Now Paytm is promoting UPI money transfer as the UPI Payment system is its own platform. But do you know that Paytm has endorsed the UPI system in the last? Before the Paytm, there have been many UPI based fund transfer apps. The Google pay (Tez ) and BHIM is such a payment app. Phonepe is using the UPI platform from the beginning.
You might know that UPI stands for the Unified Payment interface. This is a mobile-based fund transfer platform. Today, it is the cheapest, simplest and fastest fund transfer mechanism. This platform is developed by the government promoted NPCI. A participating bank can use this platform for the fund transfer. The banks can further extend their services to the third party.
- 1 Difference Between Paytm and UPI
- 2 Paytm Business Model
- 3 Paytm UPI Money Transfer Charges
- 4 Paytm UPI Money Transfer Limit
- 5 UPI Cashback and Offer
- 6 Create UPI Address in Paytm
- 7 Set/Reset UPI PIN
- 8 Transfer To Bank Account Through Paytm
- 9 How to Send Money to UPI
- 10 Money Transfer to BHIM, Tez etc.
- 11 Paytm Money Transfer to Bank Account Without Charges
Difference Between Paytm and UPI
There can be some confusion about the Paytm and UPI. People want to know the difference between them.
|It is an e-commerce company which gives payment, recharge and shopping services.||It is a fund transfer platform developed by the NPCI|
|It has its own mobile wallet.||The UPI also has its own app named BHIM App. Nevertheless, The UPI platform is available for everyone.|
|The Paytm uses the UPI platform for giving the fund transfer service.||UPI need an app for the fund transfer. It does not work on its own|
|Paytm also gives UPI fund transfer service free. But mobile wallet service is paid in case you transfer money to a bank account||UPI platform is totally free|
Read More: What is UPI Payment System
Paytm Business Model
In the last few years, the Paytm has stepped into many businesses that is why people are confused. So to understand its business better, you should look at following infographics.
Because of the multiple businesses, it has many competitors in different verticles.
- Mobile Wallet, Recharge, Bill Payments – Phonepe, Mobikwik, Amazon Pay, Freecharge
- UPI Fund Transfer – Google Pay, BHIM, SBI Pay, Phonepe etc.
- Payment Bank – Airtel Payment Bank, Fino Payment Bank, India Post Payment Bank, Aditya Birla Payment Bank, Jio Payment Bank
- E-Commerce – Flipkart, Amazon, Snapdeal etc
Paytm UPI Money Transfer Charges
Initially, the Paytm did not pay attention to the UPI as Paytm itself has become a big name after the demonetization. But now it has to adopt the UPI. Why?
Because UPI transfers money from one account to another, instantly. And for this wonderful service, the UPI platform does not charge a paisa.
People loved UPI. Google lapped it. Facebook is trying hard to ride on it. How can Paytm Avoid it?
Today not only the Paytm, But No other app is charging for the UPI transfer. It is 100% Free. Paytm, Phonepe and others give this service free as it brings the customer to their app or website. Also, the UPI works on a low-cost model, thus every participant is foregoing that little cost.
Paytm UPI Money Transfer Limit
The UPI is a mobile number based fund transfer mechanism. And all the mobile-based fund transfer methods have some limitations, Be it UPI or IMPS.
You can’t transfer more than 1 lakh in a day using the UPI. This limit is applied by the UPI system on your account. Therefore, it does not matter whether you are using only the Paytm app or any other UPI app. The total UPI debit from your bank account can’t exceed ₹1 lakh in a day.
There is also a limit on the frequency of UPI Payments. You can’t make more than 10 payments in 24 hours from a bank account using the UPI platform. This limit is also fixed by the UPI System and applicable on the Paytm as well. Earlier, you could make 20 payments in a day. But the limit was reduced to stop the misuse of the system.
UPI Cashback and Offer
Currently, Paytm is giving two offers for the UPI Money Transfers.
Digital Gold of ₹10
- This offer is applicable for the first time UPI money transfer user on Paytm.
- This offer is valid for the transaction of ₹100 and above.
- The money transfer should be done on the same day when you link the bank account.
- The last date of the offer is 16 November 2018.
- You would get the digital gold of ₹10. Note, There would not be any physical delivery unless the weight of your gold reaches 1 gram.
- You can see this gold in your Paytm Gold account. The Paytm would create a gold account for you If you don’t have the one. You can further purchase gold in this account.
- You can easily sell the gold from your account. The money would come to your Paytm wallet.
- The Paytm claims that 1000 lucky customers would get the gold of ₹500 every day.
Cashback of ₹50 for Referral
- To earn the cashback of ₹50, you have to refer the Paytm to your friend.
- Before referring a friend, you must have done a UPI transfer of at least ₹10.
- You would get the cash back when your friend does first UPI money transfer of at least ₹10.
- The Referee (The person you have referred), would also get a cashback of ₹20 if he/she has done two UPI money transfers on Paytm of at least ₹10.
- No one would get the cash back if the referee has used the Paytm UPI earlier.
- You would get the cashback within 7 days.
- You would not get the cashback if KYC is not completed. Rather, you would get the goldback.
Create UPI Address in Paytm
UPI address is a unique ID which is used to make payment instead of the bank account number and IFSC. By knowing the UPI ID, you can instantly pay to a person. The UPI ID is similar to the email id.
You can create a UPI ID for a bank account through any of the UPI app. The Paytm also gives you the facility to create a UPI ID. Since, Paytm is using the UPI platform through the Paytm Bank the suffix of the UPI ID would be @Paytm, For example, xyz@Paytm.
The Paytm automatically creates a UPI ID for it’s UPI users. It uses your mobile number to create the UPI ID. So your UPI ID would be <your mobile number>@Paytm
Learn More: What is Paytm UPI Address? How To Create it?
Set/Reset UPI PIN
The UPI PIN is the final authentication for any payment. In the last step of UPI Payment, you have to enter the UPI PIN. After the authentication, the payment takes place immediately.
To set this PIN, you have to enter into the UPI section. You can find it by sliding the blue ribbon at the top. Come down and into the bank account section. Tap on the (i) for which you want to set the PIN. In the bank account information page, you would see the option of PIN reset.
To set or reset the UPI PIN, you have to enter the last 6 digits of the debit card, validity date and OTP.
Learn More: UPI PIN in Paytm: How To Create and Reset
Transfer To Bank Account Through Paytm
The Paytm provides an easy way to send money to someone. You can transfer fund from your bank account to another using the UPI Payment facility of the Paytm. Note, the UPI fund transfer facility is only available on Paytm mobile app. You can’t access it on the PC.
- To do this, open the Paytm app and tap on the ‘Money Transfer’. This link is available on the blue band. Don’t tap on the ‘Pay’ as transfers money from the Paytm Wallet.
- Now you have three ways to choose the beneficiary.
- Bank account number – Enter the bank account number, IFSC code and name of the beneficiary.
- UPI ID – You should know the UPI ID of the beneficiary. You may ask it. Every user of the UPI App creates a UPI ID. The UPI ID gets verified when you proceed to the next step. You can see the full name of the beneficiary.
- Contact Number- You can also send money to your contacts on the basis of the mobile number. But they must be also using the Paytm App. You would find the contact number just below the field for UPI ID/bank account number.
- Now enter the amount. You can also send a message to the beneficiary.
- Enter the UPI PIN to authenticate the transfer. The money would be transferred immediately to another account.
If there is any problem related to the payment you can contact Paytm Customer Care.
In the above section, I have given a brief information about the Paytm UPI money Transfers. In the following section, I would give some common queries related to UPI Transfers of Paytm.
How to Send Money to UPI
My reader Santosh from Delhi wanted to know the process of Paytm money transfer to UPI. The question is vague. But I would answer it considering some assumptions.
You can easily send money from one bank account to another using the UPI services of the Paytm. In this transfer, the Paytm works as the facilitator. It uses the UPI platform just like banks use NEFT and IMPS for the fund transfers.
You can’t send the money from Paytm wallet to a bank account using the UPI fund transfer. The Paytm has a separate mechanism for such transfers and it also requires the KYC. The Paytm wallet to bank account transfer is chargeable. The charge would be 3% of the amount.
Money Transfer to BHIM, Tez etc.
Rakhi From the Mumbai wants to know whether she can transfer money from Paytm to Tez or BHIM?
As I have told above the UPI money transfer takes place only between the bank account. The Paytm, BHIM, Tez of Phonepe only facilitate this transfer. However, you can use the UPI ID for making a transfer to the bank account. These UPI ID can be created in Paytm, Phonepe, BHIM or any other UPI based app.
So the answer to this question is yes! you can transfer money to the UPI ID created through the Tez, BHIM or phonepe.
Paytm Money Transfer to Bank Account Without Charges
This question is from the Sudarshan from the Banglore. Sudarshan wants to know that whether the Paytm gives you the facility of money transfer to bank account without any charge.
The answer to this question is both yes and no. If transfer money from one account to another using UPI platform, there would not be any charge. This service is free in every UPI app.
But, if you want to transfer money from the Paytm wallet to bank account, there would be a hefty charge. The charge is 3% of the transfer amount. Thus, if you have money in the Paytm wallet, try to spend it in the recharges and bill payment. You can also do shopping. Don’t try t get it back into the bank account.