India is progressing towards becoming a technologically advanced nation, with digitalization permeating nearly all aspects of life, particularly in our payment methods. Let’s discuss the top-notch digital payment banks and E-wallets in the country.
Digital payment banks represent a fresh wave in the sphere of internet transactions. They function distinctively as compared to conventional retail banks. These digital establishments allow you to deposit a sum of up to Rs. 1 lakh, with no reference to credit cards, loans, or any form of credit provision.
8 Best Digital Payment Banks In India
Digital payment banks provide a variety of amenities such as ATM cards, debit cards, internet banking services, and seamless payment options. Given their approval by the Indian government, these digital platforms ensure reliable and safe transactions. The motivation behind introducing digital payment banks in India was to raise awareness of digital banking facilities in remote areas, aiding many individuals in adopting new technologies, safeguarding their money, and crucially contributing to the nation’s economic growth.
Here’s a rundown of some of the top digital payment banks in India:
1. Aditya Birla Payment Bank:
Established as the fourth digital payment bank in India, Aditya Birla Bank now leverages cutting-edge technology to offer its customers an optimal banking experience. It features the NEFT facility and is among the entities sanctioned by the RBI.
2. Paytm Payment Bank:
During the demonetization phase in India, Paytm Payment Bank surged in popularity. Many individuals now comfortably use its issued debit cards. Paytm has introduced unique passcodes for each customer, ensuring money safety. Additionally, customers benefit from a monthly interest rate of 3.5% per annum.
3. Airtel Payment Bank:
Launched in 2016 as India’s first digital payment bank, Airtel Bank is recognized for its vast customer base and dependable services. Payments can be made or received effortlessly via the My Airtel app.
4. India Post Payment Bank:
Operated under the Department of Post, this government-owned bank extends retail banking services to its customers. Leveraging all 155,015 Indian post offices, it ensures reach to remote areas and offers doorstep services.
5. Jio Payment Bank:
A joint venture between the State Bank of India and Reliance Ltd, Jio Bank was the sixth to launch a payment bank in India. It facilitates payment and deposit services, excluding any credit provisions like credit cards.
6. NSDL Payment Bank:
National Security Depository Limited (NSDL) initiated its services in 2018 and has since won its customers’ trust. Its primary objective is to provide account services to individuals while contributing to the nation’s economic growth.
7. Vodafone m-Pesa Payment Bank:
Already popular for its telecommunication services, Vodafone later branched out to digital payment services. Primarily used for depositing money into other accounts, it ensures security via a PIN system linked to the user’s SMS text message system.
8. FINO Payments Bank:
With 400 branches spread across the country, FINO Bank aspires to empower its customers. It embarked on its journey as a digital payment bank in 2017, aiming to reward your hard work with an unmatched banking experience.
Digital Payment Banks – Features
- Users can deposit a cash amount up to Rs. 1 lakh into these banks.
- These establishments charge minimal transaction fees.
- Credit or lending services are not part of their offerings.
- They feature high-interest rates, typically between 4% and 7%.
Digital Payments Banks – Significance
- Digital payments banks offer a secure and straightforward method for conducting transactions.
- Most of the operations are performed via mobile phones, enhancing user convenience.
- Such banks contribute to the elimination of black money and encourage cashless dealings.
- A cashless economy avoids costs associated with printing new currency and replacing worn-out notes.
- The chances of fraud or theft are substantially reduced.
- Most notably, these banks offer a means to reach the rural and underbanked population and provide them with banking facilities.
This digital wallets, also known as e-wallets or mobile wallets, have gained significant traction in the Indian market post-demonetization. They offer a convenient and secure platform to store money and execute cashless transactions whenever needed.
As shopping trends evolve, so do the payment platforms. From reliance on physical cash to debit or credit cards, the shift towards e-wallets is now apparent. These mobile-based virtual wallets, used for cashless payments, are gaining popularity due to their speedy and secure transactions.
6 Best E-Wallets In India
Established in 2010 by Vijay Shekhar Sharma, Paytm is currently one of the top digital wallet apps in India, with over 160 million users. The app has raised a notable 2.2 billion INR from various investors. Paytm operates on a semi-closed model, facilitating e-commerce transactions, money transfers, bill payments, and access to services from the entertainment, travel, and retail sectors. In 2017, Paytm marked a milestone as the first Indian mobile payment app to garner 100 million downloads from the android play store. Its wide acceptance across India gives it an edge.
Known primarily as a search engine, Google launched its digital wallet, Google Pay, which quickly gained traction in the market. It offers trouble-free services to over 25 million active users each month. From sending money to friends, paying bills, recharging phones, to online shopping, Google Pay offers a plethora of facilities. It links to your existing bank account, ensuring your money’s safety and eliminating the need to reload your e-wallet continually.
World-renowned company, Amazon, introduced its digital wallet, Amazon Pay, in 2007 globally, and in 2017 in India. Today, it boasts of more than 33 million users for various online transactions. Initially utilized for purchases from Amazon’s official site, it now offers payments to selected merchants. Users often benefit from cashbacks and discounts. Amazon invested Rs. 300 crore in 2019 to enhance Amazon Pay, subsequently introducing its P2P (person-to-person) payment option.
PhonePe, launched by Flipkart and powered by Yes Bank, is one of the most popular digital wallets in India, boasting over 100 million users within four years of its introduction. This UPI-based payment app offers cashbacks and deals across various outlets, ensuring user data’s safety. Available in multiple languages, PhonePe accommodates diverse user groups. It collaborates with companies like Ola, Myntra, redBus, IRCTC, Oyo, Goibibo, Treebo, etc., for direct bookings via the app.
Launched in 2009 by Bipin Singh and UpasanaTaku, Mobikwik provides a secure platform to store money, linking 25 million users and 50,000 merchants for online dealings. Users can recharge, book travel tickets, pay bills, and make third-party payments via the Mobikwik e-wallet. It also enables the purchase of digital gold, personal loans, insurance, and mutual funds.
State Bank of India launched its digital wallet, YONO, available in 13 languages and open to both SBI and non-SBI customers. The app’s popularity owes much to SBI’s national reach, enabling comfortable digital payments. With YONO SBI, users can transfer money, book movie tickets, hotels, and more.
This comprehensive guide of “Top Digital Payment Banks & E-Wallets In India” should provide you with enough insights to make an informed choice about your digital banking needs. For any further queries or suggestions, feel free to comment, and I’ll be glad to assist.
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