Aiming to enhance user engagements, Paytm has now brought 'Paytm Cash' that will eventually transform the existing cashback system on the mobile wallet platform - potentially preventing misuse of cashback offers. The new model is rolling out to replace future cashback and is designed to be accepted everywhere where you can currently pay using the Paytm app. However, it is worth noting that Paytm Cash is non-transferable in nature; it will be not transferred to other users of the app or to any bank account.
The Paytm app for Android and iOS devices has been receiving a server-side update with a dedicated Paytm Cash tab under the Passbook option. This new tab will list the details about the cashback you've received through various online and offline deals. Previously, the app was jointly showing all the cashback received and the existing wallet balance under the Wallet tab.
Despite making the distinct section, the Paytm app will show all the transactions made using Paytm Cash under the Wallet tab. But the app will not allow you to transfer the balance received in the form of Paytm Cash to any of your contacts through Paytm or to any bank account. This is ostensibly aimed to let users use their cashbacks only for transactions made through the Paytm. Eventually, the move will help the company reduce instances of misusing cashback offers that are quite common during various sale seasons.
We've reached out to Paytm for more clarity on the update and will update this space accordingly.
In December, the Paytm app hit the benchmark of 100 million downloads on Google Play. The app already supports features such as BHIM UPI functionality and Paytm Payments Bank integration. Earlier this month, the company, owned by One97 Communications, also tied up with IndusInd Bank to offer fixed deposit facility to Paytm Payments Bank customers.
Disclosure: Paytm's parent company One97 is an investor in Gadgets 360.