Edeka's Partnership Fuels Significant Growth for Payback Loyalty Program
In a remarkable expansion, Payback, Germany's largest loyalty program, has welcomed two million new customers following Edeka's integration into its network on January 1. With this increase, the total number of active users now stands at 33 million, as reported by the company's management.
Founded in March 2000, Payback is currently celebrating its 25th anniversary. Over this period, the program has established partnerships with around 700 companies, enabling customers to earn and redeem loyalty points across various retail outlets. In 2024 alone, Payback users accumulated points valued at EUR583 million and generated a total revenue of EUR39 billion through the program. The management anticipates further growth this year, although specific figures regarding revenue and profit have not been disclosed.
According to the Payback CEO, the collaboration with Edeka and Netto represents a pivotal development for the company, as these partners are significantly larger than previous ones, such as Rewe and Penny. Initially, it was believed that the customer base would reach a natural saturation point around 35 million users, but management now considers the potential for further growth beyond this threshold.
In addition to Edeka's partnership, the anticipated inclusion of Sparkassen as a partner this year is expected to be another significant milestone. This partnership will allow customers to effortlessly accumulate Payback points when making purchases at participating merchants using their Sparkassen card. With over 47 million Sparkassen cards in circulation as of the first half of 2024, this initiative is poised to enhance customer engagement.
Moreover, the integration of Sparkassen's local trading advantages into the Payback ecosystem is on the agenda, with plans to link the Sparkassen's own loyalty program to Payback.
CEO Brugger noted that changing consumer behavior due to the ongoing economic crisis is evident in shopping patterns. Customers are increasingly attentive to discounts and coupons, with an impressive 95 percent of accumulated points being redeemed. There has been a noticeable shift towards more affordable products and private labels in the grocery sector, while spending persists on experiences such as travel, events, and premium products like fine wines.
On the other hand, Payback has observed a trend of cautious spending in areas related to discretionary purchases, particularly in furniture and fashion. Consumers are increasingly inclined to save on specific leisure activities and dining out.