Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • e-Wallet vs Credit Card

    These days people mostly use a e-wallet as it is every convenient to use and they do not have to carry much cash with them. Apart from this, there are lots of credit card users who prefer doing digital payments. However, both credit cards and e-wallets are two different payment modes and they have different deals and offers. Now let us understand how e-wallet is different from a credit card.

    Credit Card

    Credit card allows you borrow money from its issuing bank for a short period to make purchases.


    e-wallet is a virtual digital wallet where you can add money to make purchases without swiping your credit or debit card. From flight tickets to grocery items, you can purchase everything through e-wallet. You can download e-wallet from your mobile’s app store.

    Difference between e-wallet and Credit Card

    Basis of Comparison Credit Card e-Wallet
    Meaning A credit card is a type of card that is issued to an individual to avail certain debt from the issuing bank and earn lots of reward points. However, the spending limit of the credit card depends on the income and the CIBIL score of an individual. An e-Wallet is an application which stores the credential of an individual to make payment in different online portals. An e-Wallet is linked to the bank account of the user through net banking, credit card, and debit card.
    Examples SBI Credit Cards, Kotak Credit Cards, HDFC Credit Cards, Axis Bank Credit Cards, etc. GPay, Paytm, PhonePe, PayPal, etc.
    User Account Credit card users do not require an account to use their credit cards as it is managed automatically through net banking The users have to create an account on the e-Wallet platform before making any payment.
    Reward Points Credit card users receive lots of reward points by making payments through their credit cards. Users cannot earn any reward point on doing any digital transactions through e-Wallets.
    Debt Limit The credit card provides certain facilities to its users to spend more money than the availability in their bank accounts. Users have to add money to their e-Wallets from their bank account to make payments. e-Wallets does not provide any credit limit to its users
    Build a CIBIL Score Using credit cards regularly will help in building CIBIL score Making payment through e-Wallet will not increase or decrease your CIBIL score
    Offline Payments Users can make offline payments through credit cards at the Point of Sale (POS) terminals simply by swiping their credit cards In e-wallets, users cannot make payments offline as they need a stable internet connection and mobile to access it.
    EMI Options If the transaction amount is high then the credit card users can convert it into Equated Monthly Installments (EMI) by using your credit cards. Users cannot convert any transactions into EMI to make payment from e-wallets.
    Offers Credit cards provide reward points, discounts and cashbacks to its users on different platforms Users can only get discounts and cashbacks through e-wallets.

    There are lots of differences between credit cards and e-wallets. The best part about credit cards and e-wallets are that you can use them simultaneously. When making the payment, you will need to choose between using credit and an e-wallet.

    FAQs on e-Wallet vs Credit Card

    1. Is an e-wallet a credit card?

      No. An e-wallet is not a credit card

    2. Does an e-wallet need a bank account?

      Yes. You need to add your bank account to your e-wallet.

    3. What are the benefits of e-Wallet?

      e-wallets are easy to use. Whether you shop online or offline, an e-wallet lets you pay money instantly without even swiping your debit card or credit card.

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