Google launcher Tez-VS-Paytm wallet apps – The battle of Digital Payments

By John Dave

Google launcher Tez-VS-Paytm wallet apps – The battle of Digital Payments

No doubt that Google is enhancing its hand in almost every sector starting from AI or smart cars to retail marketing, from all kind of restaurants to travel agencies Google is everywhere. Google Tez is one of the latest entrants in the mobile payment applications in India. The Google Tez payments app has been designed to make it easier for the users to transfer money which they made a foray into the mobile payment industry. It started a cold war between the houses of Google and Paytm Wallet Apps to tap a $500 billion industry.

There was hush-hush in the Indian market about the possible launch of Google’s Tez application to make the digital transaction more simpler. When Google announced the launch of Tez, it makes a major blow to the apps like Paytm wallet.

The mobile app (TEZ) is supported by India’s Unified Payments Interface (UPI) backed by the National Payments Corporation of India (NPCI).  A user can be able to make instant transactions without any charge. There are various more features and comparisons of the Tez mobile app with Paytm wallet app given below which is going to change The Game of Digital Payments in India.

The main concern is that it is not easy to compare directly between these two apps because the way they work is different, though both enable e-payments. So, to get the right answer to the major question which one is better — Google Tez or  Paytm, you first give a quick look at how the two apps work.


The Google Tez can be found on the Play Store and on iOS devices. Tez is not going to store your money. Instead, Google Tez connects to your bank account using Indian government Unified Payment Interface (UPI), which is an interface that allows money to be moved from almost any bank account in India to any other account immediately and in real-time. All you need to link your mobile number to make direct payments from your bank accounts. There are over 50 banks which are the part of UPI, including big banks like Axis, SBI, HDFC, and ICICI. If you have an account in any of these banks, you can easily connect that account to the Google Tez app. You do not need an account number and IFSC code of that bank. The phone number will act as a Virtual Payment Address. Then, whenever you want to make a transaction and if you have money in your account your payment will be done by filling up the details of the recipient. Thus by launching Google Tez, mobile wallet app developers have a chance to fish in this large market.

But on the other hand Paytm is different. It doesn’t use UPI. When one user installs Paytm – an online mobile app, its mandatory to create a Paytm account. This account then becomes an e-wallet where a certain amount of money (the monthly limit for regular users is Rs 20,000) can be deposited. This e-wallet needs to be recharged using a debit card, credit or through Paytm authorized recharge points when e-wallet money is finished. When you make the payment through Paytm, the money doesn’t move from a bank account to another bank account rather it moves from a Paytm e-wallet to other Paytm e-wallet. Of course, this money can then be moved to a bank account but a Paytm user has to follow a separate procedure for that which differs with Google Tez.

The internet search giant is eyeing on India’s digital payment pie. With the use of Tez, you can pay for movie tickets, bills, DTH to various fees, just as you pay with apps like Paytm wallet. Already, Tez has partnered with RedBus, PVR Cinemas, Domino’s Pizza, DishTV, and Jet Airways which would accept payments via Tez. All these mobile payment apps however it is Google Tez or Paytm, it is sure to say that those help to make India as well as the whole world cashless and digitalized.

Why Google Targets to make India cashless?

India is rapidly turning into a lucrative market for the payment sector. Government is pushing for a cashless economy to curb the flow of illegal money and stem corruption. With the demonetization back in November 2016, The volume of digital transactions jumped from 1.3 million to 3.2 million now and is expected to touch 5 million by the year-end,.According to a report on digital payments in India, total payments via digital instruments are expected to touch $500 billion by 2020.  That accounts for 15% of the country’s total GDP!  

Now you can understand why apps like Paytm wallet or Tez is gearing up to match the shift in consumer habits and enhances infrastructure. By 2022, 80% of India’s urban population is expected to adopt digital payments. With an estimated growth in infrastructure and 5 Point of Sale (PoS) machine by December 2017–70% of the retail will be adopting the apps like Paytm or Tez.

Indian payment industry will be expecting to touch worth $500 billion by 2020 

According to 2017 report of RBI, a staggering sum of 41.3 billion INR exchanged using UPI platform in August compared to 27.2 billion with mobile wallet application development. But as per transaction UPI scores 16.6 billion and mobile wallet application development scores 89.7 million.

The Game of Digital Payments Begins

When Indian audience was engaged themselves in the TV to watch the epic war-series, Game of Thrones and so on – Google and apps like Paytm wallet were gearing up to begin a new battle.“The Game of Payments.” with Tez Google joins India’s growing e-payment market which is ruled by the other apps likes  BHIM, Paytm, Freecharge and PhonePe. Although it might be tempting to say that the Tez is yet another payment app at a time when so many companies, as well as government organisations, are trying to make India cashless. Google Tez and the Paytm Wallet app has some unique features. But the big deal with the Tez is that it is a Google app and it has the full force of Google’s money and resources behind it where Paytm is also very trustful digital payment app which can be installed from play store in any kind of your android smartphone or iPhone. So Tez, the greatest mobile wallet application, is a sheer threat for the current leader Paytm and other players like MobiKwikPhonePe etc.

Benefits of using E-wallet like Tez or Paytm

 The plastic money transfer app Paytm has set a good wallet limit for KYC customer (25k) & Non-KYC customer (20k) both. It transfers money from one account to another account at any time at nominal charges (currently 2.04%), though Google Tez does it with no charges facility. Especially the most interesting feature is that if you have made any transaction through Paytm you can easily get back your money in Paytm wallet in case of product cancellation at partners store as it is refundable.

      Google says that Tez app is not behaving like Paytm. According to Techcrunch, Tez sets the limit of Rs. 1, 00,000 on the transaction amount in a day and up to 20 transactions in a day. Tez is also offering a separate Tez Business App, for business users with a limit of Rs 50,000 per month with UPI and without any fees. (After one crosses this limit they will be charged.)

       Again, you can also pay someone with the Tez app even if he or she has not installed it, but has a valid UPI address. You just need to add the address of the person’s UPI to confirm your payment is done. On the other side, Paytm wallet app has not yet those facilities. Though RBI has been open up to them, the kitty has not been out of the bag.

Security is Something that Comes First

Users first need to download the Google Tez app. After getting started, one has to link the bank account with the same phone number or sync it with the Google Account. Then you need to enter the phone number at first. Here you need to set up a Google PIN, which is required every time you open the application. Google installed a ‘Tez Shield’, which is a multi-layered security feature and ensures data security on the app. The company says “The Tez Shield works 24/7 to help detect fraud, prevent hacking, and verify your identity. Each transaction is secured with your UPI PIN and the app is secured with a Google PIN or your screen lock method such as fingerprint”.  It is also noted that in case something goes wrong, customer support is almost provided here. But with Paytm, you cannot link up a bank account with protection like fingerprints or pattern lock, except those OTP verifications.

Payment and Cash Mode

Apart from this, there is another new feature that Google has introduced. While a lot of other UPI-based apps are present in the country, Google has offered a totally new feature in Tez. This includes ‘proximity’ payments. This feature enables users to carry out ‘cash’ transactions. There are two types of digital payment modes in Tez app — cash and payment mode. The major portion of the app is covering with the option ‘Tap for Cash Mode’. On tapping, you get two options — Pay and Receive. You can select whether you are making a payment or receiving a cash. It will look for devices nearby and will show the details of the person. This basically means that users need not reveal their mobile number nor their bank account details. All you need to do is click on the ‘Cash’ button in the Google Tez app and follow the instructions. The cash transfer feature can be compared with the ‘Bluetooth’ sharing system. This type of a system is currently unavailable on most of the smartphone apps.

                       As for payments you can add contacts on your phone if they have installed and registered your account on Tez or have a valid UPI address. It will help you to make payments or ask your friend for money from any corner of the world even if there is no availability of any banks. Indeed mobile wallet app developers who worked on apps like Paytm does not come with such verities options.

Options like Rewards and Offers

To make sure that more people fall for the app, Tez is offering you and your friend, who is not in touch with this app still now, with Rs. 51 after downloading the app. This amount will be paid when your friend makes their first payment. You can invite and add as many people you want, but the offer is limited to April 1, 2018, and Rs 9,000 in one year. Also for the first week, for every payment above Rs. 50, you will get a scratch card so that you may win a lucky draw of Rs. 1 lakh every week. You will also get this Tez Scratch Cards (TM) in the app and can win up to Rs. 1000 for every eligible transaction. Paytm is also here to offer you such rewards and coupons. By making every transaction through Paytm you can also find cashback offers.

App with Multi-lingual Support

To grab a huge share in the digital payment industry of India, Tez strikes the national chord of sentiments. The mobile wallet app developers have worked to support several numbers of Indian languages such as English, Hindi, Bengali, Gujarati, Kannada, Marathi, Tamil, and Telugu. That gives an essence of a particular app made for the natives and it is obvious that sending money to become easily understandable.

Which one should I chose

Given the fact it is clear that both Tez and Paytm work differently, you will have to decide which one will be more useful and effective payment mode for you. Right now Paytm has an advantage when it to comes to e-payments. It is accepted in more places and is really convenient. Nowadays more business companies are using it and hence you can make payment at more shops and services using the Paytm app. But on the other hand, if you primarily want an app to share money with your friends or transfer your money from bank accounts to other accounts, then the Tez works better in this field than Paytm.     

And since Paytm enjoys a lion share in the market, it is still in a safe position and might not worry about losing its foothold. But Google Tez launched some new features which you cannot overlook. Paytm confirmed earlier in the month of May that they will roll out UPI based payment in August, but yet there is no confirmation from their side. Even the recent news from Digit also tells that Google Tez may support ‘pay by Aadhaar’ soon! So it’s the time to pull the breakers.

Hope Paytm is hearing the alarm and will be soon in the game with some new actions! Overall, UPI does seem like the future of e-payments in India. So it is possible that in future Tez if it keeps up, may go past Paytm. But right now, Paytm is a more useful e-payments app.

So if you have any idea about on building such a kind of apps or want to join the league in the battle for digital payment in India. Contact our sales team – sales@openwebsolutions.in.

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