Since demonetisation, the only thing we seem to be talking about is wallets. All over, there are hundreds of people who have suddenly signed up and begun using wallets. While Paytm beat Freecharge in the race post demonetisation, other players like MobiKwik have also joined the fray. Service apps like Ola and telecom providers like Airtel and Reliance Jio have also launched their own wallets! Each day, we see a new wallet crop up in the market and though these wallets slightly vary in features, the overall pricing as well as the functionality they provide is the same. Paytm has made the most out of the race and in most regions, is the most widely accepted payment service. The latest one to join in the wallet craze it seemed is Flipkart’s PhonePe. But then, while it might sound like just another wallet and make you scrunch up your nose, the features of PhonePe are quite different from those of traditional wallets in the market.Also Read - How To Make UPI Payment Without Internet: A Step-By-Step Guide Here

To give a brief gist about PhonePe, what is the app all about? The app, which today is owned by Flipkart was founded by 2 Flipkart ex-executives after they quit the company. However, soon after creation, Flipkart bought over PhonePe, making it a part of Flipkart’s system. While through the move Flipkart got access to their own wallet, it also helped the website have a wallet diffeent than other apps. While in traditional wallets, users can store money in their wallets and make payment through the wallet, and also transfer money to their bank account. The bank acocunt otherwise, is not liked with the wallet and the amount has to be added to the wallet using a credit/debit card or net-banking. Additionally, if the bank account is synced, then there are additional transfer charges from the wallet to the bank account, and these charges are as high as 4 percent per transfer. Also Read - Jobs Galore: Amazon, PhonePe, Others Gear Up For All-Time High Campus Hiring

But then, how is PhonePe different? PhonePe claims to be India’s first UPI based wallet, which means the wallet is linked directly with your bank account. UPI payments have been launched recently by Indian banks which enable a customer to transfer money instantly over IMPS, without using IFSC code or bank account details. The only thing needed is the UPI name or VPA (which is a banking identity) like ABC@bank.com or mobile number and the amount is transferred instantly. This new service can be used for both, making payments as well as receiving payments. It is a charge free service and the only charges you pay will be those levied by your bank, if any. You need not share your bank account details with anyone and all the transactions can simply be done using just a phone number or an account name. You simply sync your PhonePe account with the bank account but even if the account is not synced, you can continue to recieve amounts from Flipkart and associated sites on the wallet. 5 Things Flipkart’s OnePlus 3 sale tiff with OnePlus and Amazon taught the Tech industry Also Read - PhonePe is Charging This Much Processing Fees From Customers For Mobile Recharges. Deets Inside

The one good thing about this wallet is the freedom to sync as many account as one desires and choose the bank you want to transfer funds to. If you have an account in multiple banks, you can generate your UPI name with each and transfer using whichever bank account you want. Additionally, there’s no need to top up PhonePe since the app is directly synced with your bank account. You can simply pay directly from your account and not from the app. This makes it more secure as there is no fear of someone hacking into your account or your wallet getting debited without any reason. Additionally, the app has all the features of a traditional wallet meaning you can recharge your phone, pay bills, shop online and use the app at merchant sites for payments. The transaction cap is Rs 1 lakh per payment which is bigger than that of traditional wallets. Also, each transaction requires an MPIN which is generated and set by the user, restricting access to third party users. The app is currently an Android app and Flipkart is making the most of it. PayPal thinks Paytm copied it’s logo, takes the Indian wallet service to court!

While there is a lot of confusion among the masses regarding demonetisation, the wallets have provided some ease in payments. However, the one downside to these wallets is the merchant might not have the wallet you use and also, at times in poor network areas, it can lead to hassles in paying. Also, there’s always the fear of someone hacking the account and misusing funds. Even if the mobile gets stolen, these apps do not have any security layer to keep the funds safe. At such times, UPI is a great move to ensure hassle free banking and PhonePe is trying to cash in on just that phenomena. Flipkart, with it’s Big Shopping Days sale is pushing PhonePe as much as possible. But then, with Paytm and Mobikwik already owning a slice of the Indian market, will Indian users make the shift to a new wallet, albeit a more secure one?