PhonePe vs. Google Pay vs. Paytm: Which App Offers the Best Features & Value?

Digital payments in India are growing rapidly, with UPI transactions crossing 14 billion in July 2024, according to NPCI. If you run a business outside the big cities, choosing the right payment app can feel overwhelming. The app you pick can make it easier for your customers to pay, encourage repeat purchases, and even help you manage your sales more efficiently.

Most businesses rely on three main platforms: Phonepe vs Google Pay vs Paytm. Each offers different tools, rewards, and features that can impact your store’s growth. 

In this guide, we will compare these apps to help you understand which one suits your business best. We will also show how Shiprocket Checkout can simplify payments, increase conversions, and give your customers more ways to pay conveniently. 

What Distinguishes PhonePe, Google Pay, and Paytm? 

Understanding the differences in PhonePe vs Google Pay vs Paytm can help you choose the right payment app for your business. The table below highlights each platform’s strengths and ideal use cases.

Platform	Key Features	Best For	Additional Notes
PhonePe	– Largest UPI platform in India (490M users, 2024)  – Cashback, reward points, bill payments, insurance & gold options  – Supports multiple Indian languages	Businesses targeting smaller towns or customers seeking incentives	Encourages repeat customer engagement through rewards and local language support
Google Pay	– Fast, simple, secure UPI transactions  – Integration with Google Ads, Gmail, Workspace  – Scratch card rewards	Online-first, tech-savvy, urban customers	Ideal for businesses serving frequent online buyers; boosts engagement via rewards
Paytm	– Merchant suite: wallet, UPI, POS, lending, loyalty programs  – Strong offline presence with QR codes & retail partnerships  – Small business credit and loans	Physical stores or businesses needing full payment & credit tools	Encourages repeat purchases via loyalty programs; supports business growth with loans and POS integration

Key Insight for Sellers

• PhonePe works well if your goal is to increase transactions through rewards and regional language accessibility.
• Google Pay is best for speed, security, and integration with Google’s ecosystem, particularly for online-first businesses.
• Paytm is ideal if you need comprehensive tools for payments, credit, POS, and customer retention, especially for physical stores.

Which Payment App has Better Transaction Rates and Perks?

For small and mid-sized sellers, understanding costs and benefits is crucial for maximising profits and customer engagement.

Transaction Fees

• UPI (PhonePe, Google Pay, Paytm): Most merchant-to-person and person-to-person transactions are free, making UPI ideal for high-volume, low-cost payments.
• Wallet Transactions (Paytm): Merchants may incur charges when transferring wallet balances to their bank account.
• POS Devices (Paytm, PhonePe): Transaction fees usually range from 0.4% to 2% depending on the type of card used.

Rewards and Cashback

• PhonePe: Offers cashback and reward points for bill payments and shopping, helping drive repeat transactions.
• Google Pay: Provides scratch card incentives, which can motivate customers to complete payments more frequently.
• Paytm: Includes Paytm First Rewards with benefits like flight booking discounts, enhancing loyalty for regular customers.

For businesses that process large volumes of low-cost UPI payments, all three apps perform similarly, making any of them a viable option. However, if your business requires additional tools such as POS devices, merchant accounts, or access to financing, Paytm offers clear advantages that can help streamline operations and support growth. 

On the other hand, businesses that rely on consumer incentives and rewards to drive engagement and repeat purchases will benefit more from PhonePe or Google Pay, as their cashback schemes and promotional features are designed to encourage frequent transactions and build customer loyalty. 

What Distinct Tools Do These Platforms Deliver to Users and Companies?

Each platform provides specific tools that help sellers manage payments and grow their business:

PhonePe

• Multilingual support in 11+ Indian languages.
• Insurance and wealth management products.
• Merchant collection solutions.

Google Pay

• Integration with Google Ads and Workspace.
• Secure, reliable UPI payments.
• Trusted by brands for both domestic and international transactions.

Paytm

• Wallet, UPI, POS devices, and small business loans.
• Business app for settlements and cash flow tracking.
• Integrated marketplace for eCommerce.

Brick-and-mortar stores benefit most from Paytm’s POS tools, while online-only businesses find PhonePe and Google Pay easier to integrate.

How to Identify the Best Platform for your Payments and eCommerce Service

Choose a platform based on your business needs and customer base:

• PhonePe

Best for sellers whose customers are in smaller towns or prefer local language options. Its rewards and cashback features help increase adoption and repeat purchases.

• Google Pay

Ideal for businesses seeking a fast, simple, and secure UPI payment method, especially for urban or tech-savvy customers.

• Paytm

Suitable for sellers who need an all-in-one solution with wallet, UPI, POS devices, financing, and customer loyalty features.

Relying on only one payment app can limit conversions, as customers often prefer having multiple payment options. 

How does Shiprocket Checkout Help eCommerce Payments?

Shiprocket Checkout simplifies payments by bringing multiple options into a single experience. Sellers can:

• Offer customers a choice of payment methods, including UPI, wallets, cards, BNPL, and COD at checkout.
• Reduce cart abandonment and increase conversions by up to 20%, based on case studies.
• Compete with larger brands by providing trusted and convenient payment gateways, even outside major cities.
• Integrate easily into existing websites or storefronts with minimal coding.

Instead of worrying about whether customers prefer PhonePe, Google Pay, or Paytm, Shiprocket Checkout handles all options, providing flexibility and driving higher sales.

Conclusion

Choosing the right payment app depends on your business and customers. PhonePe is best for rewards and regional language support. Google Pay is ideal for making fast and secure transactions with urban customers. Paytm provides a wallet, POS devices, financing, and loyalty tools.

Integrating Shiprocket Checkout lets you offer all these options in one place, building trust, reducing checkout drop-offs, and increasing sales. It also supports insurance, covering shipments, returns, and cash-on-delivery risks. Offering flexibility and protection encourages repeat purchases and helps your business grow efficiently.