One to watch: REWE takes loyalty into its own hands as retailer bids farewell to Payback platform

REWE and Penny are ending their loyalty partnership with Payback as rivals Edeka, Netto Marken-Discount, and Marktkauf get ready to join the latter's network.

REWE is planning to launch its own loyalty programme in 2025, called REWE Bonus, with CEO Lionel Souque last week teasing the move with the following post on LinkedIn: “From tomorrow, 29th December, ‘Blue’ will become ‘Eucalyptus’ and ‘Dragonfruit.’”

Oleksandr Koshovyi, Product Owner at REWE digital, added yesterday: “Unbelievable how quickly time has passed. Exactly two years ago, we started with the idea for a new customer loyalty programme. Today, at 00:01 on Sunday, I was able to collect my first bonus at the airport – an incredible feeling!”

“I am infinitely proud of the outstanding team effort at REWE digital with over 400 colleagues who were involved in product development. Now I'm looking forward to seeing how our programme resonates with our customers and what added value we can offer them in the future.”

As for Payback, Germany’s largest loyalty platform with 30 million users, it is set to expand its network significantly with the addition of Edeka and Netto. In addition, a new partnership with Sparkassen will enable its customers to automatically earn Payback points through their Girocards in 2025.

Dominique Pierre Locher, a retail CEO, non executive board member and investor, commented: "For consumers, this transition means change. Existing Payback points earned at REWE and Penny must be redeemed by 29th December 2024. For Edeka and Netto customers, the switch to Payback will offer new opportunities to earn rewards under a more expansive loyalty programme."

The shift also highlights a critical issue, he added. "Edeka, Netto, and others joining Payback will not own their customer data. By relying on an external provider like Payback, these retailers risk losing a key strategic advantage - control over consumer insights. In an era where data drives decision-making, this could hinder their ability to personalise offers, optimise marketing, and deepen direct relationships with customers."

He concluded: "REWE’s move to develop an in-house loyalty system reflects a broader industry trend, where businesses prioritise owning their data to gain a competitive edge. As the loyalty wars intensify, the long-term impact of this decision will be a key factor to watch."

2024 RTIH INNOVATION AWARDS

Loyalty programmes were a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards, sponsored by Vista Technology Support, Scala, CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, Business France, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended last month’s gathering.