Digital payments and mobile wallets have become crucial components of the government’s drive for cashless transactions. The numbers and projections clearly highlight their importance, and the COVID-19 pandemic has only expedited their adoption.
Users now have a wide array of mobile payment platforms to choose from, such as Paytm, PhonePe, Google Pay, Airtel Money, Mobikwik, Amazon Pay, WhatsApp Pay, HDFC PayZapp, and many others.
When comparing Paytm and Airtel Money, it’s important to consider their differences. Both platforms offer good service, a wide range of services, and attractive offers and cashbacks.
They also provide multiple modes of payment, including credit cards and UPI. However, there are distinct variations between the two that set them apart.
Differences between Paytm and Airtel Money
The advent of digitalization has brought about a remarkable transformation in the banking and financial services sector, resulting in a substantial surge in their online presence. Among the noteworthy advancements is the emergence of payments banks, which have revolutionized the way banking operations are conducted. These banks offer a wide range of services, encompassing almost all aspects of traditional banking.
However, it is important to note that they do not extend credit facilities to their customers. Despite their smaller scale in comparison to traditional banks, payments banks have gained significant traction in recent times.
A notable milestone in the realm of digital banking was achieved when Paytm recently launched its very own payments bank, thereby making a noteworthy contribution to the ever-evolving landscape of digital finance.
Paytm and Airtel Money, while both offering digital payment services, have distinct focuses that set them apart from each other. It is worth noting that payment banks, such as these, are not authorized to provide loans or issue credit cards.
However, they do offer a range of convenient and efficient digital banking services that cater to the needs of customers who prefer the ease and accessibility of online transactions.
Mobile Services
Paytm and Airtel Money are exceptional mobile-based platforms that provide a wide array of services to facilitate transfers and remittances. These platforms go above and beyond by offering convenient features such as automatic bill payments, cashless purchases, chequeless transactions through a phone, and direct money transfers to bank accounts.
The best part is that these services are available at minimal costs, as they are seamlessly integrated with the gateway that connects various banks. Rest assured, these platforms are here to assist you in making your financial transactions smoother and more efficient.
Rates of Interest
Airtel Payments Bank is pleased to offer an attractive annual interest rate of 6% for savings account deposits exceeding ₹ 1 lakh. For deposits less than ₹ 1 lakh, they provide a competitive annual interest rate of 2.5%. We believe these rates will help you maximize the growth of your savings.
In contrast, Paytm Payments Bank offers a digital savings account that provides a per annum interest rate of 2.5%, paid monthly. This convenient feature ensures that you receive regular returns on your savings.
Furthermore, we are delighted to inform you that Paytm Payments Bank has partnered with IndusInd Bank to offer fixed deposits. By opening a Paytm Payments Bank FD account, you can enjoy interest rates of up to 5.5%. We are confident that this collaboration will provide you with a secure and rewarding investment option.
Service Charges
Airtel Payments Bank offers free online transfers within the bank. However, for transfers outside the bank, a fee of 0.5% of the transferred amount is charged. On the other hand, Paytm Payments Bank does not charge any fees for online transactions, including IMPS, NEFT, and UPI transactions. All fund transfer services are provided free of cost.
Paytm Payments Bank follows the guidelines set by the RBI for cash withdrawal fees, similar to any other commercial bank in India. In contrast, Airtel Payments Bank charges a fee of 0.65% of the withdrawal amount.
Benefits
Airtel Payments Bank offers a quick and paperless Digital Saving Account. It can be opened using Aadhaar-based e-KYC, requiring only your Aadhaar number. With the Airtel Thanks app, you can open an account in just a few minutes through a video call. Linking your Airtel number to the account provides a secure method of making digital payments. The digital saving account eliminates the need for a minimum balance.
Paytm Payments Bank offers a Digital Savings Account with no account opening fees or minimum balance restrictions. You can enjoy benefits like no account fees, risk-free deposits, and a VISA Debit Card by keeping up to Rs. 2 lakh of deposits.
The account also provides a real-time updated passbook. As per RBI’s guidelines, the aggregate customer balance limit for PPBL customers cannot exceed INR 2,00,000. The bank can book a fixed deposit on your behalf in partnership with IndusInd Bank Ltd, based on your consent.
Bottom Line
Airtel Money and Paytm services are secure in the event of phone loss. The highest level of security and your personal PIN protect all transactions. Though both of these platforms are, undoubtedly, profitable, there are still a few factors that make Paytm more preferable to its users than Airtel Money.
Airtel Money only allows bill payments within the Airtel network, surrendering individual connections is not possible, and changing plans for both broadband and mobile services individually is not an option. Paytm does not have such limitations. In this article, we strive to offer you the best banking solutions to meet your financial needs. Let us know your personal opinion through your comment!
