In line with the Indian government’s “Digital India” campaign, the Indian digital landscape has transformed tremendously. In just the last six years, the share of digital transactions has increased from around 11.26% in FY16 to 80.4%22 in FY22.
With over 100 billion transactions done in just 2023 alone, where are you if you have yet to go digital? Despite these changes and the unprecedented rise in digital commerce, dozens of digital wallets have emerged, each with niche features and pros and cons.
But how can you decide which is the best digital wallet for your needs? Let’s explore.
What is a digital wallet?
A digital wallet stores currency digitally, allowing for digital transactions for goods and services. There are many types of digital wallets, but the most common is the one that offers transactions by utilizing UPI.
Digital wallets were facing a worse time in the second half of the 2010s due to a lack of compatibility with other digital wallets, and this has changed due to the integration of UPI with digital wallets, allowing for unmatched compatibility with other wallets.
Which are the best digital wallet?
What is the first name that comes to mind when you think of digital wallets, probably PayTM or PhonePe? Although they are some of the leaders in terms of Digital wallets, Bajaj Finserv is the best e-wallet payment system I have seen thus far. Let’s list the top 5 best digital wallets in 2023.
- Bajaj Finserv
Bajaj Finserv is a leading e-wallet payment system for all transactions, investments, loans, etc. Bajaj Finserv is a super app for everything financial, from mobile recharges and bill payments to UPI transactions, investments, loans, etc.
Pros
- Its an all-in-one solution for all kinds of transactions.
- It lets you do everything money-related, from buying insurance to securing loans, from UPI to investing in Mutual Funds.
- Seamless and easy transaction
- User-friendly interface
Cons
- You might spend more than you wish to because digital money does not feel like hard cash.
- PayTM
PayTM is the most recognisable digital wallet with a platform that facilitates mobile recharges, bill payments, UPI transactions, and cashback for those transactions.
Pros
- Extensive range of services, making it an all-in-one solution for various transactions.
- Regular cashback offers and discounts enhance savings.
- Widely accepted across online and offline platforms.
Cons
- Transaction failures
- Frequent promotional notifications
- PhonePe
PhonePe is another highly recognised digital wallet system that facilitates mobile recharges, bill payments, and UPI transactions, and offers cashback.
Pros
- Offers seamless integration with bank accounts for instant UPI payments.
- Supports in-app food ordering and bill splitting.
- Provides cashback offers and rewards for transactions made using the app.
Cons
- Limited acceptance at offline stores compared to some other digital wallets.
- Occasional transaction failures
- Google Pay
Google Pay also offers seamless integration with banks for UPI transactions and allows for bill payments and mobile recharges.
Pros
- Provides cashback offers and rewards for transactions.
- User-friendly interface and quick access to recent transactions.
Cons
- Offers fewer features compared to other digital wallets.
- Limited rewards and cashback offers compared to competitors.
- Amazon Pay
Amazon Pay introduces a tight integration with its Amazon e-commerce services. It offers cashback for Amazon orders paid with Amazon Pay.
Pros
- Offers cashback and discounts on transactions, including Amazon orders.
- Provides an easy checkout process for amazon purchases.
Cons
- Limited support for non-merchant transactions compared to other digital wallets.
- It is not as widely accepted at offline stores as some other options.
Conclusion
These are some of the best e-wallet payment system in 2023, along with their features, their pros and cons, and the one I use.
This should give you an idea of which digital app to use for the best benefits in 2023 based on your needs and also other competitors if you wish to switch between them.