With more and more Indians moving to digital payment systems, the payment industry has undergone massive changes. Point of Sales (PoS) machines have been a standard fixture at small business premises for the last two decades. Today, with an increase in mobile internet connectivity and the drive to cashless payment systems, mobile wallets are fast catching up.

Also known as mobile payment apps, these are fast surpassing credit/debit card usage and are slowly replacing traditional payment methods. Here, in this guide, let’s take a look at the top mobile payment apps that are best suited to the needs of small business owners. 

First, let’s get the definitions right, 

What are mobile payment apps? 

Also known as a mobile wallet, it's a virtual wallet where you can store cash. You can use the cash for online as well as offline payments. With the rise in cashless transactions, there are over dozens of mobile wallets in India. Mobile payment apps can be classified into closed, semi-closed, semi-open, and open, depending on the underlying technology.

Why should small business owners adopt mobile payment apps?

As a small business owner, you need to provide your customers with the most convenient payment methodologies. Relying on just traditional payment methodologies like cash or PoS machines is not the best way forward. As your customers shift to digital payment apps, you must adopt these new-age payment methods.  

Here are the top 7 mobile payment apps to consider for your small business. 

  1. BHIM 

BHIM (Bharat Interface for Money) is a mobile payment app that is backed by the government of India. It’s based on the UPI (Unified Payment Interface). Once you download and install this app on your Android/iPhone, you can register for a UPI ID for your bank account, if you don't already have one. You can use this UPI pin to receive payments from customers, which is credited directly to your bank account.

Salient Features:

  • You can use multiple bank accounts in the app and decide which account to receive payments. 

  • Customers can pay you by using a QR code, UPI pin, mobile number, Aadhaar number, or bank account number.

  • The app does not require any registrations with your bank. 

  • BHIM supports thirteen languages. 

  1. Google Pay 

Formerly known as Tez, it’s a digital payment app from Google. It was rebranded in September 2017 and is similar to the BHIM app. It works across all bank accounts that support UPI. Once you download and install the app, you have to connect your bank account. Once your bank account is connected, you can receive money from customers. 

Salient Features:

  • Customers can pay you by using a QR code, UPI pin, mobile number, bank account number, IFSC code, or audio QR code.  

  • Unlike BHIM, it does not offer Aadhaar-based transactions. 

  • Customers can use the cash payment option to securely transfer money to nearby Google Pay users, without having to share their private details. 

  • It has enhanced security that prevents hacking and other attacks on your bank details. 

  • Secure the app using fingerprint or Google Pin. 

  • The UPI pin secures each transaction. 

  • Besides security and convenience, Google Pay also offers a wide array of cashbacks and other rewards, including scratch cards, discounts, etc.

  1. PayTM 

It’s the most popular mobile payment app in India. Started in 2010, it works on a semi-closed model. Customers can easily load money into their PayTM mobile wallet and pay merchants using the QR code. 

Salient Features:

  • It uses 128-bit VeriSign certified encryption for secure payments. 

  • You can also opt to open a savings bank account with PayTM Payments Bank. This savings account has various features like free virtual Rupay debit card, free digital transactions and zero minimum balance. 

  • Customers can send money to you using the payment link (shared by you) or by scanning the QR code. 

  • PayTM offers Buy Now Pay Later feature for ICICI bank customers. 

  1. Phone Pe 

Initially launched in 2016, it was the first UPI mobile payment app in India. It’s now owned by e-commerce giant Flipkart. Phone Pe is powered by YesBank, and as of August 2019, it had a market share of 37.3% in all UPI transaction volumes. You can link other mobile wallets like Airtel Money, Freecharge and Jio Money with Phone Pe. 

Salient Features:

  • It’s one of the most popular mobile payment apps in India. 

  • It offers interoperability among various mobile wallets. 

  • It offers several rewards and cashback offers for transactions carried on the app.

  • It has an intuitive and easy to use UI. 

  • You can connect multiple bank accounts with the Phone Pe app. 

  1. Freecharge 

It’s another popular mobile payment app and offers customers generous cashback and discounts for various transactions. As a business owner, you can link multiple bank accounts in the Freecharge app. The Fintech startup was recently acquired by Axis Bank. 

Salient Features:

  • When you register on the Freecharge app, you can get a UPI id powered by Axis bank. 

  • Share the UPI id or QR code with customers to receive payments. 

  • It offers multiple discounts, offers and cashbacks for payments received and sent. 

  1. PayZapp by HDFC Bank 

It’s another mobile payment app powered by a bank. Thanks to the popularity of HDFC bank, the PayZapp app is top-rated by consumers. It offers numerous cashbacks and discounts as an incentive for customers to use the app.  

Salient Features:

  • PayZapp plans to roll out a proximity payment option like that available in Google Pay. 

  • You can also open a PayZapp business account, separate from your PayZapp personal account. 

  • Share the VPA ID or QR code to receive payments from customers.

  1. Pockets by ICICI Bank 

It’s a UPI mobile payment app as well as a digital wallet offered by ICICI Bank. You can also use the Pockets account as your digital bank account and carry out operations that you do with a regular bank account. 

Salient Features:

  • It comes with a virtual Visa Debit card. You can also request a physical debit card if you require it.

  • Share the QR code or the UPI Id with customers to receive payments. 

  • It uses a contactless payment option to receive payments from nearby devices. 


Upgrade your Payment Methods with Mobile Payment Apps 

As a small business owner, you need to stay on top of trends to provide customers with the best service. With digital payments revolutionizing the way, money is sent and received, providing your customers with a seamless, secure mobile payment option is a must. Compare the features of the seven mobile payment apps listed in this guide, and choose the best one that offers you the most convenience.