Wasn't there a theory that every company is turning into a bank, because basically every company is doing loyalty programs, which are basically their own currencies. Think airplane companies, hotel chains, etc. For some only their loyalty program is turning them a profit, and their core business is a loss making part to support the loyalty program.
Loyalty programs are also a way to tag private data to cash transactions so they can find patterns in transactions that would otherwise not be traceable.
But I don't think loyalty programs are really acting like banks, they're primarily a marketing tactic and their purpose is to increase interaction with the business or product, not charge a service fee or interest.
Though most of these places do also have debit and credit cards, sometimes they act as an intermediary for a bank (I think the amazon credit card does that), but some are banks in their own right (president's choice financial is the bank for the loblaws grocery store chain, of bread price fixing fame).
Who are still price fixing bread, by the way. Along with the Sobey family, and the Metro chain of grocers in Québec.
Just 15 years ago I remember paying 79¢ for a loaf of whole grain bread, baked in-store. The in-store bakery no longer makes anything other than "artisan breads", that cost $5 a loaf. Pre-packaged shit that gets shipped in is $2.29.
If prices had tracked with inflation like everything else, I'd be paying $1.08.
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Wasn't there a theory that every company is turning into a bank, because basically every company is doing loyalty programs, which are basically their own currencies. Think airplane companies, hotel chains, etc. For some only their loyalty program is turning them a profit, and their core business is a loss making part to support the loyalty program.
Loyalty programs are also a way to tag private data to cash transactions so they can find patterns in transactions that would otherwise not be traceable.
But I don't think loyalty programs are really acting like banks, they're primarily a marketing tactic and their purpose is to increase interaction with the business or product, not charge a service fee or interest.
Though most of these places do also have debit and credit cards, sometimes they act as an intermediary for a bank (I think the amazon credit card does that), but some are banks in their own right (president's choice financial is the bank for the loblaws grocery store chain, of bread price fixing fame).
Who are still price fixing bread, by the way. Along with the Sobey family, and the Metro chain of grocers in Québec.
Just 15 years ago I remember paying 79¢ for a loaf of whole grain bread, baked in-store. The in-store bakery no longer makes anything other than "artisan breads", that cost $5 a loaf. Pre-packaged shit that gets shipped in is $2.29.
If prices had tracked with inflation like everything else, I'd be paying $1.08.
deleted by creator