What is the trend in India's alternative payment sector?

Between 2020 and 2025, over 420 alternative payment startups emerged in India, focusing on reward-based payments, credit-on-UPI, and digital wallets.

How are rewards being used in India's digital payments?

Reward points are increasingly integrated into payment flows, allowing consumers to use them as direct payment value at the point of purchase.

How much investment has the alternative payments sector in India received?

Between 2020 and 2025, the sector raised $418 million across 88 equity funding rounds.

Home / Business and Economy / Rewards Now Paid Like Cash at Checkout

Rewards Now Paid Like Cash at Checkout

28 Jan

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Summary

Over 420 alternative payment startups emerged between 2020-2025.
UPI accounts for over 83% of India's digital payment volumes.
Sector raised $418 million across 88 equity rounds.

Between 2020 and 2025, India has seen an explosion of over 420 alternative payment startups. These innovative companies span reward-based payments, credit-on-UPI, 'Buy Now Pay Later' options, digital wallets, QR-led solutions, and stored-value systems. As of January 28, 2026, these platforms are increasingly integrating reward programs directly into the payment process.

UPI now constitutes over 83 percent of India's digital payment volumes, processing 185.8 billion transactions in FY25 alone. This massive scale means transaction volume is no longer the primary constraint. Rewards-based payments are now mainstream, significantly boosting incremental transactions and user engagement.