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Paytm, Freecharge and BHIM app security features and technical comparison


1. Paytm and Freecharge security features compared

Freecharge and Paytm apps are playing an important role to make India a cashless economy. But many questions regarding these apps strike everyone’s mind. How much are Freecharge and Paytm apps secure? How to use Freecharge and Paytm apps securely? What are the Paytm and Freecharge security features? And which is more secure in Paytm vs Freecharge?

I have compared the security features of Freecharge and Paytm. Paytm and Freecharge security features are somewhat similar. Let’s talk about security features.

2. Freecharge security features VS Paytm Security Features.

Freecharge and paytm are two of the most used e-wallet apps for android.Both these apps are fast and easy to use. But if I talk about security it is not that good. Both Freecharge and paytm apps have many payment options such as wallet money, cards and net banking. The security features of all these options are different. But let’s first talk about logging in



Freecharge and Paytm both ask for registered e-mail id or mobile number along with the password for logging into its app. When you log into any of these apps with your phone for the first time it sends and OTP to your registered mobile number and E-mail. This way it authenticates your mobile phone. But when you log in next time with the same phone it won’t send OTP. Because the phone is already authenticated. Hence, nobody can log in to your freecharge or paytm wallet using any other device unless he knows the OTP. You must not share your OTP with anyone to be secure.


When we transact using wallet money, Freecharge and Paytm both do not ask for any PIN or password. They do not send any OTP also. It is because they want the wallet transactions to be faster. If they ask for PIN or password or send an OTP it will surely take some time. But this makes the apps less secure. It is better to lock your phones with a strong unlocking method.


Both these apps give the option to use credit/debit cards as a payment option. You can add your card in both these apps for faster transactions. This method is more secure than the wallet money. When you make payments using a card it asks for the card number, expiry date and CVV. Then they authenticate the details. If the details match, they send an OTP on your registered number. You must use this OTP to complete the transaction.

Even if you have added a card for faster transactions, they ask CVV to authenticate. And then send an OTP to your registered mobile number.


This is the most secure payment method in Both the apps. When you choose to pay with net banking, both the apps ask for your user id and net banking server. All the transactions are secured with 128-bit encryption. So you do not need to worry about password leak or anything else. However, it is a little bit time-consuming than other two.


Paytm has come up with an amazing feature of setting a password. You can set your phone’s unlocking method as a password for the Pay and Passbook services in Paytm. This can be a turning point for Paytm, as this is a very big change in the world of E-wallets. In order to set the password for these services you first need to set your phone’s unlocking method, if not already.

Now follow below steps within Paytm to set a password.

1.  Make sure that you are using the latest version of Paytm app. If not, update the app from play store.

2.  Launch the updated Paytm app.

3.  Use your login credentials to sign in, if not already signed in.

4.  Tap on the Profile tab.

5.  Find the Security & Settings options and tap on it to access.

6.  You will see an option called Android Security Feature with a slider button. Turn on this option by sliding that button.

7.  It will then ask your PIN/pattern/fingerprint to confirm. Enter the PIN/pattern or scan your finger using fingerprint sensor if your phone has one. Your password is set.

This feature can protect your E-wallet even if you lose your phone. If someone doesn’t know your personal password he or she cannot send money or see your passbook. However, he or she can recharge or pay bills as these services are not protected with that pasword.


Although Freecharge and Paytm apps have some security flaws, you can use these apps securely if you follow some tips.

  • Always log out from Freecharge and Paytm apps after payment. Even though it will take some time but will make your app secure.
  • Do not share your Freecharge or Paytm password with anyone.
  • Do not share your credit/debit details and CVV with anyone. Also, do not share your net banking user id or password with anyone.
  • Do not tell or show the OTP you receive on your mobile number to anyone.
  • Always lock your phone with a strong method such as PIN, password or fingerprint if your phone gives the option.
  • Use android app locker apps to lock these Freecharge and Paytm apps. It will provide additional security to these apps. Read my post best app locker apps for an android smartphone to find the best locker app for your phone.

BHIM ( Bharat Interface for Money) vs Paytm & Freecharge

Indian PM Naredra Modi launched digital payments app BHIM on Dec 30, 2016. The launch of this app is an indication of how serious the Govt. is on pushing digital transactions and move towards cashless economy.

The Aadhaar card based app, which combines the power of UPI (United Payment Interface) and USSD (Unstructured Supplementary Service Data) into one, was launched by PM Modi during Digi Dhan Mela event in Talkatora stadium in New Delhi.

Named after Dr BR Ambedkar, BHIM app has been described as a ‘wonder app’, which will usher in more cashless initiatives, and enable the poor as well the rich to be on the same platform. While addressing the nation, PM Modi said, “Launch of ‘BHIM’ App is significant. In addition to his role in making of the Constitution,Dr. Ambedkar was also a great economist..”

As we used the app, we found the interface super clean, and the usability flawless. Within 10 seconds after downloading the app, the user can transfer money, receive money as well as check his linked bank account’s balance. The app makes a default UPI based payment address: <phone-number>@UPI and allows one customized address; either of which can be made primary address to receiving payments.

BHIM app designed and developed National Payments Corporation of India (NPCI), comes with a simple yet great design. Upon download, it verifies your phone number by sending an OTP. It is built over the UPI and IMPS platforms, thus is able to transfer or pay money instantly with a single click. BHIM has a wallet where you can upload money from your bank account.

Security – BHIM has a passcode setup feature for secure transaction. As it validates your mobile via OTP, it will not work when used through another number or device.

It allows transactions using cards of all banks. Using BHIM you may pay, send or receive money instantly. The best feature of BHIM is that, when using BHIM to transfer or accept money, you will not be charged any transaction or processing fee by card issuing authorities such as VISA & Mastercard.

However, when users logged on to BHIM app, they felt much more improvement to its UI and functionality. The app also didn’t work properly for many. We hope a new updated version will soon be available with all bugs fixed and issues rectified.


After comparing every aspect of these apps. It’s found that BHIM has a little edge over Freecharge. Paytm has a little edge over its competitor Freecharge because of its in-app password. Freecharge should also include this type of security in its app. If it happens, then Freecharge will surely overtake its opponent.

Given that the Govt. gives a little more time on fine-tuning it and working on its user interface a bit, BHIM would be the best option from a user perspective as there are no transaction charges on cards. While Paytm & Freecharge may not charge you transaction fee or processing fee, but using them you will still end up paying money upload and transfer back charges by you card issuer / bank.

Inputs Source: Digital Security And Mr. OoPpSs & Red Newswire Staff.