POPclub's UPI Transactions Plummet 85% After Halting Cashback Incentives

• Razorpay-backed POPclub saw its monthly UPI transaction volumes fall by 85% from 63.7 million in July 2025 to 9.5 million by December, after phasing out cashback incentives.
• POPclub founder and CEO Bhargav Errangi stated this was a conscious decision to move away from aggressive, cashback-driven rewards, which were a "distraction" and not building sustainable value.
• The company aims to focus on acquiring quality customers, especially young, online shoppers, and shift towards a merchant-funded rewards model (POPcoins) rather than platform-funded cashbacks.
• Razorpay invested approximately $30 million in 2023 to acquire a majority stake in POPclub, marking its entry into the consumer UPI ecosystem.
• Other UPI players like BHIM and Navi have shown growth, while market leaders PhonePe and Google Pay maintain their dominant shares despite the shift away from cashbacks by newer entrants.

Why It Matters: POPclub's UPI transactions sharply declined after ending cashbacks, signaling a strategic shift to sustainable, merchant-funded rewards.