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Paytm vs. PayUmoney: Which payment gateway will you choose?

Demonetization has now become the necessity of every major or minor economy in the world. 60 years ago no one could have imagined that cash could be replaced with anything, but then credit cards had been introduced and now it seems like payment methods are changing again. Digital or mobile wallets is becoming more and more popular worldwide. India’s push for demonetization and supporting the idea of online payments has made the companies make great developments in this area. Thus, big companies have emerged and choice comes down to two big providers Paytm and PayUmoney.

Paytm an acronym for “Pay Through Mobile” is Indian company backed up and funded by a giant Chinese E-commerce company Alibaba. This collaboration certainly gives Paytm good image and makes it trustworthy and reliable. Moreover, it has already become the well-known name in the market prior to launching mobile wallet and this makes his positions in the market much stronger. Regardless the fact that PayUmoney is quite new to the business, it doesn’t mean they are inexperienced or unreliable. They offer quite a good service. Unlike Paytm they have chosen a specific path and are following it thoroughly and successfully. They are routing their business more towards the payment gateway industry, rather than just a mobile wallet, and happen to succeed in both of them.
The largest consideration people have when deciding upon a mobile wallet and payment gateway industry is the fees.

Fees

PayUmoney
Setting up PayU account is free of charge and there is no AMC (annual maintenance charge) either. Per transaction, it charges 2% + GTS (Goods and Services Tax in India). They also have 1% extra on American Express. You don’t have to pay anything if you want to stop using PayU or want to resume it again. However, they don’t offer international transactions, which could be a problem for some. Also, they offer discount plans for customers whose month of payments proceed 10 Lakh INR (15,730 U.S. Dollars). Such customers become eligible for customized transaction rates.

Paytm
Similarly, Paytm doesn’t charge you anything for setting up an account and for maintaining it. You can do it free of charge. Their honest and transparent pricing includes flat 1.99% + Taxes per transaction. Despite that, it is quite hard to obtain information about their pricing it is very transparent and cheaper by 0.01%.

 

Settlement

PayUmoney
Settlements and transactions to the merchant via PayU take up to 2 business days. It is the maximum time frame. It is anticipated and common time in India. Their transactions from mobile wallet to customer’s bank account are quick. You can see it in your bank account in a few minutes.

Paytm
Paytm offers really fast transactions. It is instant to transact money from your wallet to your account. It happened immediately. However other transactions may take up to 7 working days, depending on the bank and time the transaction is made. Also, it is to be noted that they do the transactions during the holidays.

 

User Experience

PayUmoney and Paytm both are accessible from Android and iOS from phones and they both have websites.

PayUmoney
Their website is more customer friendly and easy to use. You can quickly search through their information about pricing and transaction times. They offer help by FAQs and they have a helpline and 24/7 email support. However, it is not listed on their website, and you can only use FAQs there. In addition, there is no search box, which makes it harder to use. However, their application is easy to use and not very complicated. It just takes few taps to make transactions.

Paytm
Besides this, Paytm isn’t only a mobile wallet company, it offers much more. It has its own online market, where you can buy and sell things and more importantly, Paytm recently came up with “Paytm Payments Bank” which gives you a possibility to get a debit card for making payments and for depositing your money in their bank. This will be authorized by the Reserve Bank of India, so it gives the company a lot of credibility. However, because of these many functions, their website and app is complex. You need time to properly understand what you should do. Their site stores all of their features, like online market and it makes a bit hard to get the concept of it, but once you get it, it’s easy to use all the attributes.

 

Conclusion

It is advisable to go with Paytm, since it will be more beneficial to the consumer in almost all terms of online payments and mobile wallet. It is a major player in the market with almost all the relevant services related to payments. They provide shopping website and their own bank for making transactions which make it more desirable and easy.


Author Bio
PJ Taei is the founder of Uscreen, an easy-to-use VOD platform which enables video creators of all kinds to sell videos online. He has over a decade of experience working with brands and helping them make money online leveraging videos.

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