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UPI Rewards: Fintech's New War for Users
22 Jun
Summary
- Fintechs use UPI rewards to sell credit, commerce, and financial products.
- Newer apps like Navi and super.money gain traction against giants.
- Cashback is a strategy to acquire users for sticky financial products.
Fintechs are transforming UPI cashback from a payment incentive into a strategic tool for acquiring users for credit, commerce, and financial products. Newer entrants such as Navi and super.money are steadily increasing their market share, as evidenced by their transaction volume growth between January and May 2026.
These emerging UPI apps, including POP and Kiwi, are building diverse business models. Some, like POP, integrate rewards and commerce layers, while others, like super.money and Navi, focus on credit and card-led products. This approach leverages high-frequency UPI usage to drive engagement with stickier financial services.
Established players like Paytm are responding by increasing cashback spending to maintain customer engagement and retention. The shift signifies a move beyond basic payment facilitation, with fintechs aiming to monetize user behavior through broader financial product offerings and enhanced user experiences.
