In the growing sector of fin-tech and UPI apps, BHIM, which is the official UPI app by the government is trying to make its position on the top by providing cashback to the users and merchants. Previously, BHIM app extended its offer of cashback for the merchants to March 31, 2018. Now after Ministry of Electronics and IT (MeitY) has decided that new users are also going to get a cashback on Rs 51 while using the application and the merchants who use the app will be eligible for a cashback of Rs 1000 in total. The cashback being offered by BHIM is possibly at par with the cashbacks being provided by other applications (Google Tez) since users receive a total sum of Rs 51 regardless of what amount they transact through the UPI app.
There is no minimum limit for the transaction to be eligible for the cashback. This is a strategy which has been put in place to give a tough competition to the likes of Google Tez, another popular UPI based payment application. Also, for every transaction for a minimum of Rs 100 to any VPA (Virtual Payment Address)/ UPI ID, bank account, or mobile number, the BHIM app is offering a cashback of Rs 25 however the cap on this has been set to Rs 500 per month.
Besides the cashback on the transaction of Rs 100 or higher, there is also another offer on a lower minimum amount which will make the users eligible for the cashback. The app is also offering cashback on minimum transaction value of Rs 10 which will be valid when a number of transactions are less than 50 but equal to or more than 25, the app will offer a cashback worth Rs 100 and another Rs 200 cashback can be redeemed by users when the number of transactions are equal to or more than 50 but less than 100. Lastly, there is also a cashback worth Rs 250 where a number of transactions are equal to or less than 100.
Speaking of the cashback opportunities for merchants, the BHIM app provides a cashback of 10% of the transaction value with an upper cap of Rs 50 per transaction for this the merchants will need to credit at least ten transactions with a minimum value of Rs 25.
Apart from this, the app is also offering a cashback of 10% of the transaction value with an upper cap of Rs 50. These cashbacks are going to valid for all banks who receive or credit payment through the BHIM app, although at least five transactions will need to be credited of the minimum value of Rs 25 to be eligible for the cashback. It remains to be seen whether or not these new cashback offers are successful in luring in the users for the app while there exist many more competitors in the same segment for the BHIM UPI application.