Archive · 15 Aug 2025
Why UPI Payment Apps Offer Scratch Cards for Cashback
When you use apps like Paytm or PhonePe for payments, you often get scratch cards.
These cards give you a chance to win a little money back.
The apps do this to keep you using them.
It's like a small reward that makes you want to come back.
Even though they give away some money, they don't lose out because the money is considered an advertising cost.
They make money through partnerships with brands, banks, and from more people using the app for different things.
UPI payment apps like Paytm, PhonePe, and Google Pay offer scratch cards after transactions.
Scratch cards provide cashback or discounts, typically between Rs 5 and Rs 100.
These apps use scratch cards as a marketing strategy to retain users.
Cashback costs are treated as advertising expenses for the companies.
Companies earn through brand promotions, bank partnerships, and increased transactions.
- Who
- Users of UPI payment apps and the companies that provide them.
- What
- UPI payment apps offer scratch cards after transactions.
- When
- The practice is ongoing.
- Where
- India, with a focus on apps like Paytm and PhonePe.
- Why
- To retain and attract users through marketing strategies.
- Apps Offering Scratch Cards
- Paytm, PhonePe, Google Pay
- Purpose of Scratch Cards
- Marketing and user retention
- Typical Cashback Range
- Rs 5 to Rs 100
- How Companies Profit
- Brand promotions, bank partnerships, increased transactions
Sources
PhonePe Continues To Lead UPI Race In July, Market Share Sees Marginal Decline
PM says 50% of total real time transactions done through UPI
PM Modi Says 50% Of Total Real Time Transactions Done Through UPI
'A Wonder to the World': PM Modi On UPI Powering Half of Global Real-Time Transactions
