Google Tez vs Paytm and other digital payments apps: How are they different

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September 18, 2017 2:26 PM

Google has launched the Tez mobile application, to add to the numerous apps including Paytm, MobiKwik, and government's own Bhim app.

google tez, paytm, digital wallets, google paytm, paytm google tez, google tez app, google tez mobile app, google, google india, tez app india, tez app download, google tez download, payments service, digital payment serviceThere are some key differences between Google Tez and other payments services like Paytm. (Google/Reuters)

Google Tez is the latest entrant in the mobile payment applications in India. The technology giant has launched the Tez mobile application, to add to the numerous apps including Paytm, MobiKwik, and government’s own Bhim app. The Google Tez payments app has been designed to make it easier for users to transfer money, other users, as well as for payments at businesses which enable digital transactions. The mobile app is supported by India’s Unified Payments Interface (UPI). It enables users to instantly make transactions at no charge. There are several interesting features in the Tez mobile app and they are similar to most other payments apps present here. However, there are some key differences between Google Tez and other services like Paytm.

Bank accounts vs Digital Wallets: Tez is not in direct competition with other digital wallets like Paytm and Mobikwik. This is mainly because it only works with customers bank accounts. As of now, the mobile app supports 55 banks in India, and they include ICICI Bank, State Bank of India and HDFC Bank. Tez basically enables customers to carry out payments in three ways. First one is the through UPI ID. UPI is a government supported system of digital transactions. Once you get the ID of a person, all you need to do is just input the code and make the transaction. You can also pay through a QR code mode. Here you will be able to scan and make the related payment. This process is a bit similar to the QR method on Paytm. And finally, you can also pay using mobile numbers. However, it should be noted that all of the processes require your number to be linked to you bank account number. This is not a necessary feature in other digital wallets, like in Paytm you can just send/receive money on your mobile number itself.

Cash Mode: Apart from this, there is another new feature that Google has introduced. While a lot of other UPI-based apps are present in the country, Google has offered a totally new feature in Tez. This includes ‘proximity’ payments. This feature enables users to carry out ‘cash’ transactions. This basically means that users need not reveal their mobile number nor their bank account details.

Also read | Google starts Tez payments app in India with Rs 9,000 offer; how to download and use

Apart from the three modes mentioned earlier, Google also uses another method called ‘cash’ mode and the proximity feature is used here. This means that users will be able to make transactions if they are closeby. All you need to do is click on the ‘Cash’ button in the Google Tez app, and the instructions will follow. Google says it works based on ‘audio’, so it is probably a new technology which uses sensors and microphones. The cash transfer feature seems like the ‘Bluetooth’ sharing system. This type of a system is currently unavailable on most of the smartphone apps. Meanwhile, it should be noted that Google has also created a special version for businesses, called Tez for Business.

Also read | Airtel Bank launches UPI based payments service: Step-by-step guide on how to use

Google also supports many Indian languages, which gives it an edge over many other digital payments apps. With this move, Google seems to have jumped into the fast-growing digital payments space in India. While it offers a few feature different many other apps, the question remains whether the tech major will be able to keep up with a massive market which is already occupied by many popular digital wallets?

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