Since the time the government has introduced the BHIM app, a handful of banks have also queued up to create their own UPI payment app.
Launched by Prime Minister Narendra Modi on December 30, 2016, BHIM (Bharat Interface for Money) is a mobile application developed by the National Payments Corporation of India (NPCI), built on the Unified Payment Interface (UPI).
Named after Bhim Rao Ambedkar, BHIM app is intended to facilitate e-payments directly via banks and simplify cashless transactions.
The main advantage of BHIM App is that you don’t have to remember the banking details. All you need is a virtual payment address of the payee to make a digital transaction.
Considering the Bhim App is directly linked to bank accounts and is created by the government of India, the app will clearly appear as a more trustworthy option for the Indians.
While the BHIM App is government’s initiative for easy online payments, Paytm has emerged as one of the most widely accepted ways of offline digital transaction. Many other mobile wallet companies such as MobiKwik, Freecharge, PayU Money are likely to take a hit with the growing popularity of the the BHIM app.
Let's take a look at four reasons that makes BHIM App a better payment app for mobile transacations than others such as Paytm.
All In One App For All Bank Accounts:
The biggest USP for BHIM is that it works across all banks and users do not need to use separate apps in case they have multiple accounts in different banks. So, if a user has bank accounts in 3-4 UPI enabled banks, and then BHIM will join all his banking functions, and enable cashless transactions by saving time and hassles of having multiple mobile wallet accounts.
Whereas for Paytm transactions you need to add money to the Paytm wallet via net banking or credit/debit card each time it runs out of money.
No Internet Connectivity Required:
The BHIM App can transfer funds from one bank account to another without an internet connection. For that, you need to dial *99# from a mobile phone, and this will show a welcome screen with seven options - to send money, check your balance, or see transaction history. So, with BHIM app, a non-smartphone user can also do any transaction from anywhere.
Paytm has also introduced a new feature that will allow anyone to make payments using a Paytm wallet without Internet or smartphone. But for transferring your funds from the bank accounts one still needs internet.
Government-backed App Vs Privately-owned Apps:
The BHIM app is backed by the government of India which makes it the most secure and reliable cashless payment option. At present, there are 5 payment options on this app —including mobile number, bank account, IFSC code and Aadhar number.
On the other hand, Paytm is backed by a private mobile internet company One97 Communications. One97 investors list include Ant Financial (AliPay), SAIF Partners, Sapphire Venture and Silicon Valley Bank.
Authentication & Security:
The BHIM app has three level authentications, which makes it more secure option from a customer point of view. The three levels of authentication include device ID or mobile number, the bank account which you are linking to this app, and third the UPI Pin to complete the transaction.
Paytm does not ask for any PIN or password when you are paying using your wallet balance. Hence, anyone can make payments using Paytm balance.
Saket Modi, the founder of Lucideus Tech, the cyber security firm that has been actively working with the government on ensuring the security of the BHIM app says it just a testimonial.
'Soon every single village in India will have a broadband connection. The Indian government is going to come up with even better platforms to make people digitally driven in transacting money," Modi said on the sidelines of BIMSTEC-SAARC Women Economic Forum event.
In the coming days, it would be interesting to see the options government introduces to promote a more cashless economy.