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UPI payments have become a daily habit for millions, and now the biggest attraction is the growing wave of rewards—cashback, coins, points and discount offers. But to get the maximum benefit, users must understand how these reward systems work. Experts explain which transactions offer the highest returns, what traps to avoid, and how to stay secure while collecting rewards.

Cashback Is Not Everything: Understand the Real Value of Points

According to Vidhi Ashok Bhatt, CEO and Co-founder of LIGHT – Credit for UPI, the biggest mistake users make is assuming that a 1–2% cashback offer always means better value.

She explains that the true benefit depends on the coin-to-cash conversion value:

• Some apps offer 1 coin = ₹1

• Others may offer 1 coin = 40 paise

• A few even limit redemption options, reducing real value further

This means two apps showing the same cashback percentage can deliver very different actual returns. For larger transactions, this difference becomes significant.

Categories That Give the Highest Rewards

Experts highlight that reward rates vary based on the category of spending. The most lucrative categories usually include:

• Travel bookings

• Shopping and online retail

• Dining and restaurant payments

• Movies and entertainment

These sectors frequently run brand collaborations and promotional campaigns, which boost reward rates. Some UPI apps also offer high reward points on:

• Fashion

• Electronics

• Food delivery

• Subscriptions

On the other hand, essential payments like bill payments, recharges, and utility expenses typically earn lower rewards.

Tip:
For maximising returns, use high-reward apps specifically for discretionary spending such as dining, movies and shopping.

How to Protect Your Privacy While Claiming Rewards

With reward programs increasing rapidly, privacy and security remain crucial. Bhatt advises users to stay cautious and follow a few important practices:

• Use only trusted and verified UPI apps

• Grant minimum permissions required for the app to function

• Avoid offers asking for access to SMS, gallery, or personal files

• Never share your UPI PIN, even if an offer claims it is required

• Keep device security active—screen lock, biometrics, app lock

• Regularly update your app to ensure security patches are applied

With these precautions, users can claim rewards safely without compromising personal information.

Watch These Key Changes in Reward Programs

UPI reward structures frequently change, as apps regularly revise their promotional strategies. To stay ahead and continue earning maximum returns, experts suggest tracking the following metrics:

• Changes in cashback percentage

• Variations in coin-to-cash conversion value

• New category-based bonuses

• Short-term promotions with high reward rates

• Daily or weekly reward caps

• Minimum spending requirements

Monitoring these factors helps users quickly identify which app is offering the best real return at any given time.

Bottom Line: Smart Strategy = Higher Rewards

UPI rewards are becoming more attractive, but the real value lies in understanding how they work. By:

• choosing apps with the best coin value

• using the right app for the right category

• staying cautious about privacy

• tracking reward policy changes

users can significantly increase their overall benefit.

If used smartly, UPI rewards can convert everyday spending—like dining, travel and shopping—into meaningful savings.