8.9 C
New York
Sunday, December 10, 2023

Buy now


Cashback vs. Points: Which is Better?

One of the reasons behind the popularity of online payments is its payback offers. While some apps offer cashback rewards, others allot points that carry some value! Though points also hold monetary value, people still have a thing for the cashback rewards. They consider it equivalent to having money in their accounts which they can use to shop more. But the truth be told, even the reward points have similar significance. A user can collect the reward points and use them to pay for their next online order! 

You can find multiple options for cashback apps and apps that follow the reward point system. Both the options have their own share of users, clearly stating cashback and reward points are equally good. Therefore, you only have to search- which UPI app is safe and start using it to enjoy a fruitful shopping and payment experience. However, there are always two sides to a coin. Hence, cashback and reward points also have their own pros and cons. Based on these differences, a user decides which option he wants to go with. Let us give you a detailed insight into the perks and flaws of both these offer systems and help you decide which one would work best for you.

Pros and Cons of the Cashback System

Cashbacks are the most straightforward and transparent discount deals which clearly tell the user how much discount he got on his purchase. Once the transaction completes, this amount reflects immediately in the app wallet, and the user can start using it right away! As the value or the amount is clear, you will have a clear idea about what you can buy with the cashback you earned. Another advantage that a user gets is in redeeming or using the cashback. You do not have to make any extra effort; direct the app to use the money in your e-wallet, and it will deduct the value from the amount you earned! Furthermore, if you use the apps that give assured cashback on every transaction, you can enjoy a discount on every purchase! 

The only drawback you may experience with the cashback system is the expiration time. Most cashback apps keep a fixed time cap within which the user should use the rewards. If you fail to utilize it during that time, you lose all your perks. However, there is a solution to this as well. You can use the apps like Favepay that don’t keep any time constraints, and feel free to use your cashback whenever you want. 

Pros and Cons of Reward Points

Another way that the apps use to reward the customer is by giving points to them against their transactions. The number of points you get depends on your invoice value, and it reflects in your app wallet itself. These points keep adding to your account, and when they reach a significant level, you can use them to get a discount on your invoice or buy something from the app. This way, reward points also work similar to the cashback, but the only difference is that you cannot use them until your points hold some value. 

The major disadvantage of reward points is the lack of clarity. The user doesn’t know how much one point values, and the only information available is when you can redeem your points. It acts as a crucial turn-off for the consumer as everyone wants transparency. Another flaw is that your reward points become useless if you disable your account. There is no provision for transferring them to the app you switched to. Moreover, you also cannot put them in your bank account.


It is fair to say that only a user can decide if he wants to opt for the cashback or reward point system. The key is to ensure which UPI app is safe. A user should gather all possible information about both systems and ultimately go with the app that offers the reward system of their choice. Take virtual tours of multiple UPI apps, checking their features and functionalities. Furthermore, check the user reviews and the ratings people left to get a clear idea about their operations and services. In the end, choose a safe, reliable, and user-friendly UPI app that caters to your requirements by offering the kind of reward system you want.

Related Articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest Articles