In India, digital payment apps like PhonePe and Paytm have become an integral part of daily life. Both platforms offer a wide range of services, from bill payments and recharges to online shopping and UPI transactions. However, one of the key factors that drive users to choose between these platforms is the cashback and discounts offered by each app.
If you’re trying to decide between PhonePe and Paytm, this guide will help you understand which platform offers better cashback and discounts and how each app’s rewards system works. Let’s dive into the comparison.
PhonePe vs Paytm: Overview of Cashback and Discount Programs
Both PhonePe and Paytm offer cashback and discounts as part of their rewards programs. However, the structure of these programs, the types of offers, and how users can avail them vary slightly between the two platforms.
PhonePe Cashback and Discount Offers
PhonePe offers cashback in the form of rewards that are credited to the user’s PhonePe Wallet. These rewards can be used for a variety of transactions, including bill payments, recharges, and shopping. Here’s a breakdown of how PhonePe cashback and discounts work:
- Bill Payments and Recharges:
- Cashback Offers: PhonePe frequently offers cashback for bill payments and recharges, especially for utility bills (electricity, water, gas) and mobile/DTH recharges. The cashback percentage typically ranges from 10% to 50%, depending on the offer and payment method.
- Bank Offers: If you make payments using a bank account linked via UPI, PhonePe often has additional bank-specific cashback offers, particularly for first-time users or during special festivals.
- Merchant Transactions:
- PhonePe often offers discounts and cashback on merchant payments for various businesses (such as restaurants, pharmacies, and retailers). These offers are frequently updated and vary based on location.
- PhonePe Offers and Coupons:
- Special Festive Offers: During major festivals like Diwali, Holi, or New Year, PhonePe runs special cashback campaigns. Users can get up to 100% cashback on select categories, including bill payments, recharges, and shopping.
- Referral Programs: PhonePe has an active refer-and-earn program where users get cashback by referring friends to use the platform. The more users you refer, the more cashback you can earn.
- Gold Investments:
- PhonePe also offers cashback on digital gold purchases. They frequently have discounts on gold purchases during sales, especially for users buying larger quantities.
Paytm Cashback and Discount Offers
Paytm, on the other hand, offers a range of cashback, discount, and rewards programs across different types of transactions. Let’s take a closer look at the ways Paytm provides cashback:
- Bill Payments and Recharges:
- Paytm First Cashback: Paytm’s First Membership provides exclusive cashback offers on bill payments, mobile recharges, and DTH payments. This membership unlocks better cashback rates compared to the regular Paytm user.
- Paytm frequently runs special cashback offers for mobile recharges, utility bill payments, and even insurance premium payments, with cashback ranging from 5% to 50% depending on the offer.
- Merchant Discounts and Paytm Mall Offers:
- Paytm Mall often offers significant discounts (often up to 40% to 50%) on electronics, clothing, and groceries. Users who pay through Paytm during online shopping can avail extra discounts and cashback.
- Paytm also runs Flash Sale Offers, where users get instant discounts on specific products when they pay through Paytm.
- Paytm Offers for Payments:
- Like PhonePe, Paytm runs seasonal campaigns offering cashback on specific categories of transactions such as bill payments, mobile recharges, and e-commerce shopping. Some of these offers can give you up to 100% cashback or special discounts.
- Referral Bonuses:
- Refer and Earn: Paytm has a referral program where users can get cashback or Paytm Cash by referring new users. The bonuses vary depending on the number of successful referrals made.
- Paytm Wallet Offers:
- Paytm frequently runs promotions for users to load money into their Paytm wallet. These promotions often provide cashback of up to 10%, especially if you’re loading funds via debit or credit cards.
- Loans and Insurance:
- Paytm also offers cashback on loans and insurance products. If you take out a loan or buy an insurance policy through Paytm, you might be eligible for cashback or discounts as part of their promotional offers.
PhonePe vs Paytm: Cashback Rates and Discounts – A Comparison
Cashback on Bill Payments and Recharges
- PhonePe: Offers up to 50% cashback on utility bill payments and mobile recharges during festive offers.
- Paytm: Offers up to 50% cashback on mobile recharges, DTH, and electricity bills during flash sales and Paytm First membership offers.
Merchant Payments and Discounts
- PhonePe: Regular cashback offers at partner merchants with discounts up to 10% or more.
- Paytm: Offers exclusive merchant discounts (up to 50%) on Paytm Mall and partner merchants.
Referral Programs
- PhonePe: Users can earn cashback for successful referrals, with offers ranging from ₹50 to ₹100 per referral, depending on the campaign.
- Paytm: Users can earn Paytm Cash and sometimes cashback through referrals, ranging from ₹50 to ₹200 or more.
Seasonal Offers and Special Campaigns
- PhonePe: During festive seasons, PhonePe frequently runs flash cashback campaigns with up to 100% cashback on selected transactions.
- Paytm: Also offers seasonal cashback campaigns and flash sales, especially on Paytm Mall, with discounts ranging from 10% to 50%.
Payment Methods and Cashback
- PhonePe: Users can avail cashback on UPI, PhonePe Wallet, and debit/credit card payments.
- Paytm: Users can avail cashback on payments made through Paytm Wallet, debit/credit cards, and UPI.
Which App Offers Better Cashback and Discounts?
The choice between PhonePe and Paytm depends largely on your transaction needs, preferences, and the type of cashback or discount you’re seeking. Here’s a summary of which app might suit you better:
- If you prefer:
- Frequent cashback on bill payments, recharges, and merchant transactions, PhonePe might be a better option due to its variety of offers and frequent festive promotions.
- Quick, hassle-free bank account transfers and loyalty rewards, Paytm excels with its Paytm First membership offering exclusive cashback and discounts on a range of services.
- If you’re a regular online shopper:
- Paytm stands out with its Paytm Mall offers, where you can enjoy massive discounts (sometimes up to 50%), cashback on top of shopping deals, and flash sales.
- If you enjoy:
- Referral rewards, both apps provide good programs, but PhonePe tends to offer higher cashback per referral, whereas Paytm provides more flexible payment and cashback for shopping.
- If you want:
- Cashback on digital gold or specific bank offers, PhonePe is the preferred option for regular cashback on such investments.
Conclusion
Both PhonePe and Paytm offer a variety of cashback and discount opportunities for their users. If you’re looking for seasonal deals, PhonePe might provide you with more frequent and larger cashback rewards during festive sales. On the other hand, Paytm offers better benefits if you are into online shopping through Paytm Mall and want access to exclusive merchant deals.
Ultimately, the choice depends on what fits your payment behavior. If you’re mainly focused on payments and recharges, PhonePe could be a better choice, while Paytm might be the go-to platform for shopping deals and higher cashback with Paytm First membership. Both apps have their advantages, so it’s worth trying both to see which one aligns better with your needs.