Base32 vs Base64: when bigger overhead is the better choice
Base64 packs 6 bits per character and expands data by 33%. Base32 packs 5 bits per character and expands data by 60%. Base32 seems strictly worse, but it has one critical advantage: it's case-insensitive and avoids visually confusable characters. For data that humans type or read aloud, Base32's extra overhead is worth the usability gain.
How this is calculated
Base32 is used for OTP secrets (the 16-character codes you type into Google Authenticator), product license keys, and recovery codes. The RFC 4648 Base32 alphabet excludes 0, 1, 8, and 9 to avoid confusion with O, I/l, B, and g/q. Base64's alphabet includes letters in both cases, digits, +, and /, making it error-prone for human transcription. If a user is going to type the encoded value, Base32. If machines are exchanging it, Base64.
Verdict
Base64 for machine-to-machine data exchange. Base32 for anything a human will type, read, or transcribe. The overhead difference (33% vs 60%) is negligible for the small payloads (a few dozen bytes) where human readability matters.
