Mumbai: Today, UPI payments have become a normal part of life. Most people now prefer paying through UPI instead of cash — whether it’s for small tea shop bills or large purchases. Even small shopkeepers are using QR codes to accept payments. To make these transactions easier, people use apps like Paytm, PhonePe, and Google Pay.
After every UPI payment, these apps often give users a free scratch card. By scratching it, you can win cashback or discounts ranging from Rs 5 to Rs 100. But have you ever thought - if these companies are giving cash to millions of users, why don’t they face losses?
Why Companies Give Scratch Cards
Paytm, PhonePe, and Google Pay offer scratch cards mainly to keep users loyal. This is a type of marketing strategy. When people get rewards after a transaction, they feel happy and are encouraged to keep using the same app for future payments.
In simple words, it’s like giving a small gift to make sure you keep coming back. These offers are designed to attract new users and retain existing ones.
Why It’s Not a Loss for Them
Even though they give cashback, these companies don’t lose money in the long run. The money they spend on scratch cards is treated as an advertising cost.
Here’s how they earn:
Brand promotions: Companies often tie up with brands for special offers, and the brand pays for part of the cashback.
Bank partnerships: Banks collaborate with payment apps and share promotional costs.
More users = more transactions: A larger user base means more transactions, which helps them earn from various services like bill payments, investments, and merchant fees.
So, giving Rs 10–Rs 100 as cashback is a small investment to attract millions of users. This small expense can result in huge profits through partnerships and increased usage.
