
Founded	2007 (Global), 2011 (India)
Total Downloads	500M+ (on Google Play Store)

Owned by Amazon, this online payment processing service was launched in 2017 in India (globally- 2007). Amazon Pay has focused its customers more on Amazon and so it gives its users the option to pay with their Amazon accounts on external merchant websites, including apps like BigBazaar etc. With Amazon Pay, you get to shop on Amazon with a number of cashback and discounts with fast shipping services. Recently, Amazon Pay got tied up with fintech companies, such as Zest Money to enable no-cost EMI payment options. The application has also made it easier for buyers to buy products on Amazon and pay later via affordable monthly instalments.

Samsung Pay

Mobile Wallet	Samsung Pay
Founded	August 20, 2015
Total Downloads	100M+ (on Google Play Store)

Samsung Pay is a digital wallet service owned by Samsung, it was launched on the year 2015. It is considered one of the best payment processing services for contactless payments. Samsung is accepted in almost every store, wherever credit and debit cards can be used it also offers Cashback. With the help of Samsung pay, the transaction between merchants and payers are possible without the exchange of bank and card information. Samsung Pay accepts all kinds of card readers like magnetic stripes, EMV and others,

Apple Pay

Mobile Wallet	Apple Pay
Founded	October 20, 2014
Total Downloads	Not publicly disclosed

Owned by Apple Inc., Apple Pay is a digital wallet service, which was launched in the year 2014. Major credit and debit cards are supported in Apple Pay, it also provides extreme security through touch and face id. Anyone owning an apple device can use Apple Pay on them for making payments. The card information is kept confidential while making payments. Apple Pay currently is available in more than 60 countries.

WhatsApp Pay

Mobile Wallet	WhatsApp Pay
Founded	February 2018 (India pilot)
Total Downloads	Over 1 billion (WhatsApp Messenger)

Launched in the year 2018, WhatsApp launched the chat payment service to allow users to complete any kind of transaction through WhatsApp. The secure way of the transaction enables people to make payments easy just like sending a message on WhatsApp. WhatsApp Pay has also been providing some great features like Cashback to attract more customers. This UPI-based payment service provides the option of sending and receiving money.

Freecharge

Mobile Wallet	Freecharge
Founded	August 2010
Total Downloads	50M+ (on Google Play Store)

Freecharge is a wallet app that is easy and fast to use for payments. You can recharge your phone, pay bills, and send money to friends. It also works with UPI payments and is popular for online shopping.

Freecharge gives good cashback offers and discounts, which users like. It lets you split bills, so sharing expenses with friends or family is simple. Many stores accept Freecharge for payments both online and in shops.

Airtel Money

Mobile Wallet	Airtel Money
Founded	2012 (initial launch)
Total Downloads	50M+ (on Google Play Store)

Airtel Payments Bank Wallet is a special service that mixes a mobile wallet with digital banking. You can pay bills, recharge your phone, or send money using UPI. It gives you more interest on your balance than regular savings accounts.

The wallet works well with Airtel services and gives special discounts to Airtel users. You can also withdraw cash from ATMs without a card, using QR codes. It is safe and trusted for your digital banking needs.

best mobile wallets in India — Mobile Wallets’ Usage in India

Advantages Of Mobile Wallets

Mobile wallets got popular due to the advantages it offers. Here are listed some of the advantages of using mobile wallets in India

1. One-Click Pay

This is one of the most convenient ways to make payments since the user can pay via such wallets. The mobile wallet takes the information from your card (credit/debit) and makes payments directly or adds money to your wallet. This has offered easy accessibility to users.

2. Multiple Features and Uses

With easy accessibility, it can be used anytime, anywhere. These mobile wallets can be used in a jiffy, it’s just that you need a proper internet connection for your device. Also, your single mobile wallet account can be accessed on any of your devices like laptops, PC, or smartphones with authenticated verification.

3. Robust Security Features

Mobile wallets have tried hard to provide extensive safety and security. Almost more than half of the population has shifted from leather wallets to e-wallets for the protection of their money. Mobile wallets have also reduced the chance of daily theft or losing cash.

4. Several Benefits

They come up with several other benefits like loyalty programs, cashback, rewards, shopping benefits, and many more so that their customers stay happy. Simultaneously, users can also save money through heavy discounts and offers.

Mobile Wallet vs Digital Wallet

	Mobile Wallet	Digital Wallet
Definition	Mobile wallets are payment apps housed on mobile devices, like smartphones and wearables.	Consumers using digital wallets, may or may not interact with them on their smartphones.
Uses	Consumers mostly use a mobile wallet for in-person transactions.	Consumers mostly use a digital wallet for online shopping or purchases.
Examples	Some of the most popular mobile wallets are Apple pay, Samsung pay, etc.	Some of the most popular digital wallets are Paytm, Paypal, etc.

Limitations Of Mobile Wallets In India

Besides the advantages Mobile wallets in India offer in the payment service industry, it has some limitations which are listed below.

A limit is set on the amount that you can deposit in your mobile wallet. For instance, Paytm allows the amount of ₹20,000 in its wallet.
The number of merchants listed or having a tie-up with these wallets is limited. In that case, you would always need to carry some cash in urgency.
Sometimes, Infrastructure issues stand for a lot of lost transactions or common ‘server down’ problems.
Few times, some fraud calls can also cause a possibility of a mobile theft where your personal information is compromised.
One of the major concerns is that a person needs a smartphone to make online transactions possible and that too, with good internet connectivity. This alone has stood a major limit to many poor families, who still carry cash in their pockets.

More than 40% of respondents used a smartphone in India.

While these large numbers and large user bases indicate the growing need for secure, faster, and efficient transaction methods for the online marketplace. Regardless of what we’ve seen and read, top e-wallets in India have outweighed its concerns. The use of e-wallets has constantly increased due to obvious reasons and its surprising offers. Mobile wallets continue to gain prominence in smartphones and laptops across the globe and have dominated the discussions of new ways to pay.

FAQs

What is a digital wallet and how does it work?

A digital wallet sometimes called an e-wallet, is a service that allows you to pay for things, usually through a mobile phone app. It also stores a number of other items a traditional wallet would hold, such as a driver’s license, gift cards, tickets for entertainment events, and transportation passes.

What is a digital wallet used for?

A digital wallet (or e-wallet) is a software-based system that securely stores users’ payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.

Which is better PhonePe or Google pay or Paytm?

Experts suggest that all three digital transaction apps, more or less, are equally secure. While Google’s brand image definitely does some good to Google Pay. Paytm, and PhonePe continue to be easy picks for others due to their many features.

How to get PhonePe cashback?

Steps to get PhonePe cashback:

Download PhonePe App.
Do the needful for PhonePe Login / Signup.
Set Your Virtual Payment Address (VPA)
Click On Bank Accounts From Menu &Link Your Bank Account.
Recharge Your Mobile.

Paytm has the largest market share in India followed by PhonePe and GooglePay.

What is the difference between Paytm vs PhonePe?

Paytm Allows transactions across multiple modes like wallets, UPI, and payment gateway. PhonePe has started its wallet service but it is widely used for its UPI-based transaction which doesn’t charge you for any transaction.

Which wallet app is best in India or write a few Mobile wallet examples?

The best mobile wallets in India are:

Paytm
Google Pay
BHIM Axis Pay
PhonePe
Mobikwik
Yono (SBI)
Citi MasterPass
ICICI Pockets
HDFC PayZapp
Amazon Pay

July 16, 2025

UPI transactions Fall by 20% due to Lockdown, Lowest in 12 Months

Due to the lockdown imposed to contain the spread of COVID-19, UPI has recorded transactions of less than one billion for the month of April after 12 months of constant growth. This is the first time in the past seven months that UPI volume went below the one billion mark. According to the National Payments Corporation of India (NPCI), UPI has registered 0.99 billion transactions amounting to Rs 1,51,140 crore(Rs 1.51 trillion).

Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI can be used through various apps like Google Pay and PhonePe to make direct payments from one bank account to another.

The lockdown imposed by government due to COVID-19 has caused everything to shut down or just semi-operational. The coronavirus outbreak has devasted many sectors of human life, let it be financial sector, industrial sector, etc. resulting into economic crisis. Yet, India’s success with unified payments interface (UPI) has continued to bring essential services to consumers amid the lockdown as well.

Though the government was able to transfer the relief money through UPI in the bank accounts of crores of Indians, UPI witnessed 20.8% drop in volume and a 26.7% fall in value as compared to the previous month. As corona effect, UPI had registered a little drop in payments volume in March resulting from 1.25 billion transactions worth Rs 2,06,462 crore or Rs 2.06 trillion.

Moreover, along with UPI, NPCI’s real-time payments service IMPS has also registered a sharp fall in volume as well as the value of transactions. In April, IMPS processed 122.47 million payments worth Rs 1,21,140.79 crore which is almost half of the previous month. In the previous month i.e. March, the figure was 216.82 million transactions worth Rs 2,01,961.70 crore.

The decline is shocking as in February 2020, the RBI governor, Shaktikanta Das, had highlighted that digital payments accounted for almost 97% of the daily payment system transactions in terms of volume. He also mentioned that digital payments had accelerated by 50% in terms of volume in the last five years.

However, UPI body NPCI’s CEO Dilip Asbe said,
“ For the last five years, the number of transactions of UPI has been growing continuously month-on-month. But now there has been a slight drop in the volume due to the lockdown. The drop in volumes is due to near-zero restricted spends such as on e-commerce, travel, and similar online platforms. We expect volumes to pick up soon.”

Reasons behind the Drop in Transactions

It was anticipated that a nationwide lockdown to curb the spread of the Covid-19 pandemic would affect the digital payment volumes. However, financial experts were assured that digital payments will not get affected adversely but rather continue to grow as people would rely on digital transactions to avoid physical contact.

During the initial days of the lockdown, e-commerce, foodtech, grocery as well as other online platforms were unable to operate. This led to gradual fall in transactions but later the government had allowed essential services to continue. Moreover, payments to PM-CARES via UPI have been the driving force behind UPI’s growth which is still 20.8% drop and these numbers are only in a few million.

Yet, transactions did not comeback to the normal as government only allowed transactions on essentials. Hence, a majority of e-commerce services are still waiting for government orders. Soon, the government is likely to relax the norms for e-commerce platforms and allow them to deliver non-essential goods as well.

According to payment gateway Razorpay’s digital transaction report, for the month of April the transactions in the logistics have dropped by 96%, the travel sector has declined by 87%, food, and beverage by 68% and groceries by 54%. In the last 30 days, transactions in cities like Ahmedabad, Mumbai and Chennai took a hit of 43%, 32% and 25% respectively. The report recorded transactions between, when the lockdown was announced.

Razorpay’s report also stated that UPI emerged as the most popular digital payment method from March 24 to April 23, with 43% of the total transactions during the period. It was followed by card payments with 39% and net banking with 10%. However, compared to previous month, transactions through UPI declined by 37%, cards by 30% and net banking by 28%.

Government has asked people to prefer Contactless Payment

Travel Restrictions affected the Digital Payments

The fall in UPI and digital payments is not only because of global and national lockdowns and restrictions on non-essential segments but due to restrictions on tour, travel as well. During the lockdown, people are not allowed to travel by train or aeroplane. This resulted into massive fall in transactions as people cannot book tickets of train or plane.

The report revealed that the metro cities were affected the most and the impact was still limited in other cities and towns. This difference in impact is more significant in metro cities because the number of people travelling by air, especially for work, is also higher in the metros. The report added that leading firms are also processing fewer online and offline digital transactions with air travel, hospitality, and retail being the three most-impacted sectors.

Read More: Coronavirus Impact on Digital Payments Startups

Steps taken to deal with the Drop

As of now, NPCI seems prepared to handle the lockdown. CEO Dilip Asbe said that NPCI can multiple sessions and has a spare capacity to handle the demand. In order to ensure that everything keeps running smoothly, around 5% of the NPCI’s workforce is still going to office.

NPCI has already devised a plan for the situation with due consideration of all the factors. Asbe said that NPCI has received complaints from some businesses about delays in cheque clearing. He added that there could be issues on the last mile. While we are in touch with banks, there might be some issues with uploading because of the lockdown.

These issues are might be hard to resolve now as most of the workforce isn’t available now. However, Asbe said that the main objective here is to keep employees safe. If they are safe, the operations can be managed. There are things we cannot disclose, but there is enough backup in case something goes wrong.

Government is also using UPI technology for facilitating the transfer of money in the bank accounts of beneficiaries within a day under Pradhan Mantri Garib Kalyan Yojana (PMGKY). He noted that besides this transfer of relief funds, the government has been using UPI for transferring monetary perks in various schemes such as Ujwala and MNREGA.

After the success of the implementation of UPI in these schemes, many state governments are now relying on UPI technology to transfer funds under various schemes. Madhya Pradesh government which recently transferred some relief money in the accounts of lakhs of construction workers. PM Narendra Modi has urged people to go for digital payment to ensure safety from the infection.

Also Read: Best Payment Gateways in India for Your Business

Meanwhile, several big names in the Indian startup ecosystem have come forward to appeal. Amitabh Kant, CEO of Niti Aayog and Rajan Anandan, managing director of Sequoia Capital India, have been encouraging people to make online payments. Both Kant and Anandan through social media have emphasised that digital payments are the safest way to make payments to ensure minimum exposure to coronavirus.

May 2, 2020
Everything You Need To Know About NPCI
The National Payments Corporation of India (NPCI) is an umbrella organization for operating retail payments and settlements systems in India. It is an initiative by the Reserve Bank of India (RBI) and the Indian Bank Association (IBA) under the provisions of the Payment and Settlement Act, 2007, for creating a robust infrastructure in India for any kind of retail payments and settlements. Created with an intention to provide a fair infrastructure to the entire Indian Banking system, it is Not-for-Profit in nature and has made it possible to create payments both physically as well as electronically.

National Payments Corporation of India

Management Team

Under the non-Executive Chairmanship of Mr. Biswamohan Mahapatra, a veteran who has served 33 years at RBI, the organization is owned by a consortium of major banks. The Board of Directors consists of nominees from the Reserve Bank of India and from nine core promoter banks.

There are nine main promoter banks in India which are:
- State Bank of India
- Canara Bank
- Punjab National Bank
- Bank of India
- Union Bank of India
- Bank of Baroda
- ICICI Bank
- HDFC Bank
- HSBC
Also read: Razorpay – Facilitating the SME’s with effortless online payment mechanisms!

The corporation portfolio currently includes various services such as:

Unified Payments Interface (UPI)

Unified Payments Interface

Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing, and merchant payments under a single hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

With the above context in mind, NPCI conducted a pilot launch with 21 member banks on 11th April 2016 by Dr. Raghuram G Rajan (ex-Governor of RBI) at Mumbai. Banks have now uploaded their UPI enabled Apps on Google Play store.

The Participants of the service include the payer, payee, remitter bank, beneficiary bank, NPCI, bank account holders, and merchants. Some examples of UPI apps that you may already be using are PayTm, BHIM, PhonePe, Axis Pay, and many more.

RuPay

RuPay

RuPay, which literally translates to Rupee and Payment merged together, is a domestic card scheme launched by NPCI in 2012 to fulfill the Reserve Bank Of India’s desire to have a domestic, open loop, and multilateral system of payments in India . In India, 90% of credit card transactions and almost all debit card transactions are domestic; however, the cost of transactions remained high due to the monopoly of foreign gateways like Visa and Mastercard.

RuPay facilitates electronic payment at all Indian banks and financial institutions. NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.

Lower costs and affordability, customized product offering for Indian customers, interoperability between payment channels and products, and protection of information related to Indian consumers are just some of the advantages of RuPay as claimed by NPCI.
- RuPay Contactless
It is a contact-less technology feature that allows cardholders to wave their card in front of contact-less payment terminals without the need to physically swipe or insert the card into a point-of-sale device. This is an EMV-compatible, “contactless” payment feature similar to Mastercard Contactless, Visa Contactless and the ExpressPay, using RFID technology. All three use the same symbol. Contactless can currently be used on transactions up to ₹2000.

RuPay Contactless

NPCI developed RuPay Contactless’s specifications are open standards, interoperable, scalable, and can be adopted by all card schemes. RuPay Contactless (Transit as well as Retail) offers the unique proposition of one card for all payments. This card can be used for transit payments (bus, metro,cab etc.), toll, parking, small value offline retail payments, as well as normal day to day retail payments.

One Card Many Benefits

Bharat Interface for Money (BHIM)

Bharat Interface for Money

Bharat Interface for Money (BHIM) is a mobile application that lets you make quick payment transactions using Unified Payment Interface (UPI). You can make instant bank-to-bank payments and Pay and collect money using your mobile number or Virtual Payment Address (UPI ID). More than 125 lakhs citizens have been using the BHIM app since 2017.

Unlike mobile wallets (PayTM, MobiKwik, mPesa, Airtel Money, etc) which hold money, the BHIM app is only a mechanism which transfers money between different bank accounts. Transactions on BHIM are instantaneous and can be done 24/7 including weekends and bank holidays.

Users can create their own QR code for a fixed amount of money, which is helpful in merchant-seller-buyer transactions. Users can also have more than one payment address. If the 12-digit Aadhaar number is listed as a payment ID, the BHIM app will not require any biometric authentication or prior registration with the bank or Unified Payment Interface (UPI).

At present, there is no charge for transactions from ₹1 to ₹1 lakh. The minimum transaction amount should not be less than ₹1. A maximum of 20 transactions are allowed in a day. Some bank might however levy a nominal charge as UPI or IMPS transfer fee. Currently the fund transfer limit has been set to a maximum of ₹20,000 per transaction, and a maximum of ₹40,000 per day.

The BHIM app currently supports 13 languages (including English), though there are 22 official languages of India (excluding English) under 8th Schedule of Constitution of India. In near future, BHIM App is expected to support all 22 official languages of India along with other regional languages which are spoken widely next to the scheduled languages.

Relevant read: Instamojo – Aiding the Indian MSME’s with effortless payment gateways!

Immediate Payment Service (IMPS)

Immediate Payment Service

Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer system in India. IMPS offers an inter-bank electronic fund transfer service through mobile phones. Unlike NEFT and RTGS, the service is available 24/7 throughout the year including bank holidays.

In 2010, the NPCI initially carried out a pilot for the mobile payment system with 4 member banks (State Bank of India, Bank of India, Union Bank of India and ICICI Bank), and expanded it to include Yes Bank, Axis Bank, and HDFC Bank later that year. IMPS was publicly launched on November 22, 2010. Currently, 53 commercial banks, 101 Rural/District/Urban and cooperative banks, and 24 PPIi have signed up for the IMPS service.

The participants of IMPS include the remitter (sender), beneficiary (receiver), banks, and National Financial Switch – NPCI.

You can avail the fund transfer service:
- Using Mobile number & MMID (P2P).
- Using Account number & IFS Code (P2A).
- Using Aadhaar number (IMPS).
National Electronic Toll Collection (NETC)

National Electronic Toll Collection

The National Payments Corporation of India (NPCI) has developed the National Electronic Toll Collection (NETC) program to meet the electronic tolling requirements of the Indian market. It offers an interoperable nationwide toll payment solution including clearing house services for settlement and dispute management.

Interoperability, as it applies to National Electronic Toll Collection (NETC) system, encompasses a common set of processes, business rules, and technical specifications which enable a customer to use FASTag as a payment mode on any of the toll plazas irrespective of who has acquired the toll plaza.

FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion. FASTag (RFID Tag) is affixed on the windscreen of the vehicle and enables a customer to make toll payments directly from the account which is linked to FASTag.

FASTag offers the convenience of cashless payment along with benefits like savings on fuel and time as the customer does not have to stop at the toll plaza. The program is currently live on 415+ toll plazas across the country. As per NHAI, FASTag has unlimited validity. 7.5% cashback offers were also provided to promote the use of FASTag. Dedicated Lanes at some toll plazas have been built for FASTag.

*99#

*99#

*99# service has been launched to take the banking services to every common man across the country. Banking customers can avail this service by dialing *99#, a “Common number across all Telecom Service Providers (TSPs)” on their mobile phones and transact through an interactive menu displayed on the mobile screen. Key services offered under *99# service include sending and receiving inter-bank account to account funds, balance enquiry, and setting/changing UPI PIN besides other services.

*99# service is currently offered by 41 leading banks and all GSM service providers. It can be accessed in 13 different languages including Hindi and English. *99# is a unique interoperable direct to consumer service that brings together diverse ecosystem partners such as Banks and TSPs (Telecom Service Providers).

It is a common technology platform developed by NPCI which allows banks and TSPs to seamlessly integrate with each other and provide banking services to customers at large over mobile phones (basic as well as smartphone).

Features of *99# service include:
- Use of USSD as the access channel that works across all GSM handsets (smartphone or otherwise), making it reach the last mile user.
- Supports menu-based applications that are easy to maneuver for the users.
- Does not require data connectivity (works on signaling channel) and this makes it a high availability service.
- Round the clock availability (works even on holidays).
- Accessible through a common code (*99#) across all GSM operators and mobile handsets.
- Additional channel for using BHIM app and a key catalyst for financial inclusion.
Must read: Everything You Need to Know About Unified Payments Interface

Bharat Bill Pay

Bharat Bill Pay

The Bharat bill payment system is a Reserve Bank of India (RBI) conceptualised system driven by the National Payments Corporation of India (NPCI). It is a one-stop ecosystem for payment of all kinds of bills, thus providing an interoperable and accessible “Anytime Anywhere” bill payment service to Indian customers with certainty, reliability and safety of transactions.

Bharat Bill Pay has multiple modes of payment and provides instant confirmation of payment via an SMS or receipt. It offers myriad bill collection categories like electricity, telecom, DTH, gas, water bills etc. through a single window. In future, biller categories may be expanded to include insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice payments, etc. An effective mechanism for handling consumer complaints has also been put in place to support consumers regarding any bill related problems in Bharat Bill Pay.

BHIM Aadhaar

BHIM Aadhaar

BHIM Aadhaar pay is an Aadhaar based payments interface which allows real time payments to merchants using the customer’s Aadhaar number and authenticating him or her through biometrics. BHIM Aadhaar Pay Merchant Incentive Scheme was effective from 1st April, 2017. The end date of BHIM Aadhaar Pay Merchant Incentive Scheme was 31st March, 2019.

Merchants can initiate transactions where customers pay money using their Aadhaar number and authenticate the transaction using their biometrics for the goods and services purchased. To be able to effect the same, the merchant should have an Android mobile with the BHIM Aadhaar app installed and a certified biometric scanner attached with the mobile phone/kiosk/tablet through a USB Port or with Micro-ATM/POS, mPOS. The customer and merchant should have their Aadhaar number linked to their bank accounts.

Merchant can view the transaction for its status, whether it was a successful transaction, pending transaction, or a failed transaction. Customers can pay using their Aadhaar number and biometrics at merchant locations where BHIM Aadhaar Pay is accepted.

The merchant enters the customer details and amount in his or her BHIM Aadhaar Pay App and the customer provides his biometrics on the Merchant App after selecting the bank.

Limit on Value of Transaction: The per transaction limit is Rs. 10,000 (as the maximum incentive is capped at Rs. 50 at 0.5% of the transaction value) The maximum incentive which can be earned by the merchant in a month is Rs.2000. The BHIM Aadhaar Pay enabled merchant will receive the incentive between one to seven days after the date of transactions (the merchant should check with their banks for further details).
April 29, 2020