In a bid to lure more consumers to use the UPI-based BHIM app, the government is reportedly planning to offer higher cashback incentives starting August 15. At present, if a consumer uses the government-backed app, they’re eligible for cashback up to Rs 25. However, starting this Independence Day, users can expect increased cashback. Also Read - Now you can withdraw money from an ATM without using a card; here's howAlso Read - Top 5 UPI apps you can use to transfer money in India: GPay, Paytm, more
The BHIM app was launched in December to ease the move towards a cashless economy. The free app, available for iOS and Android, reportedly crossed 1.1 crore downloads within 20 days of launch. Now, NPCI MD and CEO A P Hota has revealed that the proposed approval of an increased cashback is expected to come into effect by August 15. Also Read - Google Pay, PhonePe and other third-party UPI apps to face 30 percent caps on all transactions
“We have communicated to the government that the cashback incentives need to be increased so that more people will start using it. We are waiting for the approval from the government which is expected by August 15,” Hota told TOI. According to the report, the government had allocated over Rs 450 crore for cashback incentives to be used for a period of six months starting April 1 in a bid to boost transactions made through UPI. ALSO READ: UPI transactions rose over 10% to 11.63 million in July: NPCI
The move to increase the cashback also comes in light of the incumbent digital wallets and services which rely on such cashback offers and lucrative deals to retain consumers. Paytm, for example, offers up to Rs 750 cashback on booking flight tickets or Rs 150 cashback on booking movie tickets among other cashback schemes. Such offers not only lure customers in using the platform more for digital payments, but also make the app a one-stop destination even for e-purchases. ALSO READ: PM Narendra Modi launches BHIM Aadhaar service, a digital payments platform for merchants
It is expected that on the same day, a new version of the BHIM app will also be rolled out. The version 1.4 of the BHIM app is expected to come integrated with QR code and boast improved performance. Hota is quoted as saying, “Among other updates, Bharat quick response (QR) code will be integrated into the app which should be another booster for increasing transactions on BHIM.”
Recently, NITI Aayog CEO Amitabh Kant revealed that the BHIM app recorded close to 20 million downloads so far. However, a recent survey revealed that only a small fraction of the rural populace is aware of the app. According to Brickworks Media, a sister concern of research and data analytics company Chrome DM, only 35.7 percent people in rural India are aware of BHIM that has boasts 10 million user base in the country.