Archive · 28 Jan 2026
Online Payments Platforms Integrate Rewards to Boost Monetization
Online payments platforms in India are now combining their reward programs with their payment systems.
This means when you pay online, you can use your reward points directly at the checkout.
UPI, which is a popular payment method in India, is used a lot—over 185 billion times in FY25!
Many new companies are creating different ways to pay, like using credit on UPI or paying later.
These companies have raised a lot of money to grow.
The idea is to make rewards more useful by letting people use them right when they buy something, which makes everyone happy—customers, companies giving the rewards, and the stores.
Online payments platforms are integrating reward points with payment flows to drive usage and improve monetization.
UPI accounts for over 83% of India's digital payment volumes, with 185.8 billion transactions in FY25, a 42% year-on-year increase.
Rewards-based payments are becoming mainstream, driving incremental transactions and higher engagement.
New models enable rewards to function as payment value at checkout, improving utilization and aligning incentives.
Over 420 alternative payments startups have emerged between 2020 and 2025, raising $418 million across 88 equity funding rounds.
- Who
- Online payments platforms and alternative payments startups
- What
- Integration of reward points with payment systems
- When
- Between 2020 and 2025
- Where
- India
- Why
- To drive reward usage, improve monetization, and enhance consumer spending flexibility
- UPI Transaction Volume
- 185.8 billion in FY25
- UPI Transaction Growth
- 42% year-on-year increase
- Alternative Payments Startups
- 420 between 2020 and 2025
- Funding Raised
- $418 million across 88 rounds
- Key Players
- TWID, Kiwi, Popclub, Cheq