The Cashback Trend in Germany — What Makes repay.me so Special?
72% of Millennials spend more than 3 minutes looking for coupon codes before buying anything online. 80% of consumers are ready to switch brands and shops if presented with big enough cashback or deals. And on average, Germans have 4 coupon cards in their wallet to collect rewards with.
The trend started in the UK/USA and when considering the statistics, it is no surprise that the cashback market volume is over $84 billion dollars with quite a few cashback portals existing in Germany at this point.
Simply put: up until now cashback was a bonus program where customers receive a small percentage of their purchase price paid back after making the purchase.
“Traditional” Cashback Systems
When using traditional cashback systems, the cashback platform receives a commission for leading you to the merchants website to make a purchase. From this commission, a part is paid to the customer, as cashback. This involves signing up on the cashback platform, then being redirected to the website you want to make a purchase from and then a cookie or plugin informs the platform that the purchase has been made, to then add the points to your account. While this sounds fairly straightforward, it’s not uncommon to reach bumps along the way. Sometimes it is necessary to confirm your purchase with receipt, due to the system not receiving the information from the shop where you made your purchase. Furthermore, the time until you actually receive that cashback also depends various factors, which can take weeks on end.
Currently, cashback systems in Germany offer between <1%-10% cashback on the net worth of your purchase, according to “Finanztest”. Depending on what kind of items you buy, the cashback will be lower. Electronics tend to yield much less cashback than clothing, for example.
Cashback in Germany
Cashback in Germany has thus far still received scepticism. One of the accusations is that it is hard to prove that certain purchases wouldn’t have occurred without the cashback incentive.
One of the popular cashback portals in Germany explains that cashback systems are not just a loyalty program, but that through the continuous generation of new customers, they are able to create a user model that allows for intensive email communication, which in return allows them to offer segmented groups specific offers and also offer advertisers optimal ways of scaling their offers.
repay.me: a New and Improved Cashback System
Hence, repay.me is changing the cashback world with their project. The entire cashback process takes place on one platform: the repay.me marketplace. This means you don’t get redirected to any pages and you don’t need to prove your purchases in any case. The cashback is also completely independent of the type of product you purchase, because we generate our cashback from advertising revenue and sales fees, not from commission from any online shops. And that is where the most exciting difference comes in: repay.me’s cashback is paid to the community in exchange for the data our users share with it. 80% of repay.me’s advertising revenue and sales fees is paid back to the users on a daily basis (using an algorithm based on user activity on the marketplace).
repay.me has successfully found a way to offer cashback without having to increase product prices, without having to rely on external shop commissions and without the lack of transparency that come with traditional cashback systems.
So not only will you get cashback for simply purchasing products directly from the repay.me marketplace, but you also gain control over your data (by choosing how active you want to be on the marketplace) and actually profit from that data.
repay.me has its fingers on the pulse of time by tackling both the price-sensitivity and data-sensitivity of millenials simultaneously and is very excited to see how this revolutionizes its users’ shopping experiences.
