WhatsApp Pay vs Paytm vs Google Tez: Which is the best payment app for you?

Digital payments were truly revolutionized in India, with the entry of UPI (Unified Payments Interface). But, demonetization in the country truly gave people a reason, and a purpose to adapt to a cashless payment option.

In a short span, e-wallet companies such as Paytm, and PayU saw a growth in user base. Soon after that, Google entered the race with its Google Tez. And recently, Facebook-owned WhatsApp also introduced a payments service linked to UPI.

But with so many options, which service should you opt for? We break it down.

WhatsApp Payments

The UPI-based WhatsApp Payments is slowly, rolling out to users in India. The messaging service, which has a user base of over 200 million in the country, does have an advantage over the other two services, simply based on reach. Even though WhatsApp Payments is only available to Android users right now, and is still on its way to iOS, it still has a higher number, compared to Google Tez.

WhatsApp Payments allows users to transfer money to WhatsApp contacts within a chat itself. The new ‘Payments’ feature can be accessed from the Chat window in the Attachments menu. You can then click on Payments, which will then prompt you to link to your UPI. Users who haven’t made a UPI account earlier will have to head to a UPI app or the bank’s website respectively. Most importantly, users can only use a bank account which has their Aadhaar Card and phone number linked to it.

Paytm

Paytm is definitely one of most popular e-wallet services we have. Users use the service to pay bills online, DTH recharge and utility bills, movies, shopping and much more. The Payments Bank also offers a ‘Savings Account’ with no account opening charges or minimum balance requirements - users can deposit up to Rs 1 lakh. With ‘Explore Nearby’, you can explore places – retail stores, restaurants, petrol pumps - near you that accept payment through the Paytm wallet.

Also, Paytm lets you purchase products such as clothes or services such as booking flight tickets or train tickets and more. All these features aren’t available in WhatsApp Payments. Making any kind of payments in WhatsApp is fairly restricted to only friends and family.

Google Tez

Google cashed in the e-payments sector with the entry of Google Tez in India. According to a report, Google Tez accounted for 52 percent of UPI transactions in the country. Unlike WhatsApp which allows peer-to-peer, Tez allow users to pay bills and enable transactions with merchants and businesses as well. Additionally, Google Tez is a basic payment app, and not a messenger app. Hoax or fraud messages can be spread via WhatsApp which might result in fraudulent transactions as well. This is less likely to happen with Google Tez.