How does Payback make money? How the company makes profit

If you want to collect points with Payback, you must first register for free. Then you will receive a card and a number. With this, you can collect points in selected stores and online stores and exchange them for rewards. But how does the company actually make money with the free service?

This is how Payback makes money

With Payback, you collect points in selected stores and online stores, which you can in turn convert into a voucher or exchange for rewards. This service is for completely free. Precisely for this reason, the question arises as to how the company nevertheless makes large sums of profit.

1. Payback earns money primarily with the information about its customers, that is, with the customer data, user profiles and the resulting buying habits.
2. With the help of the information collected, it is possible to generate personalized advertising and send it to you.
3. Another source of income are the fees. If a merchant wants to offer Payback in the store, he must pay fees to the company. So it is possible to attract customers who are just shopping in this store just to collect points.
4. This points system does not only attract new customers. Existing customers are also less likely to switch to a competitor that does not offer the system.
5. The purchase behavior can also be controlled with the offer. If there are extra points on certain products, customers can be made to buy something that you might not have bought at that moment.