The payment landscape in India has transformed significantly ever since the inception of Unified Payments Interface (UPI). Whether it’s splitting a dinner bill among friends or paying your monthly bills, UPI payments have enabled quick, safe and efficient transactions. In addition to the increased convenience, UPI payments have also brought about another glittery perk: rewards and cashback.
The one thing that most UPI apps use to attract more and more people is to give them daily UPI rewards and monthly cashback. While it may seem very similar, both daily UPI rewards and cashbacks are two different offerings of a UPI app. Let’s break both of them down and get a thorough understanding of what they are and which one suits you the best.
Understanding Daily UPI Rewards
Many UPI apps like POP UPI offer a lot of daily rewards for every transaction made. This usually includes scratch cards, e-commerce discount coupons, or even small cashback amounts that get deposited directly into your bank account. Daily rewards from making UPI transactions can be understood as instant gratification. They get more consistent over time and add up faster on every daily transaction that you make. There are many apps that even try to make this experience more gamified by incorporating spin-the-wheel and surprise gift formats.
Understanding Monthly UPI Cashback
Contrary to the popular daily rewards, many UPI apps offer monthly cashback instead of giving small amounts daily. Instead of receiving Rs 10 or Rs 20 here and there, you receive a larger amount of cashback at the end of the month if you hit the transaction milestones.
Most apps like POP UPI usually require you to cross a minimum spending limit in order to claim your monthly cashback. For example, you might unlock a monthly cashback of Rs 500 on completing 30 transactions above a certain amount in a month.
Which One Should You Choose?
You can only make the correct choice based on your spending habits:
- If you are someone who makes frequent small UPI payments, like paying for daily groceries or travelling expenses, then daily UPI rewards are the best perk for you.
- If you are someone who does not make small payments frequently but focuses on paying large amounts of bills like rent, electricity and other utilities, then you should take advantage of the monthly cashback system offered by many UPI apps.
Pro Tip:
While daily rewards and cashback offered by a UPI app can be very tempting, one must never get too addicted to them. The real purpose of using a UPI app is to ensure convenience and security in your daily transactions. Hence, always ensure:
- You are using an RBI-approved and regulated app.
- You do not end up overspending just to unlock cashback or rewards.
So the debate between daily UPI rewards and monthly cashback isn’t really about which one is universally better, it’s actually about which one suits your spending habits the best. If you love instant perks, daily rewards win. If you prefer big savings in one go, monthly cashback takes the lead.The smarter you align your spending with the reward structure, the more value you’ll unlock with every UPI payment.