Sachin Bansal's Navi app is offering cashback on UPI transactions
What's the story
Navi, a fintech platform owned by Flipkart co-founder Sachin Bansal, has launched a rewards program for UPI users.
The program awards coins for each UPI transaction conducted on the platform.
The conversion rate is set at 10 coins per rupee. However, the number of coins earned per transaction varies and is based on luck.
Additionally, referral rewards are offered when a referred individual downloads Navi and uses it to purchase digital gold or open a mutual fund account.
Campaign launch
Navi plans marketing campaign to boost UPI transactions
In a conversation with Moneycontrol, Bansal revealed that Navi is preparing to launch a marketing campaign for UPI.
"We believe there's new stuff to be done over there. We will announce it when it comes," said Bansal.
He further added, "Give us a few months, we have some things we are doing and we are hoping it will work."
The goal of the campaign is to introduce a fresh perspective and compete with existing market players.
Investment plan
Navi allocates ₹200 crore for UPI-related promotions
Navi has reportedly set aside ₹200 crore for UPI-related promotions this year.
This significant investment is part of the company's aggressive strategy to gain a foothold in the UPI market.
The move comes amidst growing concerns about the duopoly of Walmart-owned PhonePe and Google Pay, which together control over 85% of the market share in this sector.
Rebranding move
Navi rebrands app amidst stiff market competition
Navi recently rebranded its app on Google Playstore as 'Navi: UPI, Investments and Loans', highlighting its focus on the payments platform.
Despite strong marketing and cashback offers, emerging players like CRED, Amazon Pay, and WhatsApp Pay have struggled to secure a significant market share.
Acknowledging the intense competition, Bansal stated, "Yes, the competition is very large. Of course, market share-wise, it looks like a duopoly kind of thing."
Market dynamics
Flipkart re-enters UPI space, PhonePe dominates market
Interestingly, Flipkart, which Bansal left in 2018, ventured into the UPI market a month ago.
PhonePe, incubated in Flipkart and separated in 2020, is currently the market leader with around 50% share.
This comes as Paytm's market share has declined from approximately 13% last year to around 9% in March due to RBI's regulatory action against its associate company, Paytm Payments Bank.
UPI is the most popular digital payments system in India, accounting for about 75% of all online transactions.