Retailers make Retailers and earn Income

A cashback, quite simply is a form of incentive over and above the discount price offered to buyers as a refund in their mobile wallets which they can use to either shop for products or for any other services; these include paying utility bills, and for mobile and data card recharges. While buyers have more cash in hand to shop, sellers get a chance to get another slice of the consumer’s wallet.

“Cashback is the reigning king of Indian ecommerce marketing,” says Saurabh Vashishtha, vice-president, business, Paytm. While discounts attract shoppers, there is little that they do for customer retention. Between three top players, a consumer will identify the platform offering maximum rebate and shop there. However, there is nothing to ensure that this transaction moves on from being a one-time interaction to something more permanent.