Archive · 25 Jul 2026
Rewards overtake loyalty in UPI user choices
In India, more and more people who use UPI (Unified Payments Interface) for payments are choosing apps based on the rewards and cashback they offer, rather than just how easy or trustworthy the app is.
A recent study found that 89% of UPI users consider rewards when picking a payment app, and 83% would switch apps for better offers.
Poor rewards were the top reason for leaving a platform, even more than factors like ease of use or trust.
Amazon Pay was the most satisfying app for rewards, while Google Pay and PhonePe were strong in trust and security.
Paytm was good for ease of use.
This shows that while UPI is already very advanced, the next step is to focus on keeping users engaged and happy with rewards.
89% of UPI users consider rewards and cashback when selecting a payment app.
83% of users are willing to switch platforms for better offers.
Poor rewards and benefits are the top reason for leaving a platform (59%).
Amazon Pay has the highest satisfaction rate for rewards (74%).
Google Pay and PhonePe are strong in trust and security, while Paytm is good for ease of use.
- Who
- UPI users in India
- What
- A shift in user behavior towards prioritizing rewards and cashback over traditional factors
- When
- The study was conducted recently, but the exact date is not specified
- Where
- India
- Why
- Users are looking for tangible value from every transaction, turning rewards into a core part of the payments experience
Rewards and cashback
Traditional factors
Primary driver for user choice
Rewards and cashback
Rewards and cashback are the primary driver for UPI user choice, with 89% of users considering them when selecting a payment app.
Traditional factors
Traditional factors such as ease of use, trust, and payment convenience are still important, but they are no longer the primary driver for user choice.
Reason for switching apps
Rewards and cashback
Poor rewards and benefits are the top reason for users switching apps, with 59% of users citing this as a reason for leaving.
Traditional factors
Traditional factors such as ease of use, trust, and payment convenience are still important reasons for users switching apps, but they are no longer the primary reason.
- UPI transactions daily
- Over 660 million
- Percentage of users considering rewards
- 89%
- Percentage of users willing to switch for better offers
- 83%
- Top reason for leaving a platform
- Poor rewards and benefits (59%)
- Amazon Pay satisfaction rate
- 74%
- Google Pay satisfaction rate
- 73%
- PhonePe satisfaction rate
- Not specified
- Paytm satisfaction rate
- Not specified