"Why Companies Love Co-Branded Credit Cards So Much" - Article | Credit card reward programs | Discussion forum

https://www.creditcardscanada.ca/blog/why-companies-love-co-branded-credit-cards-so-much/

Found this article well surfing the web.

Basically, they do it to get a share of the interchange fee (or boost the rewards of their card), use it for advertising, build brand loyalty, and consumer data.

It mentions it's a good idea for consumers to understand why companies like co branded cards. To me, we are giving data to them more so than a regular store (although co branded and loyalty programs are becoming the norm. now).

Those extra points do come at a cost all be it a bit hidden by the companies. I mean who reads the small text on the consent forms and pamphlets the CC gives us other than me...

The data you give has a cost to you and a value to them. Points are a value to you and cost to them. Some what mutualistic but than factor in data breaches and possible identity theft. It becomes less clear if it's a good idea to par-take in so many loyalty programs. Eventually one might find themselves with issues they didn't sign up for.

Plus, they point out, people usually spend more because of points and loyalty programs.

Add up the increased risk to ones I.D security, data being used to weaponize marketers against you, and the larger likelihood of one spending more, it starts to show its ugly head. The downsides of all these programs so many of us willingly subject ourselves to without a thought or care sometimes.

Here is a quote from the article:

"This is backed up by a 2016 report by the Nielsen Company that found that two-thirds of consumers shopped more often and spent more at retailers with loyalty reward programs."