7 Best Online Payment Apps In India: Benefits And How To Choose Online Payment Apps

Personal Finance

Online payment has made life simpler. You don’t need to go to an ATM or a bank to get cash. With just a few taps, you can pay securely. However, with so many payment apps, it can become difficult to choose the best app that is user-friendly, safe and provides multiple layers of security to keep sensitive information locked. In this article, we have listed the 7 best online payment apps in India of 2022, their features and benefits and things to keep in mind before using an online payment app. Read on!

What Is an Online Payment App? 

As the name suggests, online payment apps are mobile applications that allow users to make digital payments to merchants/businesses. Users have to create their profile on the payment app, which is then linked to their savings/current bank accounts. These store the user’s card or bank information, which the user can access (after providing a One Time Password) to make an instant payment. 

Top 7 Online Payment Apps in India (2022)

1. BHIM (Bharat Interface for Money)

Launched by and managed under the NPCI (National Payments Corporation of India), BHIM is a UPI(United Payments Interface) app just like Google Pay, PhonePe etc. A worthwhile thing to note here is that BHIM is managed by the same entity which launched the UPI technology. Even after being backed by the NPCI, BHIM is not the market leader in the UPI arena. But it works fine enough, plus it has been specially designed to suit the needs of Indian demography. 

2. Paytm

One of the most successful online payment applications in the Indian fintech industry. Paytm offers perhaps the widest range of options one could pay for; from mobile recharge to municipal tax, from electricity bills to school fees and much more.

After demonetisation, Paytm became an everyday thing for many Indians. But since UPI, the payments space has been a little competitive with players like PhonePe, Google Pay etc. Paytm offers both, B2B and B2C payment services.

3. Lazypay

Led by the payment giant PayU group, Lazypay is a BNPL(Buy Now Pay Later) service provider. If you ever find the option of Lazypay while checking out on an e-commerce site, this would mean that Lazypay could pay your bill on your behalf for now, and you could pay back Lazypay after some time later. Using credit provider apps could feel very lucrative, but remember to ensure due diligence at your end. Never spend more than you could pay back, and ensure timely payments towards your BNPL bill.

4. BharatPe

The fintech company which disrupted the B2B UPI payments market. BharatPe offers ‘Offline’ payment solutions for businesses like your local juice shop, pharmacy store etc.

Its offerings include UPI QR Code, and PoS machines(the card swipe machine). BharatPe charges 0% commission on payments routed through their products, allowing small businesses to have all the revenue they make. This in turn encourages businesses to accept cashless payments, as they’re usually hesitant about card payments due to charges linked to them.

5. Cred

One of the latest, yet disruptive financial products in the Indian fintech industry. Cred is a credit card bill payment platform, where one could pay the bills for one or more credit cards at one single point.

One of the biggest features of this application is that apart from providing credit card bill payment service, Cred also informs the users about hidden charges associated with credit cards and their bills. This enables the user to be better informed about the charges associated with the card they are using.

Cred calls itself a club, hence everyone is not allowed in their fraternity. To sign up on this platform, one compulsorily needs to have a credit score of 750 or above.

6. Samsung Pay

Samsung Pay allows you to add your debit or credit card to it, after which you can use Samsung Pay to pay from your credit/debit card at online or offline channels, erasing the need to physically carry your cards with you. This application becomes quite handy for those people who have a lot of cards.

7. *99#

This is one of the most fascinating and lesser-known products of the Indian fintech space. It is not an application, but a feature. *99# could also be called BHIM USSD. This means that by calling this number from their phone, anyone could make UPI payments without any need for the internet. This UPI feature was specially introduced for feature phone users. But it could prove to be helpful for smartphone users as well, in places with bad network coverage.

Note: Using this feature costs ₹0.5 per transaction.

Also Read: What Is eKYC: Documents Required And How To Get It Done Online

Benefits of Using Online Payment Apps

Here are the key benefits that users can avail when using online payment apps:

• Contactless: Online payment apps are convenient for users who do not wish to deal with the hassles of cash or cards. Paying through a digital wallet is often safer and faster than swiping a credit card. One just has to tap on the app and proceed with the payment. It requires little to no human interaction. 
• Fast and efficient: Digital payments are much faster than paying in cash or cards. It takes little time to pay at retail stores or on online shopping websites using these apps. E-payments ensure super fast transactions that are not constrained by one’s time or location. 
• Secure payments: Online payment apps use data encryption or protected code systems to secure the personal information of their users. Most apps offer an added security layer by requiring users to enter a fingerprint, code or PIN to approve every transaction.
• Recurring payments option: One can easily access an online payment app whenever he/she requires it. Most of them offer recurring payment options to users who wish to pay their monthly bills through the apps. The payments are tracked and automated every month, which makes it easier for one to manage their finances.   
• Transparent: e-payment apps offer a transparent mode of payment. They store the details of every transaction, so one does not need to worry about payment records. All payments are done via secure payment gateways, which do not incur hidden charges. 

Limitations of Online Payment Apps

Here are some of the limitations of online payments apps for users to know about:

• Cybertheft: There is a range of strict security measures implemented by most online apps. However, cybercriminals have, time after time, manipulated users to give away their financial data. Many scammers use online phishing links to gain access to one’s e-wallet and engage in fraudulent transactions. 
• Technical glitches: Every online service has its own share of technical problems. The payment servers may face some downtime due to bugs, maintenance or global network issues. Payments done during downtime may get stuck in the payment gateways, which can cause long delays in transactions. 
• Dependent on the internet: As the name suggests, e-payment apps require a stable internet connection to facilitate transactions. It might be difficult to make digital payments in remote areas that do not have access to a data network. Users who rely on payment apps require 24X7 data or WiFi connectivity. 

Things to Consider Before Choosing a Payment App

Here are a few points that users should keep in mind before creating their profile on an e-payment app:

• Security: It is advisable to understand the security measures offered by an online payment app before using it. Most apps require you to link your digital wallet to your bank account, which means you have to let it access your financial information. 
  
  Apps that make too many access requests that are otherwise unnecessary for digital payments should be avoided. Additionally, you should also choose apps that offer multi-factor authentication for payments. 

• Easy User Interface (UI): Online payment apps should be easy to use and understand. One should assess whether he/she can easily figure out the interface of the app and if it facilitates smooth and fast transactions. A confusing UI can contribute to payment errors. 
• Customer Support: Payment apps should offer excellent customer service to their users. Users can face delayed or stuck payments due to technical glitches or network errors. Hence, one should choose e-payment apps that offer fast and efficient resolutions to such problems.  
• Perks and Rewards: To make digital payments more attractive to their users, e-payment apps offer multiple perks for specific transactions. These perks can include discount coupons, free mobile recharges, cashback, etc. It is advisable to choose a payment app that offers rewards that can be easily redeemed. 

Also Read: What Is A Business Credit Card And How To Apply Online?

Final Word

The 7 best online payment apps are popular, easy to use, secure and help make instant payments. Always choose a payment app that suits your needs and see if it is user-friendly.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article. 

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