While all the e-wallets in the Indian tech market are running a race which seems to be never-ending, there’s one special app called PhonePe which has taken a unique path and is seem to be doing pretty well among the users who are using it already. Acquired by Flipkart recently, PhonePe is quite different from the traditional wallets and is used for hassle-free remittances into bank account. As the entire country is still recovering from the demonetisation setback, one needs to realise that there are solutions available to make life simpler.

Let’s see how PhonePe stands apart and ahead of the traditional wallets like Paytm, FreeCharge and Mobikwik.

Load money in wallet? Not at all

As you are already aware that the e-wallets present in the market require you to first load money to their wallets and then use their services, it is not the case with the PhonePe app wherein all the transfers take place directly from the bank account. If you pick any other e-wallet, your transactions require three steps- add money to the wallet using credit/debit card or net banking, use the wallet for payment and finally transfer the wallet amount back to the wallet which you might have earned via cashbacks. Coming to PhonePe, it is an excellent implementation of UPI wherein the amount is deducted directly from your bank account and cashback, if any, would go directly to your bank account.

Also, there are additional charges if you transfer amount from any other e-wallet to bank account, charges that go up to 4% per transfer. However, there are no such charges when you use the PhonePe app for digital transactions.

Hassle-free transfers


PhonePe is an UPI-based app, which is directly linked to your bank account. It hasn’t been long when the UPI payments were introduced by the banks in India. What does UPI mean? In UPI payments, IMPS transfers can be done without entering the IFSC and account details, all you need is a UPI name or a banking identity (VPA) or just the mobile number that is registered with the bank. Once you provide it, the amount transfer is instant. Powered by Yes Bank, I was amazed how quick and easy was PhonePe’s integration with my bank account. Once I had registered on the app and chosen the bank, it connected to the bank and an OTP was sent directly from the bank making it an altogether a very secure process. On entering the OTP, my bank account was linked and all that was required now was to set an MPIN and it was done.

There are absolutely no charges involved while using the PhonePe app. You need to ask for anyone’s bank account details nor do you need to provide yours. All you require is the registered mobile number or a bank identity name (VPA). Once your bank account is synced with PhonePe, you would receive amounts directly into PhonePe from the sites associated. As a comparison, let’s say you book tickets on BookMyShow using the Paytm wallet for a 10% cashback. The cashback would come into your Paytm wallet and would be required to be transferred to your bank account at a fee which might be as high as 4%. Similarly, if you availed a 10% cashback using PhonePe, the cashback amount would go right into your bank account with just a drag-and-drop in the app and that too without any processing fee.


With all the convenience that an app provides, what a user weighs the most are the security implementations in the execution of the app. PhonePe keeps security at the top spot and implements the same using MPIN for every transaction. This is simply like an ATM pin that you enter while using your debit/credit cards. In this case, the MPIN is generated and set by the user himself thereby allowing no access to any of the third party apps. With the convenience of the amount transfers, the app still has all the features that you would expect in a traditional e-wallet app- mobile recharge, bill payments, paying to merchants and shopping online.

Higher transaction limits


The transaction limit for PhonePe stands at 1 lakh per transaction daily and 30 lakhs per month. On the other hand, the traditional wallets’ limit stands at Rs. 20,000 in a month until you provide the KYC documents. There are absolutely zero transaction charges for lifetime while the other wallets would definitely charge you for transfers post December 31.

With the high wallet usage in the market in the current demonetisation situation, PhonePe provides a perfect payment platform which a UPI based and zero transaction charges. You need to give it a go to realise how simplified the app is.

PhonePe app is currently available for a free download on the Google Play Store and is yet to debut on the App Store. Interestingly, the app is available in English, Hindi, Tamil, Marathi, Gujarati, Telegu, Kannada & Bengali languages to cash in on a larger audience.