Google Pay, PhonePe and Paytm all sit on the same UPI rails and follow RBI / NPCI rules, but the way they collect, use and share your data – and the kinds of risks you face – are not identical. For an Indian user in 2026, the real difference is less about “is my money safe?” and more about “who sees my data, how long it’s stored, and when it can be shared with others – including the government or private partners.”
Same UPI, Very Different Data Stories
All three apps are Payment Service Providers (PSPs) built on UPI, so the basic transaction security (PIN, encryption, device binding) is broadly similar and regulated by NPCI and RBI. Where they diverge is data: what they log about you, with whom they share it, and how far they go beyond “just payments” into super-app territory.
Regulation baseline:
NPCI / RBI rules apply to all three for UPI, KYC and transaction-level security.
India’s new Digital Personal Data Protection (DPDP) Rules 2025 now sit on top, forcing all large tech and fintech players to tighten consent, retention, and breach reporting.
Super-app vs “pure” payment layer:
Paytm and PhonePe are closer to “super-apps” with shopping, insurance, investments and more – meaning more categories of personal data, more profiling and more partners.
Google Pay positions itself more as a payment and offers layer integrated with your Google Account, not a full marketplace, but is plugged into the wider Google ecosystem and ad stack.
High-level Risk & Privacy Comparison
Risk & Privacy Snapshot For Indian Users (2026) – Please see the detailed comparison table in the complete post for a breakdown across factors including core model, data collected, data sharing with 3rd parties, government/law-enforcement access, financial protection, scam surface, and overall privacy risk.
What The Privacy Policies Actually Allow
The nuance is hidden in legal language: “processing,” “affiliates,” “service providers,” “regulatory authorities,” and “legitimate interests.” For a normal user, this translates into who can see your data, and for what.
Google Pay India (2025 Terms)
Integration with your Google Account: Google Pay’s India terms clarify that your use of Google Pay services is part of the broader Google services ecosystem, governed by both Google Pay Terms and Google’s general privacy policy. This means behavioural data from payments can, within limits, feed into Google’s analytics and personalisation across services.
Data sharing language:
Shares data with banks, card networks, NPCI and merchants to complete payments and refunds.
Shares with group companies and service providers for fraud detection, security, compliance and offers.
Allows certain data use for marketing and product improvement, subject to your Google Account settings and consents.
Implication: Convenience and cross-device continuity are strong, but you are effectively building a richer Google profile combining financial behaviour with existing search, maps and Android signals.
PhonePe (Privacy Policy 2025)
Regulated PSP with broad sharing carve-outs: PhonePe expressly states it may share personal information with “legally recognized authorities, regulatory bodies, governmental authorities” and other entities when necessary for compliance, investigations, or to protect its interests. This sits on top of sharing with group companies and partners involved in delivering services like insurance, mutual funds and travel.
Analytics and profiling: The policy allows usage data to be processed for service improvement, personalisation and marketing, including offers based on your transaction patterns and app behaviour.
Implication: PhonePe runs deep financial analytics across UPI, investments and insurance, and the Karnataka High Court ruling confirms that user confidentiality cannot override lawful requests in criminal investigations or public interest matters.
Paytm (Main Ecosystem + FORCE App)
Super-app data aggregation: Paytm’s ecosystem spans payments, wallet, bank accounts, credit, investments, ticketing and shopping, and its privacy documents reflect wide collection and sharing of KYC, transaction, and behavioural data across Paytm entities and partners.
Consent-based, but expansive: The Paytm FORCE privacy policy explicitly says personal data “shall never be shared without your consent,” but then lists multiple situations where you effectively give that consent for processing, sharing with group entities, service providers and regulators.
DPDP-era consequences: Under DPDP Rules 2025, if Paytm or its ecosystem leaks or mishandles your data (Aadhaar, PAN, contact details, transaction history), you can now exercise rights to access, correction, erasure and potentially claim significant compensation.
Implication: Paytm likely has the richest view of your financial and shopping life among the three, which is powerful for offers but dangerous in case of breaches or misuse.
Law, Government Access & The DPDP 2025 Reality
The most under-discussed risk is not fraudsters, but how easily your data can legally move to the state or other bodies. This is the critical section:
DPDP Rules 2025 and Big Tech / Fintech: India’s Digital Personal Data Protection Rules 2025 require tech and payment companies to minimise data collection, limit retention, and obtain meaningful consent for processing, while offering rights to access, correction and erasure. However, critics point out that categories of recipients, exact retention timelines, and cross-border safeguards are still opaque, leaving power with platforms.
Broad state powers (Rule 23): Rule 23 allows government agencies to demand personal data from companies on grounds like “national security” or “sovereignty,” without judicial pre-approval and with gag clauses preventing companies from even telling you your data was requisitioned. This applies equally to Google Pay, PhonePe and Paytm.
PhonePe Karnataka High Court case: In PhonePe Private Limited v. State of Karnataka, the High Court held that a PSP cannot refuse to provide transaction data when ordered by a competent authority in a criminal investigation, stressing that “duty to protect data must yield where public interest and criminal investigation intersect.”
Bottom line: No UPI app can promise absolute confidentiality against state or court-ordered access; at best, they can log requests, push for due process, and harden internal controls against misuse.
Practical Takeaways: Which App For What Risk Profile?
For an Indian user who cares about both money and privacy, the real question is not “Which app is safest?” but “Which trade-off am I comfortable with?”
If you prioritise minimal ecosystem lock-in (still Big Tech): Google Pay is attractive if you like a cleaner UI and fewer non-payment services inside the app, but your financial behaviour can still feed into the broader Google data graph unless carefully limited in account settings.
If you want maximum utility and offers (and accept deeper profiling): PhonePe and Paytm give richer cashbacks, investments, travel and shopping features, but they also collect and process more categories of data, often with broader sharing to partners and group companies.
If you worry about data breaches and misuse: DPDP Rules 2025 finally give you enforceable rights and potential compensation (up to high amounts) if a company like Paytm or any app leaks your personal data. In practice, prevention still beats legal fights: limit permissions, periodically review privacy settings, and deactivate cards or accounts you no longer use.
Actionable Privacy Hygiene For All Three Apps
Regardless of which app you choose, some habits dramatically reduce both financial and privacy risk:
Turn off intrusive permissions you don’t need (contacts, location, SMS read), especially on PhonePe and Paytm where super-app features may request more access.
Regularly audit linked bank accounts, cards and auto-payments inside each app and remove ones you don’t use.
Treat UPI ID like an email address: sharing it is not directly dangerous, but it helps scammers build credible social-engineering scripts using your real name and bank details.
Never approve “collect” requests or screen-sharing sessions initiated by strangers, even if they claim to be from bank or support.
Use DPDP rights: request a full data profile from Paytm or any app, correct wrong data, and ask for deletion where legally possible instead of assuming “they must be careful.”