Paying via UPI? Here's how to earn more cashbacks
27 Nov 2025

As Unified Payments Interface (UPI) apps expand their cashback and points programs, users are keen to know how these rewards work.

Vidhi Ashok Bhatt, CEO and co-founder of LIGHT - Credit for UPI, says that while apps usually highlight 1-2% cashback, the actual payout is determined by the coin or points conversion rate.

Some platforms value one coin at ₹1 while others may value it at 0.4 paise.

Discretionary categories offer higher rewards
Reward dynamics

Bhatt points out that reward intensity is not uniform across transaction types.

Categories like travel, shopping, dining and movies usually get higher incentives due to partnerships and category-level promotions.

Some apps also offer stronger rewards for subscriptions, electronics, fashion and food delivery.

However, essential spends like bill payments and recharges usually have lower payouts.

Privacy matters while using reward-led features
Security tips

Bhatt stresses that users can take advantage of reward programs without compromising their security by following basic precautions.

She advises using trusted apps, granting only necessary permissions, and avoiding any incentive that requires access to sensitive data like messages or personal files.

Bhatt also highlights the importance of keeping your UPI PIN confidential, enabling device-level security, and regularly updating apps.

Tracking key changes as reward structures shift
Monitoring metrics

Given that app reward policies change frequently, experts recommend monitoring a few core metrics instead of tracking all updates.

These include cashback percentages, changes in coin-to-cash conversion values, category-specific boosts and short-term promotional campaigns highlighted within apps.

Bhatt says watching these limited indicators is generally enough to identify high-value opportunities in the evolving landscape of UPI rewards.