Swiggy Instamart has introduced a new checkout feature that lets users add any shortfall in minimum order value directly to their Swiggy Money wallet instead of having to buy more items simply to unlock free delivery.
If a cart falls short of the free delivery threshold by ₹50 or less, users can transfer that amount into their wallet, qualify for free delivery, and use the wallet balance for future orders. This money will be valid for use for one year from the date of credit, and will not be refunded if the order is cancelled.
The feature addresses a common friction point in quick commerce, where customers often have to add low-value products they don’t necessarily need, just to avoid delivery charges. It appears to be available in major cities including Bengaluru, Mumbai and Delhi-NCR, and is expected to be rolled out in other places in phases.
Mint explains why digital wallets are becoming increasingly important to quick commerce firms, and how they can support profitability goals in a fiercely competitive market.
Why are wallets becoming crucial in quick commerce?
At first glance, Swiggy Instamart’s new feature appears to solve a simple customer problem. But the larger significance lies in how wallets fit into the economics of quick commerce.
Unlike a one-time transaction, a wallet balance keeps a user tied to a platform. Once money is stored within an app, customers are more likely to return and spend it there rather than use a rival service.
The importance of retention is reflected in consumer behaviour. According to a 2024 report by market research firm Datum Intelligence, 62% of quick commerce users describe themselves as “very” or “extremely” loyal to their preferred platform, and more than 50% place at least five orders a month.
Convenience, reliability, and habit formation have become powerful drivers of repeat purchases in the business, and wallets could strengthen those habits further. By encouraging customers to preload money into an account, platforms effectively secure future spending before the next order is even placed.
According to WorldPay Global Payments Report 2025, digital wallets accounted for 53% of e-commerce transactions in 2024. Payments using digital wallets reached $15.7 trillion in 2024, almost 10 times the amount a decade ago.
The economics matter because quick commerce remains a scale business with thin margins. According to Datum’s report, higher average order values, increased purchase frequency, and greater customer loyalty are key drivers of profitability for the sector.
“The next phase of quick commerce will be less about customer acquisition and more about increasing engagement and wallet share among existing users. Wallets offer one way to achieve that without relying solely on deeper discounts or expensive marketing campaigns,” said said Satish Meena, analyst at Datum Intelligence.
But why now?
India’s quick commerce sector is entering a more difficult phase after years of rapid expansion fuelled by discounts, subsidised deliveries, and aggressive dark-store rollouts.
Swiggy Instamart, Eternal-owned Blinkit, and IPO-bound Zepto, among others, continue to compete intensely for market share, while larger players including Amazon India and Flipkart have expanded their own rapid-delivery offerings.
Swiggy has increasingly signalled that profitability is becoming a higher priority than pure growth. Over the past two quarters, company executives have publicly described competition in the market as “irrational”, particularly at the lower end of the average-order-value spectrum, where discounting is most intense. Swiggy has also reiterated its focus on improving contribution margins rather than matching every promotional campaign launched by rivals.
Features such as wallet-based top-ups offer a relatively low-cost way to improve conversion rates without directly increasing discounts or delivery subsidies, according to Datum’s Meena. It allows Instamart to reduce the number of carts that are abandoned and potentially improve the lifetime value of a customer without engaging in endless rounds of costly price wars.
What are rivals doing?
Swiggy is not alone in viewing wallets as a strategic asset. Over the years, Zepto has aggressively pushed Zepto Cash through promotional credits and refunds, while Blinkit has expanded wallet-linked payments and refunds through Blinkit Money as it broadens its ecosystem beyond groceries.
Tata Group-backed BigBasket also operates wallet and prepaid payment features across its digital commerce network and the Tata Neu programme. Amazon Now allows payments and refunds through Amazon Pay.
However, Swiggy Instamart’s new feature is a rare instance of product innovation in which customer convenience and business incentives appear aligned.
