Before the demonetization, the Indian Financial system was basically a cash-based economy. But after demonetization of older currency notes in the year 2016, the total concept of the cash-based transaction system has changed. The demand for mobile wallet apps like Paytm was got hugely popular during this time due to the shortage of physical cash. Now you will find several mobile top wallet apps in the Google Play Store or iOS App Store with so many offers and features to choose from.
In this article, you will find some best mobile wallet app in India both in the Android or iOS platform based on in-App Offers, discounts, innovative features, and User Interface.
What is a Mobile wallet or digital E-wallet App in India?
A mobile wallet or digital e-wallet is nothing but a digitized version of the virtual bank account with limited transaction facilities. Anyone can open a mobile e-wallet easily just by downloading the app from the Android Play Store or the Apple App Store. The mobile wallet can be integrated with UPI payment service for P2P money transfer or NFC technology for contactless payment service. Some mobile wallet app in India provides a virtual Debit card, which you can use for any e-commerce website across India.
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Features of Mobile Wallet or e-wallet App
- Anyone can open a mobile wallet by installing the app.
- As per RBI guidelines, minimum mandatory KYC documents will be required to operate any mobile wallet in a smartphone. You can not transfer your mobile wallet balance to the bank account if your mobile wallet is not KYC verified.
- Mobile wallet Interoperability for full KYC Accounts. (Allows transactions between mobile wallets)
- Maximum balance Rs.10000 (Nil KYC) and Rs.100000.00 at any point in time.
- Daily transaction limits Rs.10000.00.
- Fund Transfer limit (Varies with the different mobile wallet app providers)
- Mode of Fund transfer – UPI Transfer, Scan and pay QR Code, or Contactless with NFC Technology. (Uses a specific RFID frequency to communicate between two devices)
- Virtual Visa or Rupay Debit card with an option to convert into a physical card with an ATM withdrawal facility.
- Various online offers and cashback options.
- Store your Debit card or credit card details or your social identification details for future online transactions.
More than 55 mobile e-wallet apps are operational now in India, among them 50 are from full-fledged Govt. and Private Banks. Some non-Bank-operated mobile wallet apps are also very popular in India.
Several eCommerce websites in India, also have their own mobile wallet service for instant cashback for their customers.
In our previous article, we have already discussed some best UPI payment apps in India. The basic difference between mobile payment apps and mobile wallet apps is that the mobile payment app only facilitates money transactions between merchant websites and your bank accounts, whereas, in the mobile wallet app, you can keep some money in digitalized form. The digitalized money can be transferred to your linked Bank Account or utilized for future online transactions. For example, Google Pay or BHIM is a mobile payment App that provides only a money transfer facility between two Bank Accounts.
Types of e-wallets in India?
There are two types of e-wallets you will find in the App Store or Play Store, one is a Semi-closed e-wallet and the other is an open e-wallet in India.
Semi-Closed e-wallet: This type of e-wallet is mainly operated by Non-banking companies in India. In this type of e-wallet, the only online transaction for merchant payment is possible. Cash transactions like ATM withdrawals are strictly disallowed for this type of e-wallet. As per RBI directives, you can not transfer your e-wallet balance to your bank account, if you have a semi-closed e-wallet. Some examples of this type of e-wallet are the Mobiwik wallet, FreeCharge e-wallet, Oxygen wallet, BookMyShow digital wallet, Amazon Pay e-wallet, etc.
Open e-wallet: This type of e-wallet app is offered by Banking companies in India with no restrictions on transactions. It’s a kind of virtual payment app with all banking facilities. Money can be transferred to your Bank Account without any restriction. ICICI Bank Pocket, Kotak 811, HDFC PayZapp, etc. are a few examples of this kind of e-wallet.
Best mobile Wallet Apps in India
Here is the list of Best Mobile Wallet App for Android & iOS Phone users in India
- Pockets Digital Wallet App by ICICI Bank
- PhonePe e-Wallet
- PayZapp by HDFC Bank
- Mobikwik Mobile Wallet App
- Amazon Pay
- FreeCharge Mobile Wallet
When it comes to a mobile wallet, PayTM will always come first. Paytm was the first Indian company that revolutionized the concept of e-wallet in India. Paytm was first launched as a simple mobile recharge app but has now transformed into a Payment Payment Bank with its innovative approach. Today Paytm is a household name in India & one of the most popular digital wallet service providers in both rural and urban areas. Paytm is also 3rd largest UPI payment in India accounting for nearly 11 percent of India’s UPI transactions in terms of value.
Paytm has a huge customer base in India, 90% of Indian smartphone users have Paytm installed on their mobile. Paytm recently launched Paytm AI Cloud for developers.
Paytm is undoubtedly the best mobile wallet app in India both on the Android & iOS platforms and ranked first in this list.
PayTM Mobile Wallet Features:
- Highly secure virtual mobile wallet app.
- Now you can link your NH Toll Plazas FASTag with your Paytm wallet.
- Option to convert Paytm Payment Bank Account after Full KYC through Aadhaar Verification or Paper-based verification.
- Virtual RuPay Debit Card with an option to convert into a Physical Debit Card. (Chargeable) International Transaction facility not enabled.
- Unlimited Free money transfer between PayTM wallet to Payment Bank Account. Money transfer from Paytm Wallet to a Bank Account is Chargeable.
- In-app direct mutual fund investment.
- Recharge Google Play using a Paytm e-wallet app.
- Integrated with UPI, unlimited money transfer between Bank Accounts through VPA ID.
- in-app Online e-commerce store (PayTM Mall) with numerous offers, discounts, and cashback offers. For details, visit here.
Download the Paytm Mobile Wallet App for Android.
2. Pockets Digital Wallet App By ICICI Bank
ICICI Banks’ Pockets e-wallet app ranked 2nd in the list as the best mobile wallet app in India. ICICI Bank pockets is a kind of zero-balance virtual Bank Account.
Pockets mobile wallet app is an open-type e-wallet with complete Banking facilities. You can log in to your Pockets e-wallet app with your existing ICICI Bank user id and password or you can create a new Pockets e-wallet account by downloading the app from the Play Store or App Store.
Features of Pockets e-wallet App:
- A complete virtual bank account with the option to convert into a full-fledged zero-balance bank account.
- Contactless payment using ToneTag audio QR technology.
- Option to convert Pockets Digital Wallet to zero balance Digital Bank Account.
- Visa-powered virtual debit cards for online transactions across various e-commerce websites.
- Various offers with merchant websites.
- You can transfer funds to bank accounts, mobile numbers, email IDs, Whatsapp contacts, Google+, or Facebook IDs.
- Recharge Google Play.
- Pay directly using the mVisa and Touch & Pay option.
- Send money using UPI, IMPS, or NEFT.
- Various offers with merchant websites. See details of offers of the Pockets e-wallet app here.
3. PhonePe e-wallet
PhonePe is the number one e-wallet app in India now owned by Walmart. PhonePe is the first money transfer App in India, and will be integrated as a payment option in Walmart India’s “B2B Cash&Carryy Stores”.
PhonePe is basically a BHIM UPI-based app that also offers digital e-wallet service. PhonePe is the official mobile wallet integrated with the Flipkart App. Currently, PhonePe is the largest UPI payment app in India in terms of transaction Value and volume and accounts for nearly 49% market share in India’s UPI payment landscape.
The App has an excellent User Interface & so many in-app features along with an e-wallet service. PhonePe is also the number one digital wallet service provider for small business outlets like tea stalls, vegetable vendors, Kirana Shops, etc.
Features of the PhonePe e-wallet app:
- Number one e-wallet app in India and is integrated with every payment gateway service provider.
- Semi-closed type e-wallet app.
- QR Soundbox for Small Business.
- All types of billers are added to PhonePe App.
- Invest in Mutual Funds, Insurance, or FDS.
- Pay IRCTC tickets using the PhonePe mobile wallet.
- Utility Bill Payments and Credit Card Payments through e-wallet.
- Various offers, discounts, and cashback with merchant partners. See details of offers here.
Download PhonePe Mobile Wallet for Android & iOS.
4. PayZapp e-wallet app by HDFC Bank
A very popular mobile wallet app in India is offered by HDFC Bank. PayZapp is a semi-closed type of e-wallet, you can not transfer your wallet balance to a Bank Account. PayZapp is one of the top Digital Wallet providers known for its excellent cashback and rewards program with various merchant websites in India. If you are an existing customer of HDFC Bank, then you don’t need to provide KYC documents for wallet creation, the PayZapp automatically links the HDFC bank ID to the App.
Features of PayZapp Mobile App:
- In-app Virtual Visa Debit card for online transactions. (Not International Enabled)
- Excellent cashback offers with HDFC Bank Smartbuy.
- Money Transfer through UPI or Scan & Pay.
- Utility Bill Payments through e-wallet.
- Pay credit card bills using the Payzapp wallet.
- Discounts and Money Back Offer with several online stores. For details visit here.
5. Mobikwik Mobile Wallet App
One of the best Mobile Wallet apps for Android & iOS users in India & one of the oldest e-wallet apps in India. You can pay your utility bills with Bharat Bill Pay, integrated with the Mobikwik wallet.
This mobile payment cum wallet app has excellent UI with more than 4.7 scores both in the Android & iOS platforms.
Features of Mobikwik E-Wallet App for Android:
- Earn PayBack Points from mobile recharge or online payments.
- You can integrate the Mobikwik Payment Gateway service into your websites or blog for accepting online payments. For details visit here.
- Numerous discounts and money-back offers on Bill Payments, Mobile recharge, or Movie Ticket Booking. Visit Mobikwik’s offer and deals page for details.
- Pay any type of Credit Card bill.
- In-app direct mutual fund investment option.
- Pay IRCTC tickets using Mobikwik digital wallet balance.
- Instant credit up to Rs.60000 in Mobikwik Wallet (Mobikwik Boost). For details read my earlier article on best Pay Later Apps.
- Pay with the Mobikwik wallet option available with every payment gateway provider in India.
6. Amazon Pay Mobile Wallet
Amazon Pay mobile wallet integrated with Amazon India Official Mobile App. It is a Semi-closed type of mobile e-wallet service only available for Amazon India Customers. You can add up to Rs.1 lakh if your Amazon Pay wallet is fully KYC verified.
Amazon also has recently integrated UPI with its mobile wallet app in India which you can find at Amazon Pay section for an instant online payment solution. Amazon Pay also offers the Buy Now Pay Later service partnering with NBFC.
Your Amazon Pay Digital Wallet has to be in-person KYC Verified to use the Amazon Pay Wallet service. Now, you can complete Amazon Pay KYC digitally via the Google Duo App.
Amazon Pay Mobile Wallet Features:
- You can use Amazon Pay Balance for payment to various merchants outside the Amazon platform.
- Use Amazon Pay Balance for mobile recharge, utility bill payments, and movie ticket booking. For more details on the Amazon Pay Balance offer visit here.
- You can create an Amazon Pay ICICI Bank co-branded Credit card for exclusive Cash Back Offers and Payback reward points.
- Option for creating UPI VPA ID from Amazon Pay App.
Download the Amazon App for Android & iOS.
7. FreeCharge Mobile Wallet
Another excellent and very popular Mobile Wallet cum money transfer App in India. This mobile wallet app has numerous in-app cashback and discount offers for users. FreeCharge Mobile app is one of the oldest Mobile recharge apps in India.
Freecharge is also UPI based money transfer App with numerous in-app features and offers for customers,
This Gurgaon-based Fintech company now has been acquired by Axis Bank.
Features of FreeCharge Wallet App:
- Fast and convenient payment for Utility bills, mobile recharge, gas or landline bill payments, Electricity payments, etc.
- Separate Deals and Coupon section.
- Pay your Credit card bill using the Freecharge App.
- Book IRCTC tickets using the Freecharge wallet balance.
- Best wallet Cash Back offers amongst the e-wallet providers in India.
- UPI money transfer and one-touch QR code Payment.
- Mutual Fund Direct investment.
- Buy insurance products from 6 popular Insurance Providers in India.
To create a FreeCharge Mobile Wallet, you have to provide any KYC documents like an Aadhaar Card, PAN Card, or Passport.
These are some best mobile Wallet apps in India for Android & iOS users. As per RBI guidelines, all mobile wallet has to be KYC verified within August 2019 to continue the wallet facility. But in reality, only a few mobile wallets in India are now completely KYC verified. Therefore, the future of the mobile wallet in India is uncertain. To ease the burden of KYC verification to Fintech firms, Govt has introduced the norms of Video KYC verification and digital onboarding of customers using eSign.
If you have any other recommendations, then, please share your comments below.
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