Rewards & Cashback System

[VisibleNasir]

📘 Overview

Implement a Rewards & Cashback system to incentivize users with cashback (1–5%), scratch cards, and referral bonuses (₹50–200).
This drives user engagement, increases transaction frequency, and promotes organic growth through referrals.

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💡 Why Add It

• Engagement Boost: Cashback encourages repeat transactions (PhonePe’s model drives +20% volume).
• Acquisition: Referrals bring in new users with minimal marketing cost.
• Revenue: More transactions → higher Razorpay MDR earnings (1–2%).

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⚙️ Implementation

🧑‍💻 Userapp (Next.js)

• Page: /app/rewards/page.tsx → Central rewards dashboard.

• UI Components:

  • Cashback balance display.
  • Recent rewards list.
  • Scratch card animation (react-scratchcard or canvas).
  • Referral input field and share button.
  • Consistent styling: bg-zinc-800, text-zinc-100, border-zinc-700.

• API Routes:

  • GET /app/api/rewards/fetch → Fetch user rewards and balance.
  • POST /app/api/rewards/scratch → Trigger random scratch reward (₹10–₹100).
  • POST /app/api/rewards/referral → Validate and credit referral bonuses.

• Razorpay Integration:

  • For cashback payouts → direct UPI transfer via RazorpayX.

• State Management:

  • useState → Scratch state, referral code input.
  • TanStack Query → Fetch & refresh reward data dynamically.

• Error Handling:

  • Invalid inputs → show inline errors (border-red-500, bg-zinc-700).
  • Loading states → disabled:bg-zinc-600/50.

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🌐 Webhook (Express)

• Endpoint: /webhook/reward

• Trigger Conditions:

  • payment.succeeded
  • referral.completed

• Logic Flow:

  1. Webhook receives payment event from Razorpay.
  2. Calculate cashback (e.g., 2% of amount).
  3. Insert reward record into DB (type: CASHBACK).
  4. Send notification → /api/notify/push (e.g., “You earned ₹20 cashback!”).

• Security:

  • Validate Razorpay webhook signature.
  • Rate-limit with express-rate-limit.

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🗄️ Database (Prisma)

Add to schema.prisma:

model Reward {
  id             Int      @id @default(autoincrement())
  userId         Int
  type           String   // CASHBACK, SCRATCH, REFERRAL
  amount         Int      // in paise
  status         String   // PENDING, CREDITED, FAILED
  transactionId  Int?     // link to Transaction table
  createdAt      DateTime @default(now())
  updatedAt      DateTime @updatedAt
}