Digital payments are growing in every country, particularly in India, especially after the demonetization in 2016. Digital payments have been in existence for many years, even before the demonetization in India; however, they received a significant boost after the event.
When the Indian Prime Minister, Shri Narendra Modi, announced demonetization on 8th November 2016, there was a shortage of cash for some days, causing people inconvenience.
The inconvenience caused was turned into an opportunity by payment service provider companies, who launched payment services such as:
- Google Pay
- Paytm
- PhonePe
- IMPS
- UPI
These payment methods are all a result of demonetization, and later became regular payment methods at most retail outlets. Not only retail outlets, but these payment methods are available for people to pay for their online purchases.
The major benefit of these payment methods is their efficiency. You may wonder what makes us say they are efficient.
The answer is that you are freed from carrying cash as you can pay from your phone by scanning the Quick Response (QR) Code available at the merchant store. Let’s compare them and discuss them all one by one.
Comparative Table – Popular Instant Withdrawal Payment Methods in India (2025)
|
Payment Method |
Launch Year in India |
Key Features |
Average Transaction Time |
Popular Use Cases |
| Google Pay | 2018 | QR code & mobile number payments, linked directly to bank accounts | Instant (seconds) | Retail payments, online shopping, bill payments |
| UPI | 2016 | Inter-bank transfers, no charges for most transactions, 24/7 availability | Instant (seconds) | E-commerce, betting sites, peer-to-peer transfers |
| Paytm | 2010 | Digital wallet, QR payments, integrated bill payments, prepaid/postpaid recharge | Instant (seconds) | Offline retail, utility bills, ticket booking |
| PhonePe | 2016 | UPI-based, supports insurance purchase, bill splitting, and investments | Instant (seconds) | Retail purchases, insurance, mutual fund investments |
| IMPS | 2010 | Inter-bank fund transfers via mobile, internet banking, or ATMs | Instant (seconds) | Bank-to-bank transfers, emergency fund transfers |
1. Google Pay
Google Pay, as the name suggests, is the payment solution from the tech giant Google and currently ranks as the second most-used digital payment method in India. You can pay by simply scanning a QR code or entering the recipient’s mobile number. The transfer is near-instant – the money moves from your bank account to the receiver’s in seconds.
Best for: Google Pay works best when linked to your primary bank account via UPI. You can set payment limits for security, track all your transactions in-app, and even use its rewards system to earn cashback on certain purchases. Many grocery stores, petrol pumps, and even small street vendors now accept Google Pay.
2. UPI (Unified Payment Interface)
UPI is not a single app but a payment infrastructure supported by multiple banking and fintech apps like Google Pay, PhonePe, Paytm, and more. It allows instant, free inter-bank transfers 24/7. Whether you’re paying your electricity bill, splitting dinner with friends, or making a deposit on a betting site, UPI makes it seamless.
Practical Tip: Always keep your UPI PIN private and enable app-based biometric authentication for extra safety. UPI Lite, a newer feature, lets you make small payments without entering your PIN each time, perfect for quick, low-value transactions.
3. Paytm
Paytm has been a pioneer in India’s digital payment ecosystem, launching well before demonetization but seeing explosive growth after it. It offers multiple services in one app – a wallet for quick top-ups, UPI integration, bill payments, ticket booking, and shopping. Many shops display Paytm QR codes because it supports both wallet and UPI payments.
Practical Tip: Keep a small balance in your Paytm wallet for times when internet connectivity is slow – wallet payments often process faster than direct bank transfers in weak signal areas. The app also offers Paytm Postpaid for short-term credit.
4. PhonePe
PhonePe is India’s most-used digital payment app, built entirely on the UPI system. Beyond payments, it provides options for buying insurance, mutual funds, gold, and even paying for services like DTH or broadband. The app’s interface is beginner-friendly, making it a favorite for first-time digital payment users.
Practical Tip: PhonePe allows you to link multiple bank accounts and choose which one to use for each payment, useful if you manage both personal and business accounts. Take advantage of their seasonal cashback offers, which often partner with major brands.
5. IMPS (Immediate Payment Service)
IMPS is an interbank electronic fund transfer system that operates 24/7, including bank holidays. Unlike UPI, which is app-based, IMPS is accessible through mobile banking, net banking, or even ATMs. It’s a reliable fallback if UPI services experience downtime.
Practical Tip: IMPS is ideal for transferring money directly to a bank account when you don’t have the recipient’s UPI details. Make sure you have the beneficiary’s correct account number and IFSC code to avoid delays. Many people also use IMPS for urgent payments like school fees or hospital deposits.
All these payment methods listed above are commonly used in India by merchants and payers to pay for their purchases. These are efficient, allowing you to not carry your wallets along when going outside and pay from your phone.
Where Can You Pay Using these Given Payment Methods?
Digital payment methods have become so widely accepted in India that you can use them almost anywhere, from small local vendors to large online marketplaces. Their speed, convenience, and security have made them a preferred choice for millions of users.
The flexibility of using the same payment app for both offline and online spending has blurred the lines between in-store and digital shopping, creating a truly cashless experience.
Offline and Online Merchants
The advancement of technology has made it possible for offline retailers, including small retail shops, to showcase a QR code from one of the above methods, like Paytm, Google Pay, PhonePe, and others. A payer can scan the QR code and pay for the purchase they made. As a buyer, you not only pay offline retailers using the payment methods discussed, but you can also pay for your online purchases.
Betting Sites or Betting Apps
Sports betting or gambling is one activity that has seen exponential growth in recent years, and you can see all the digital payment methods listed above on sports betting sites or betting apps. With these payment methods, the betting sites are counted among the fast withdrawal betting sites in India. It is all because the digital payment methods, including Paytm, Google Pay, and PhonePe, provide instant transfer.
The instant transfer means that when you end up on the winning side in sports betting, you can quickly withdraw the winning amount directly into your bank account without hassle. The inclusion of these payment methods also gives people a reason to trust.
Skill-Based Online Games
Gambling is not the only activity that people try their hands at to earn a handsome side income, but other skill-based online games can be played to earn quick money. Those games include Ludo, Chess, and puzzle games. There are numerous portals where you can play these games and win handsome money.
You should select the portal to play skill-based online games based on the payment methods. Ensure the payment methods talked about in the article are available on the platform you are planning to play skill-based online games; otherwise, look for another platform.
Conclusion
It can be concluded that digital payments are on the rise, and the rise has seen an exponential surge after the demonetization in India in 2016. In this article, we have talked about the commonly used and trusted payment methods in detail. Moreover, we have talked about where you can use these payment methods to pay for your purchases. We hope you liked reading this article. Share your thoughts in the comments; we’d love to hear from you.
