Should Jupiter reward every merchant UPI payment or focus rewards on Edge+ credit spends?

Introduction

Jupiter has announced "Jupiter Infinity", a rewards construct where users earn Jewels every time they pay a merchant through Jupiter's UPI. Rewarding every merchant UPI payment is a strong hook in a market where Google Pay and PhonePe offer few rewards. But UPI payments from a savings account earn almost no revenue for the app, because merchant discount rates on most UPI transactions are zero. Credit card payments, including Edge+ on UPI, do earn interchange. So the trade-off is: should Jupiter offer Jewels on all merchant UPI payments for everyone, or concentrate rewards on Edge+ credit spends where the economics work?

Step 1

Clarifying Questions (3 minutes)

• What is the company goal right now? Assume profitability within about two years, with engagement as a means, not an end.
• What is the current reward structure? Assume Edge+ gives category-based rewards, while UPI from the savings account earns limited, campaign-based Jewels.
• What is the budget? Assume the total reward budget can rise only if the incremental revenue covers it within 12 months.
• Which users matter most? Users who could make Jupiter their primary account: salary credited, regular spends.
• Any partner or regulatory constraints? Rewards on savings-account UPI are funded entirely by Jupiter; card rewards are partly funded by interchange shared with CSB Bank.