Digital Payments in India – A look at India’s e-Payments Ecosystem

Digital payments in India is getting hectic with a number of players vying for the best. Apply for a digital personal loan by going to

The digital payments scene in India is fiercely contested by a number of participants. Recently, one of India’s popular digital payments company – Paytm, wrote to the National Payments Corporate of India (NPCI), who govern digital payments regulations in our country, about Google Pay’s privacy policy.

Paytm wrote that “We would like to highlight a very important fact that Google Pay, which is an unregulated payments platform, has the scope of using their customers’ data for their monetary gains with complete disregard of the user’s need for privacy. The critical payments data collected by them is being processed and stored outside of India, which can have severe security implications in case of a data breach as their policy states that this data is also being disclosed with advertisers and third-parties”. Courtesy – Business Today, dated Sept 13.

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Paytm accused Google Pay of sharing their customer data with different affiliate companies for monetary gain. Various third party users also use the customer data to send out advertisements and hence misuse the information of trusted customers for monetary advantages. This is not the first time that Paytm has cried foul towards overseas companies violating customer data and privacy. Prior to this, Paytm had stated that, WhatsApp was killing United Payments Interface (UPI) by creating a walled garden.

The central government is still in the process of preparing a personal data protection bill which will mandate the storage of customer data related to digital payment companies in India. The draft regulations, issued in 2018 recommended that customer’s personal data originated within India cannot be stored outside of India. Google’s response to this was that it made use of a common Google account for managing all Google products. This allows the customer to manage or check on risk, spam, and fraud. Google clarified that it did not make use of any individual UPI transactions for monetization purposes (as per Google statement).

Since then, Google got its privacy policy tweaked. They have dropped the word ‘disclosure’ from its privacy clause.

Digital India 2.0

Through enhanced connectivity, widespread social media usage and internet outreach, we have gotten ourselves to think more about data protection in India. India, has also become a lucrative market for overseas companies to cash in on customer data. The following couple of years will get us more clarity on the regulations and its implementation.

Digital payments companies such as PhonePe, MobiKwik and Paytm have already backed the RBI’s decision to supervise the access of data stored with system providers. Till August 2018, close to 92 million customers transacted on Paytm through both their offline and online interface. G Pay, meanwhile has already recorded close to 22 million transactions up until now. India’s e-payments market pie is estimated to grow to close to 1 trillion dollars by 2023 (as per Credit Suisse). Close to 100 players in India (including 60 non-banking) have crowded the e-payments ecosystem.

But then, why does Loan Singh have to care about all this? Our customers are salaried millennials. Millennials have found digital wallets to make digital payments to be extremely convenient. A digital wallet is likened to a traditional leather wallet. It is a safer and convenient way to safeguard your money and cards. It stores your personal and financial information in a digitized form. It is an electronic platform that allows individuals to make electronic transactions. Digital wallets allow us to perform offline, as well as online, transactions to merchants who are registered with a digital wallet service provider.

We have seen these same salaried millennials struggle in getting fresh credit through traditional banks. Most of them are rejected a first time loan due to no prior credit history. This happens because banks do not find such individuals trustworthy or simply creditworthy. Loan Singh is ready to take that risk. Loan Singh is a digital lending platform that lets first-time salaried individuals apply for fresh credit even with no credit score. But to mitigate the risks of default, Loan Singh needs the latest 6 months’ bank statement, PAN card and Aadhaar card of the applicant.

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Digital Wallet Payments

The working of a digital wallet is different from that of other card payments. A digital wallet makes use of a Near Field Communication (NFC) controller and antennae to enable mobile devices to send out account information to devices at payment counters. A secure smart card chip on the phone stores and allows access to the account information. All this can be executed via the installed digital wallet application on your smartphone. The communication is not restricted to NFC, but can also be done via web links, QR Code, SMS or even social media.

During the payment process, the shopper is authenticated. Then the shopper has access to the full features present on the digital wallet account. Merchants have to strongly consider their customer base while setting-up a digital wallet service because not everyone will be intending to make payments via digital wallets. In the world of digital wallets, there is not much difference between customers or merchants. It is just an accounting ledger convention wherein the payment from a customer to a merchant is just a database update (as all the money is flowing in the wallet itself). The working of a digital wallet is only effective if the API integration, for merchants, is done properly.

  • It requires effective security and permissions to access your information
  • The wallet can be used to purchase products online or offline
  • A password, QR code, an image or some authentication code is used for security
  • The digital wallet is linked to your bank account
  • Digital wallets allow currency conversions
  • Shoppers can also create an unverified digital wallet at the time of payment
  • It can also be used for authentication. For example: to verify the age while purchasing alcohol

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Digital Wallet Benefits

  • The biggest advantage for customers is convenience – no need to carry cards or cash
  • Makes purchases easy with a ‘tap-to-pay’ approach
  • Enables automatic redemption of offers
  • Allows for enhanced security during transactions due to encryption
  • Faster processing of payments

Digital Wallets in India

You can get in-depth information regarding digital wallets online, but we have put up a brief listing of digital wallets being used in India. They are not listed in any particular order.

Airtel Money

Using this app allows users to easily recharge their Airtel prepaid account or pay their postpaid bills. This wallet can also be used to shop online if your wallet has cash loaded in it. Airtel Money is extremely safe and each transaction or payment can only be authorized via a secret 4-digit mPin.

Citrus Pay

One of the top digital wallets in India, the Citrus Pay wallet offers its customers’ payments options towards businesses. It is reported to have tied up with more than 12000 merchants with more than 12 million transactions a month.


Ask any young millennial and Freecharge is surely one of the apps installed on their smartphone. Freecharge provides an equivalent amount of coupons for every recharge made. This surely goes a long way in saving the amount spent on bills online. A reported 22 million plus users use Freecharge as a mobile payment solution. Freecharge also allows the user to donate money to a registered NGO. Its common e-wallet features include adding money using a credit card, debit card or net banking and instant payments. They also provide discounts to users on transactions.

ICICI Pockets

The ICICI Pockets e-wallet allows its users to connect to their respective bank account for mobile transactions. You can send/receive money, book tickets, recharge online, pay for online shopping and share gifts with friends. It is a fast, convenient and secure e-wallet for mobile transactions. Funds can also be transferred to email ID contacts or WhatsApp contacts.


Oxigen is a Fintech company founded in 2004 and is one of the major providers of digital payment in India. The Oxigen wallet is used for making purchases online and paying bills. Oxigen is considered to be a safe and secure digital wallet which asks a user to input a 6 digit OTP that is sent to the registered mobile number. It covers almost all major banks in India. It provides both online and offline modes. The offline mode allows payment to be made at physical stores such as CCD, Croma, BigBazaar, etc. Oxigen has also tied up with Goibibo, Indiatimes, KFC, eBay, Jabong, Justdial, etc.

Citi MasterPass

Another free digital wallet on the list, Citi MasterPass helps you move through an online shopping checkout process quicker.


Mobikwik e-wallet payments system helps users to store money. They are used to recharge your phone, getting discounts on deals, pay bills, load money using a credit card, debit card, and net-banking; door-to-door cash collection and making third-party purchases.

Mobikwik has tied-up with close to 225000 merchants and has around 45 million customers.

HDFC PayZapp

HDFC PayZapp allows digital payments via one click. You can also compare hotel bookings and flight ticket pricings. You can even buy music and pay your bills via the PayZapp. All you need to do is connect your debit/credit card to the app.


Launched in 2010, Paytm is currently the largest mobile wallet app in India. It allows payment of mobile bills, buying movie tickets, shopping online; transferring money directly to your bank or someone else’s bank account and paying for your Uber journey (with cash back).

Paytm is adopted by SME vendors, rickshaw drivers, and shopkeepers. Such is its reach. Paytm has also tied-up with brands such as LG, Nike, Onida, Sony, Lenovo, Panasonic, and more.

Vodafone MPesa

MPesa allows a secure, fast and convenient medium for making mobile transactions. It is a subsidiary of Vodafone M-Pesa Limited jointly operated with ICICI Bank. The wallet allows redemption or cash withdrawal for its users.


Sweeping the nation since 2016, Jio’s digital payment app – JioMoney, offers easy, fast and secure transactions. The app offers great discount and offers to its users. With more than 162 million reported subscribers, Jio provides the largest internet service in India. JioMoney can be used to make recharges online, book tickets online, transfer and receive money; and also pay for your cabs. It also offers massive discounts and deals on making the first transaction.


Chillr has tied up with close to 55 banks across India. It easily allows management of multiple accounts from one digital wallet. You can make payments for recharging your mobile, book movie tickets online, receive and send money and also avail discounts on transactions.

State Bank Buddy

A product of State Bank of India, ‘Buddy’ is an online wallet that is available in 13 languages. Non-SBI account holders can also send money via Facebook to other bank accounts. It can also be used to book movie tickets and hotel reservations. The cash to wallet can be loaded using a credit card, debit card or net banking. You can also set reminders for due payments.


A product of PayU India, PayUMoney is a payment gateway that allows merchants to collect payments from customers. The mode of payment can be credit cards, debit cards or via net banking. They also offer email invoicing and SMS notifications. It is a safe and secure platform and used across India by e-commerce websites.

PayUMoney is also introduced as a mobile wallet service. The wallet allows its users to perform online transactions. It also offers reward points for every transaction. It also provides a PayUMoney Buyer Protection which ensures the product reaches your designated address.


Juspay Safe is a payment browser that allows users to make online payments fast with just 2 clicks.


Launched by Axis Bank in 2015, LIME was one of the first smartphone apps in India that integrated shopping, payments, integrated wallet, and banking. It also allows users to invest in a deposit and share your wallet.

Ola Money

Launched in 2015, Ola Money is a digital wallet offered by Ola. They are not just used towards making payments for Ola cab rides; you can also use them for purchasing groceries and booking flight tickets.


Launched in 2012, PayPOS is an app that allows small business owners to receive payments easily via debit cards or credit cards. They are also capable of processing electronic transactions.

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About Loan Singh

Loan Singh is a digital lending platform that prides in providing online personal loan or unsecured personal loan to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan. We provide a loan with the best personal loan interest rates. The instant funds, or instant loans, are loans between Rs.50,000 and Rs.5,00,000 taken for purposes such as:

You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement, PAN, and Aadhaar for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Finance Blog’ is one of the best finance blogs in India. Loan Singh is a product of Seynse Technologies Pvt Ltd and is a partner to the Airtel Online Store.

Loan Singh’s Online Presence

Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. You can find us on Loan Singh Facebook, Loan Singh Twitter, Loan Singh YouTube, Loan Singh Pinterest, Loan Singh Instagram, Loan Singh LinkedIn, Loan Singh Blogarama, Loan Singh Google Review, Loan Singh Medium, Loan Singh Reddit, Loan Singh Tumblr, Loan Singh Scoop It, Loan Singh Storify, Loan Singh Digg and Loan Singh Blogger.

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Digital payments in India is getting hectic with a number of players vying for the best. Apply for a digital personal loan by going to

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