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Payments firms slash cashbacks, incentives on funding drought

Economic Times · 5m

Consumer payment companies like PhonePe, Paytm, Amazon Pay, and Cred have significantly reduced their marketing spends and customer incentives. This reduction can be attributed to the maturing digital payments market in India, with cashbacks now being offered in a more systematic and structured manner. Startups are focusing on conserving cash and building towards profitability and sustainability. Despite permission to onboard new customers, Paytm remains focused on controlling costs. Amazon Pay has reduced its marketing expenses by 23% in FY2024 compared to the previous year. Cred, as a new entrant, has also cut down on marketing spends. With market stability, industry insiders are watching the emergence of Bhim and the possibility of market domination battles.