International Journal of Application or Innovation in Engineering & Management (IJAIEM)

Web Site: www.ijaiem.org Email: [email protected]

Volume 10, Issue 6, June 2021 ISSN 2319 - 4847

A COMPARATIVE ANALYSIS OF TWO

BIGGEST UPI PAYMENTAPPS: BHIM AND
GOOGLE PAY (TEZ)
Dr Meena Sharma
Associate Professor
VES Business School, Chembur, Mumbai

ABSTRACT
In last few years, India has taken a move towards the cashless economy where the payment is made through digital
modes. The revolution in the Mobile and Internet has brought this drastic change in the country revolutionising the
whole industry. A continuous increase in adoption of mobile payments and billing methods has witnessed leveraging
on the wireless technologies in the country.
‘Fintech’ is used to provide digitalised transactions to its users to perform various business tasks in a secured way
using internet based applications. Yet, the success of these application based systems depends on many other factors
like; Ease of use, security option available, Features, etc.
This paper is an attempt to compare the two biggest Unified Payments Interface (UPI) apps BHIM and Google Pay
(Tez) used by the customers. Both these applications are accepted almost equally in the market but still have some
differences which the author has tried to cover in this study with the help of survey conducted in Mumbai region for
their payment services and various factors influencing their decision while selecting these applications.
Key Words: Mobile payments, Cashless economy, Internet revolution, Wireless technologies, digitalised transactions.

1. INTRODUCTION
The evolution of technology brought an immense transformation in carrying out the various financial operations and
procedures. Mobile banking and banking software are the best examples of these developments in financial technology
leading to radical changes in various aspects of finances like; banking, investment, trading, crypto currency and many
more.
The demonetisation in the country in 2016 and innovation of new technology like ‘Fintech’ was a biggest opportunity
for E-Wallets to make their presence felt.Paytm, Mobikwik, Phonepe etc. entered in the market and started grabbing
the market share by offering various services to their customers.
In April, 2016 a pilot survey was conducted by National Payments Corporation of India (NPCI) with 21 member banks
and UPI a real-time payment system application was launched to facilitate transactions between different banks. This
step was a dynamic change in facilitating the customers and financial institutions to make simple, easy and quick
transactions.

Bharat Interface for Money (BHIM): This application was launched by Government of India on 30th December,
2016. It was developed by National Payments Corporation of India (NPCI) as UPI payments app helping users in their
fast, simple, easy and quick transactions and to make the nation a digitally empowered society and bring in Financial
Inclusion in the economy. These Unified Payments interface (UPI) and Bharat Interface for money (BHIM) were the
revolutionary products in the payment system of the country. BHIM creates a unique digital identity to help customers
for cashless transactions through bank account, mobile number, and QR coe. After its launch in 2016, BHIM app has
been actively accepted by 102 patenering banks and been downloaded over 36 million times1.
Google Pay: It was previouslyGoogle’stez launched by biggest search giant Google in September 2017 as NPCI’s UPI
platform. The name is changed and now it’s known as Google Paywith new features added to it increase more
popularity. Those who use Google pay mobile app can send and receive money easily. Money payment can also be
received by someone who is not on Google pay and ne fee is charged for this service offered by Google pay. Using this
application, customers can also do a lot of other things like online shopping, mobile recharge, etc.

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: [email protected]
Volume 10, Issue 6, June 2021 ISSN 2319 - 4847

India with its huge population base of 191 million people after china with 224 million has a great market opportunity
for Fintech companies to tap the market. The number of mobile phone users is continuously increasing in the country.
The following graph -1 is the clear picture of the mobile phone users in last five years.is shown in the following chart:
Chart-1
Percentage of Mobile Phone users with Smart phones

The number of smartphone users have been on a constant rise in last few years crediting the cheap and affordable
smartphones that surfaced on the market along withaffordable data plans. The number which was 199 million in 2015
went up to 378 million in 2018 and users are now ever-more reliable on their smartphones for services, including
financial services.

1.1 OBJECTIVES
 To compare the services offered by the two biggest UPI apps BHIM and Google pay (Tez).
 To find out the various factors influencing in selecting the apps by the customers in Mumbai.

1.2 RESEARCH METHODOLOGY AND DATA SAMPLE

The study is based on both primary as well as secondary data. The primary data is collected using questionnaire method
and secondary data is collected from websites, Journals, etc. The various factors used to find out the influence on the
customers are: Ease of use (Interface), Features, Speed, Security, etc.
The respondents for the survey were selected through random sampling method by sending questionnaire to 150
persons and only 141 responded. So, the analysis is done on the basis of response from 141respondents. The analysis is
totally dependent on the information provided by the respondents.Charts and graphs are used for analysing the data
from the questionnaire.
1. An article on 27th September, 2019 in Tomorrow makers.
1.3 SCOPE OF THE STUDY
A comparative study is conducted for the two biggest UPI based payment apps of the country BHIM and Google Pay
(Tez). The study tries to highlight various factors that influence customers while selecting these apps for their
transactions. The study is sufficient to find out the various factors influencing the customers and selecting the apps.
2. LITERATURE REVIEW
Vidya, Rajan and MdShafique (2019) tried to compare digital wallets to contribute to the design of e-wallets focusing
on their security aspects along with their working procedures. SiddhantGurung (2018) says that Fintech is growing
very fast in the country but in spite of its rapid growth it is at nascent stage in the financial sector and a collaboration
with other traditional financial institutions will provide a new direction. Fintech will help the banking industry in
regaining its lost footing and will make it a dynamic sector. Svetlana Saksonova& Irina KuzminaMerlino (2017)
evaluated fintech’s development in Latvia and compared with Europe by identifying financial services using innovative
technologies offered by fintech companies. Kim, Choi, Park and Yeon (2016) focused on adoption of fintech in Korea

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: [email protected]
Volume 10, Issue 6, June 2021 ISSN 2319 - 4847

and said that convenience and usefulness are influential variables for its usage. VijaiAazhvar (2019) tried to find out
the opportunities and challenges in the fintech Industry and how beneficial are these fintech services in reducing
operational costs and user friendly system will change the habits and behaviour of the financial sector. Al-hakim
(2019) in their paper elaborated the explosive developments in technology and their role in the financial industry in
general and banking sector in particular. JaruneeWonglimpiyarat (2017) explored the Fintech and its dynamic
transitions in the banking industry. Inna Romānova, Marina Kudinska (2016) found that Fintech is an integral part
of the banking system. Alla, Igor, Dyba, Yurii, Yevhenia (2018) discussed the fintech platforms with the EU
standards compliance for SMEs to support their innovativeness and improving their access to finance and financial
processes. Kim, Tae Kyung, Choi, Hoe Ryeon, Lee, Hong Chul (2016) say that Fintech industry is growing very fast
and despite its rapid growth very few studies are done on Fintech technologies as a detailed technologies.

3. COMPARISON OF BHIM AND GOOGLE PAY (TEZ)

BHIM and Google pay both are UPI appsand havea clean and simple user interface. Most of the features in both apps
are similar due to being an UPI app. The uniqueness in their features makes them useful as compared to other payment
apps in the country. Both these apps are good if we consider the speed of the apps but both have different security
mechanism. Google pay (Tez) has Google shield and uses Google pin whereas BHIM app uses passcode.

3.1 Features of BHIM

 BHIM app has QR code –based scan- and- pay option
 It Provides all transaction history.
 Own QR code and UPI PIN can be generated.
 As a security measures, the login expires after 90 seconds of inactivity to minimise fraudulent use of account.
 As long as mobile number is the same, BHIM does not get affected by handset changes or number porting to a
different operator.
 This app helps and supports reporting of customer complaints to the bank.
 It has both English and Hindi languages to boost financial inclusion.
 This app can be used by an individual or businesses for various transactions.

3.2 Use of BHIM app by Consumers:

 To send money at no cost.
 To Scan and pay for purchases, using QR code at shop.
 To pay online for shopping by clicking on‘Pay by UPI’.
 Check account balance and transaction history.

3.3 Use of BHIM app by Businesses:

 Receive payments directly and seamlessly into their bank accounts at no cost.
 Display of the QR code or send it (via digital medium) to enable payments by customers.

3.4 Benefits of BHIM

 It helps to go cashless and helps build a digital India.
 All payments and receivables can be consolidated in a single app.
 It helps in receiving and transferring money directly to bank accounts in real -time.
 Once VPA is created with Mobile number or name; no longer customers have to share account details.
 Its two- factor authentication ensures transactions are safe and secure.
 It is independent of bank working hours so transactions can me made 24x7 all around the year.

Google Pay (Tez)

3.5 Features
 Google pay uses QR system to send and receive money by creating one-time code.
 This app helps customers to make payments for various utility bills like electricity, gas, water, taxes, premiums
etc.
 Google pay has tied up with various leading brands like; Zerodha, Redbus, Tatasky, Goibibo, etc. and payment
can be done for landline, mobile, and brioadband.

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Web Site: www.ijaiem.org Email: [email protected]
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 A new feature called multiple payment options is a very unique feature of this app used by customers.
 Recipients’ bank details and IFSC code is required to send money through this app.
 All old transactions and history can also be seen.
 To attract more customers, this app uses various cash back and reward offers. Inmaking electricity bill payment
assured cash back of Rs 50, referring to friends aboutthe app assures cash back of Rs 51 are offered to the
customers apart from otherbenefits.
 To help eligible customers for loan, this app has also tied up with ICICI Bank, HDFC
Bank and Kotak Bank and customers can directly receive loan offers on this app.

TABLE-1
BHIM Vs Google Pay (Tez)

BHIM Google Pay (Tez)

 Government of  App made by Google
India supported app
 Supports offline payments  Has a cash mode which requires no
personal info to send payments
 Very simple UI; easier than Tez  Good and useful UI
 Provides referral bonus and merchant cashbacks but it is a  Provides rewards and referrals bonus by
limited period offer partnering with vendors
 Supports Aadhaar based payment  Not based on Aadhaar

 Supports 14 languages  Supports 8 languages and trying to

increase more.
 Daily transfer is restricted to Rs 20,000 for a single  Daily transfer is up toRs 1,00,000
transaction and cumulative value of transactions in a 24-
hour period is limited to Rs 40,000.
 BHIM being Govt app fraudulent activity are minimised and  Special security mechanism called Tez
has privacy perspective. shield

Factors influencing in selecting an app

There are variousfactors used by customers for selecting a payment app for use. Some of the influencing factors are
discussed in this study. These factors are: ease of use of the apps, the features of the apps, their speed for transactions,
security feature of the apps, etc.

4. DATA ANALYSIS
Total 150 respondents were sent the questionnaire and 141 responded so, the study is analysed with the information
provided by 141 respondents.

TABLE-2
Profile of respondents

Profile of Respondents (141 number)

Gender Number %
Male 96 68.09
Female 45 31.91
Age
18-29 104 74
30-40 25 17.73
41-55 8 5.67
Above 55 3 2.12

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Web Site: www.ijaiem.org Email: [email protected]
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Education
High School 6 4.25
Graduation 34 24.11
Post-graduation 86 60.99
Phd& above 14 9.92
Occupation
Student 103 73
Service 17 12.05
Business 10 7.09
Housewives 7 4.96
others 3 2.13

Table number -1 is a profile of the respondents selected for the study. The male respondents are more in number than
the female respondents. The age group of 18-29 has maximum number of respondents with 104.Qualification wise
Post-graduation respondents are more in numbers with 86 with a percent of 60.99. Students are more in the study to
respond the questionnaire with 73% and 103 numbers.
CHART-2

Chart-2 is the respondents’ gender details 31.91% are femalesand rest all i.e., 68.09% are males in the study. Out of
141 respondents 96 are male and 45 are female respondents.

CHART-3

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The above chart is about the age group of the respondents in the study. 74% belong to the age group of 18-29 followed
by 30-40 age group with 17.73% (25 in numbers) and 5.67% is between 41-55. The above 55 are 2% i.e., only 3 in
numbers.
CHART-4

The chart no-4 represents the educational background of the respondents. 60.99% respondents (86 in Number) are post
graduate, 24.11% have graduation degree with 34 in number and 9.92% are with Ph.D.(14 respondents) and remaining
4% have studied till high school.
CHART-5

In the study maximum number of respondents are students whom we consider the current tech savvy generation and
use mobile apps for their transactions with 103 numbers. It is 73% as compared to the service people with 12.05%,
Business 7.09%, Housewives comprising of 4.96% in the study and others with 2.13%.
CHART-6

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International Journal of Application or Innovation in Engineering & Management (IJAIEM)
Web Site: www.ijaiem.org Email: [email protected]
Volume 10, Issue 6, June 2021 ISSN 2319 - 4847

This chart is an indication that almost all the respondents in the study are aware of these two payment apps showing
that people are aware of the new technology innovations taking place in the country except 2.13% of the respondenti.e.,
3 numbers who were not using the apps and are not much aware about these two apps. The study showed that they are
housewives.
CHART-7
Do you use any of these mobile payment apps BHIM or Google?

Chart-7 is interpretation that 87.94 % of the respondents use mobile payment apps for their transactions and only 12.06
% respondents don’t use any of these apps for any payment purposes but they are aware of these two apps. They feel
that they are not tech savvy and not comfortable in using any of these apps.
Which mobile app you prefer BHIM or Google Pay?
CHART-8

Chart number -8 is a clear indication that majority of respondents i.e., 84.4% use Google pay (Tez) as compared to only
15.6% of BHIM app.The respondents are in view that BHIM being a government app might not be easy in use and
comfortable and may create problem while using. So they prefer Googelpay.
For what purpose you use these apps?
CHART-9

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Web Site: www.ijaiem.org Email: [email protected]
Volume 10, Issue 6, June 2021 ISSN 2319 - 4847

The above chart is clear indication that majority of the respondents use these apps for cash transfer and utility payments
purposes. 33.33% use for utility bill payment purposes and 31.91% use for cash transfer. 16.31 % respondents say they
use these apps for online shopping, 12.77% use for booking tickets and 5.67% use for other purposes.
How do you rate these apps in terms of easy interface and convenience level?
CHART -10

As for the easy interface and convenience level respondents using these apps selected Google pay 86.53% and BHIM
app only 13.47% i.e., only 19 respondents said BHIM app is convenient and easy interface. The reason could be that
very few respondents use BHIM app and are not aware of its convenience level.
The features and speed of the payment apps BHIM and Google pay
CHART-11

The respondents are happy and satisfied with the features and speed of the apps with85.11% supporting Google Pay
(Tez) as compared to 14.89% of BHIM. It is understood that very few people are using BHIM app and that is the reason
respondents have supported Google pay as it is used by majority of the respondents.
Security of the apps
CHART-12

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Chart no -12 shows that as far as security is concerned respondents think that Google pay is safer than BHIM app with
84.4% of the respondents supporting Google pay as compared to 15.6% of the BHIM app.It was difficult for the users to
say about the security of the BHIM app as they are not using BHIM app.
FINDINGS
 The study finds that 97.87% of the respondents are aware of BHIM and Google pay (tez) apps and 87.94% of
the respondents’ use these mobile payment apps .The study shows that majority of the respondents are using
Google pay app as compared to BHIM app.
 The purpose for using these apps are for bills payment, cash transfer, booking tickets, online shopping, etc.
 Majority of the respondents say Google app is very convenient and easy to use and has good features and speed.
The users of BHIM app are very less during the study but those who are using BHIM app are satisfied with its
features as it is directly linked to their bank account so makes it easy for them to make payment and transfer
money.
 As far as security is concerned respondents using Google pay and BHIM app feel that both the apps are safe.

SUGGESTION OF STUDY
1. Awareness about the BHIM app with its features and security should be done aggressively.
2. The trust of the people in using BHIM app is very important and for that speed and security of the app should be
good.
3. Various media can be used to promote the apps.
4. BHIM should also use various offers to attract more customers like other payment apps do.
5. Issues like privacy and misuse should be handled carefully so that people can trust these apps specially BHIM.
6. Linking of Aadhar card with the payment app should not be mandatory

CONCLUSION
In a world of technology Fintech apps has lots of growth potential and opportunities in the country as the number of
smart phone users and internet users is growing every year. The study reveals thatalmost all are aware of these two
apps and using these and other apps for their payment and other purposes for their transactions. The study found that
both these apps are user friendly and have almost same features but Google pay and other apps provide different offers
which is not there in BHIM app.
Majority of the respondents in the study are using Google pay and very much aware about the features and other
services of Google pay whereas there were very few respondents who has BHIM app and using it.Those who are suing
BHIM app are very much satisfied with the app and others are using Google app and have not shown any interest in
knowing about the BHIM app.
Various studies revealed that the transactions in BHIM has declined in recent times and the reason is the competition of
various payment apps in the market with various features and offers. But still the country has huge market for these
companies to grow as there are many people who aren’t adopting digital payment because they are not tech savvy and
they think that using an app for the payment is more difficult than paying cash.
“Lethargy is the father of innovation, and something we ought to cherish” ….Unknown

REFERENCES
[1] Ahmed T. Al Ajlouni&Monir Al-hakim (2019): “Financial technology in Banking Industry: Challenges and
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ICEAS2018.At: Applied Sciences University, Jordan. 11-12 April 2018.

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Web Site: www.ijaiem.org Email: [email protected]
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[2] AllaIvashchenko, Igor Britchenko, MykhailoDyba, YevheniaPolishchuk, YuliaSybirianska, YuriiVasylyshen

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WEBSITES
 https://www.bangkokpost.com/business/1570190/indias-fintech-revolution
 https://factordaily.com/google-pay-tez-india-transactions-30-bn-run-rate/
 https://www.financialexpress.com/money/whatsapp-upi-payment-vs-google-tez-vs-bhim-app-what-they-offer-
you-check-details/1207913/
 https://www.quora.com/Is-BHIM-app-better-than-Paytm
 https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/google-pay-edges-ahead-in-upi-
sweepstakes/articleshow/69641981.cms
 https://www.slideshare.net/vijay7o/paytm?next_slideshow=1
 https://gadgetstouse.com/blog/2017/09/20/google-tez-paytm-phone-bhim/
 https://en.wikipedia.org/wiki/BHIM
 https://www.orfonline.org/expert-speak/the-weaponisation-of-cashbacks-on-upi-by-google-pay-57099/
 https://www.smeventure.com/fintech-india-opportunities-challenges/

AUTHOR
Dr Meena Sharma is Ph.D in Banking and Business Finance from M.S University of Baroda, Gujarat. She has total 17
years of experience and has published many research papers in various journals. She has written two books and has
awards for outstanding research papers in international conferences. Currently, She is working with VES Business
School as an Associate professor – Finance.

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