Fintech major Paytm has announced that it is shifting its cashback offers from peer-to-peer Unified Payments Interface (UPI) transactions to offline merchant partners for payments at retail kirana stores.
The move is aimed at making it more attractive for those customers who still prefer using cash for shopping but are already availing Paytm cashback on individual transactions such as sending money to other users.
The company is looking to partner with over 20 Mn retail kirana stores, enabling them to accept all digital payments options UPI, Paytm Wallet and debit or credit cards.
While customers are well-versed with cashbacks on UPI transactions between individuals, Paytm is hoping to build a cashless habit among these customers for payments in physical retail stores.
In fact, Paytm claims that UPI payments for individuals have become more popular due to Paytm cashbacks, but this often results in customers trying to game the system by making multiple transactions just to earn the cashback.
The company said this is detrimental to a cashless economy and bringing cashbacks to retail outlets will make transactions more meaningful again.