How to maximize cashback on bill payments?
Did you come here looking for the best cashback apps for recharge & bill payment?
Well, mobile recharge, utility and bill payments are one of the most important expenses that every household and everyone is looking to save some bucks on them.
But there aren’t many platforms providing cashback on bill payments.
Here are some of the platforms where you can find coupons and discount offers on bill payments.
If you visit this sites, you will notice that they are offering cashback for first time users only. Or they offer cashback and coupons during a festive season. These aren’t regular offers which you can find every month.
Practically speaking, it’s not possible to give cashback on bill payments. Even if you do, you will be doing business on a thin layer of ice that can break anytime.
Why?
For starters, implementing a cashback system is a costly business with all the tracking and advanced security measures in place. It is not possible to sustain such platforms that offer cashback on bill payments.
Second, the profit margins are very low, so providing a cashback out of the penny that you are making doesn’t really make business sense.
And last, there are transaction fees, which will take a part of a penny that you made. Ultimately you will be left with only a few bucks, and providing cashback out of those isn’t practical.
We are not suggesting that there aren’t any ways to earn cashback on bill payments. But these offers are not regular like you can find cashback offers for shopping or buying other stuff online.
Let’s discuss how you can earn cashback on bill payments.
Ways to earn cashback on Bill Payments
- Use bill payment apps and services: There are many third-party payment apps and services that provide cashback for paying bills through their platforms. These aren’t the regular offers, thou they are a good way to earn some cashback. These apps run promotional campaigns during festival seasons and peak months. These apps don’t really make much profit from bill payments. Instead, they want to encourage users to use their services. For example, Paytm and Cred promote their platform for bill payment and offer cashback. It helps them get more users and keep them active regularly.
- Take benefits of bank offers: Banks often run promotional campaigns to provide cashback on bill payments. These cashbacks are either in the form of direct cash or gift cards that you can redeem on their partner merchants. These offers might be seasonal or linked to specific types of accounts or services provided by the bank.
- Use cashback credit cards: Many credit cards offer cashback rewards for payments made on various categories, including utility bills, internet, and phone services. By paying bills using these credit cards, you can earn a percentage of your payment back as cashback. Thou, it’s important to check whether the card categorizes bill payments as eligible for cashback and what the cashback rate is. Check the image below; State Bank of India is offering cashback worth INR 350 on a bill payment of INR 9000 or more.
This makes you spend more on their platform on different categories like recharge, bill payment and more. This way card providers can make some profits with extra spends and return it you as cashback.
- Enroll in Utility Provider Rewards Programs: Though this is not common among utility companies, some companies offer their own rewards programs that reward you for paying bills on their platform. By enrolling in these programs, you can earn points or direct cashback on your regular bill payments, which can be redeemed or applied towards future bills. Also, some companies don’t charge convenience fees when the bill is paid from their site; it saves you around 2% on every bill.
- Automated Payment Enrollment Bonuses: Some service providers and banks offer one-time bonuses or ongoing discounts for setting up automated bill payments. This not only ensures timely payments but can also qualify you for cashback or discounts, reducing the overall spending on bills.
- Special Promotions Through Mobile Wallets: Mobile wallets like Apple Pay, Google Wallet, Paytm Wallet and Samsung Pay often run promotions where they offer additional cashback for transactions made through their systems. This can include bill payments made directly from the wallet app.
Conclusion
If you have noticed, that there are no cashback apps or card services, that offer cashback regularly. Its because of a very thin profit margin, that makes it almost impractical to offer cashback. So, if you are planning to develop a cashback platform for bill payments, it is a better option to drop this idea and look for any other niche that can help your business sustain for a longer periods of time and build a profitable business.
At EnactSoft, we are experts in developing custom affiliate coupon, and cashback platforms. With 10+ years in the cashback and coupon industry, our consultants can help you choose the best cashback niche for your business.
We are proud to call ourselves a go to partner for building cashback platforms. Our expertise in different industries and niches can help you identify the best niche and build a cashback platform with unique features to maximize your profit earnings and cashback offerings.
