What’s the difference between PayTM and the BHIM UPI app


The basic difference between PayTM and the BHIM UPI is that PayTM is a sort of an e-wallet whereas with the BHIM UPI app you make bank-to-bank transfers.

When you use PayTM, you first need to have some money in your PayTM account in order to carry out transactions. If you want to pay someone using PayTM, you first need to transfer some amount to your PayTM account from your debit card or your bank account. Only then you can transfer the amount to the other person.

Whether you are giving money to someone or someone is giving money to you, unless that money is transferred from PayTM to the bank account, the money remains within PayTM and you cannot use it outside of the PayTM ecosystem.

With the BHIM UPI app the money transfer happens from bank to bank. Through the app you are directly connected to your bank account. It uses the phone number registered with your bank account to make the transactions. The transactions, as explained in the app documentation, happen immediately and you can carry out transactions 24 x 7.

With the BHIM UPI app the upper limit of a single transaction is Rs. 10,000 and you can transfer Rs. 20,000 in 24 hours.

With PayTM, you can receive up to 25,000 rupees in a month.

Although the BHIM UPI app, as the name suggests, uses the Unified Payment Interface, you can also transfer money to bank accounts that do not support the Unified Payment Interface right now. The app has been developed by the National Payments Corporation of India (NPCI).

With PayTM, as long as you have a PayTM account and the person with whom you would like to transact has a PayTM account, it doesn’t matter which bank account you have, you can easily transfer the money. With the BHIM UPI app, right now, the following banks are supported for sending money:

  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Catholic Syrian Bank
  • Central Bank of India
  • DCB Bank
  • Dena Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • IDFC Bank
  • Indian Bank
  • Indian Overseas Bank
  • IndusInd Bank
  • Karnataka Bank
  • Karur Vysya Bank
  • Kotak Mahindra Bank
  • Oriental Bank of Commerce
  • Punjab National Bank
  • RBL Bank
  • South Indian Bank
  • Standard Chartered Bank
  • State Bank of India
  • Syndicate Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

Although there are no transaction charges when you transfer money through BHIM, the banks may charge for the transfers in the usual manner they do.

Is PayTM better or the BHIM UPI app?

It depends. BHIM UPI allows you to transfer money directly to bank accounts. The transaction is immediate and the extra step of first adding the money to your wallet and then transferring the money, is eliminated.

The problem with PayTM is that it is a different company. Many have started complaining that since it is partly funded by AliBaba.com people may inadvertently end up helping a Chinese company at the cost of some Indian companies.

How do you use the BHIM UPI

  • Go to Google Play and install the app
  • Launch the app
  • Select your preferred language
  • It tells you that all the payments are done using the secure networks of Unified Payment Interface, and the transactions happen immediately, 24 x 7
  • The app verifies your mobile number by sending an SMS (the way WhatsApp and other apps do)
  • It asks for a registered passcode
  • It gives you a list of banks that are supported
  • Select the bank that you would like to use with your BHIM UPI app
  • Once you have tapped on the bank it automatically extracts your bank details because of the registered mobile number

That’s it, you can immediately start using your app to send and receive money.

You don’t have to do anything else. As explained above, with PayTM you first have to transfer money to your PayTM wallet and only then you can transact. But with the BHIM UPI app, as soon as your bank account is connected, you can transfer the money.

BHIM UPI app documentation is also available in Hindi.

About Amrit Hallan
Amrit Hallan is the founder of TechBakBak.com. He writes about technology not because "he loves to write about technology", he actually believes that it makes the world a better place. On Twitter you can follow him at @amrithallan

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