89% of UPI users consider rewards before choosing a payment app; Amazon Pay tops rewards satisfaction: Survey
According to the study, 89% of UPI users consider rewards and cashback while choosing a payment app. The report also found that 94% of users view rewards as an important factor when switching platforms, while 88% actively compare UPI apps to identify better reward offerings.
- Jul 23, 2026,
- Updated Jul 23, 2026 3:43 PM IST
Rewards and cashback have become a key factor influencing how Indians choose their Unified Payments Interface (UPI) apps, with nearly nine out of 10 users taking incentives into account before selecting a payment platform, according to a study by Empower India. The research also found that Amazon Pay has emerged as the highest-rated platform for customer satisfaction with rewards.
The findings come as India's UPI ecosystem processes more than 66 crore transactions every day, indicating that competition among payment apps is increasingly shifting from acquiring new users to retaining existing ones through better customer engagement.
Rewards influence app choice
According to the study, 89% of UPI users consider rewards and cashback while choosing a payment app. The report also found that 94% of users view rewards as an important factor when switching platforms, while 88% actively compare UPI apps to identify better reward offerings.
Consumer loyalty appears to be increasingly linked to incentives, with 83% of respondents saying they are willing to switch payment apps if another platform offers better rewards.
MUST READ: UPI goes global! Indians can now pay seamlessly in 9 countries; see the full list here
Among users who had already switched apps, 59% cited poor rewards and benefits as the primary reason for leaving their previous platform. Other reasons included ease of use (64%), trust and customer support (61%), and payment convenience (28%).
The findings suggest that rewards are no longer viewed merely as promotional offers but have become an important component of the digital payments experience.
Commenting on the findings, K. Giri, Director General, Empower India, said India has successfully built one of the world's most sophisticated real-time payment infrastructures, but the next phase of growth will depend more on customer engagement than on user acquisition.
"Our research shows consumers increasingly expect tangible value from every transaction, making rewards an integral part of the digital payments experience rather than a marketing add-on," he said.
MUST READ: The average digital wallet payment is just ₹326. Here's what that reveals
Amazon Pay leads in rewards satisfaction
The study also compared customer satisfaction across leading UPI platforms. Amazon Pay emerged as the highest-rated platform, with 74% of its users saying they were "very satisfied" with the rewards they receive.
Additionally, 87% of Amazon Pay users said they chose the platform because of the everyday value delivered through rewards and cashback, compared with 73% for Google Pay.
Cashback on routine transactions also emerged as a key differentiator. Half of Amazon Pay users said cashback on everyday payments was one of the main reasons for using the platform, compared with 38% for PhonePe users and 35% for Google Pay users.
When it came to redeeming rewards, Google Pay ranked marginally ahead with 70% of users satisfied with the redemption process, while PhonePe and Amazon Pay were tied at 68%, suggesting that redemption convenience has become another competitive differentiator.
Competition moves beyond payments
The study found that while Amazon Pay led on rewards satisfaction, PhonePe and Google Pay scored strongly on trust and security, whereas Paytm received high ratings for ease of use.
MUST READ: How much has India's digital payments revolution changed in five years?
According to Empower India, India's UPI ecosystem has now entered a more mature phase where speed, reliability, security and merchant acceptance have become baseline expectations rather than differentiators. As functional differences narrow, the report suggests payment platforms will increasingly compete on rewards, cashback and overall user experience.
The research concludes that with switching costs remaining low, long-term customer loyalty in India's digital payments ecosystem will depend not only on seamless payment services but also on consistently delivering meaningful value beyond each transaction.
Rewards and cashback have become a key factor influencing how Indians choose their Unified Payments Interface (UPI) apps, with nearly nine out of 10 users taking incentives into account before selecting a payment platform, according to a study by Empower India. The research also found that Amazon Pay has emerged as the highest-rated platform for customer satisfaction with rewards.
The findings come as India's UPI ecosystem processes more than 66 crore transactions every day, indicating that competition among payment apps is increasingly shifting from acquiring new users to retaining existing ones through better customer engagement.
Rewards influence app choice
According to the study, 89% of UPI users consider rewards and cashback while choosing a payment app. The report also found that 94% of users view rewards as an important factor when switching platforms, while 88% actively compare UPI apps to identify better reward offerings.
Consumer loyalty appears to be increasingly linked to incentives, with 83% of respondents saying they are willing to switch payment apps if another platform offers better rewards.
MUST READ: UPI goes global! Indians can now pay seamlessly in 9 countries; see the full list here
Among users who had already switched apps, 59% cited poor rewards and benefits as the primary reason for leaving their previous platform. Other reasons included ease of use (64%), trust and customer support (61%), and payment convenience (28%).
The findings suggest that rewards are no longer viewed merely as promotional offers but have become an important component of the digital payments experience.
Commenting on the findings, K. Giri, Director General, Empower India, said India has successfully built one of the world's most sophisticated real-time payment infrastructures, but the next phase of growth will depend more on customer engagement than on user acquisition.
"Our research shows consumers increasingly expect tangible value from every transaction, making rewards an integral part of the digital payments experience rather than a marketing add-on," he said.
MUST READ: The average digital wallet payment is just ₹326. Here's what that reveals
Amazon Pay leads in rewards satisfaction
The study also compared customer satisfaction across leading UPI platforms. Amazon Pay emerged as the highest-rated platform, with 74% of its users saying they were "very satisfied" with the rewards they receive.
Additionally, 87% of Amazon Pay users said they chose the platform because of the everyday value delivered through rewards and cashback, compared with 73% for Google Pay.
Cashback on routine transactions also emerged as a key differentiator. Half of Amazon Pay users said cashback on everyday payments was one of the main reasons for using the platform, compared with 38% for PhonePe users and 35% for Google Pay users.
When it came to redeeming rewards, Google Pay ranked marginally ahead with 70% of users satisfied with the redemption process, while PhonePe and Amazon Pay were tied at 68%, suggesting that redemption convenience has become another competitive differentiator.
Competition moves beyond payments
The study found that while Amazon Pay led on rewards satisfaction, PhonePe and Google Pay scored strongly on trust and security, whereas Paytm received high ratings for ease of use.
MUST READ: How much has India's digital payments revolution changed in five years?
According to Empower India, India's UPI ecosystem has now entered a more mature phase where speed, reliability, security and merchant acceptance have become baseline expectations rather than differentiators. As functional differences narrow, the report suggests payment platforms will increasingly compete on rewards, cashback and overall user experience.
The research concludes that with switching costs remaining low, long-term customer loyalty in India's digital payments ecosystem will depend not only on seamless payment services but also on consistently delivering meaningful value beyond each transaction.