how does fetch make money

How Does Fetch Make Money? Fetch Reward’s Business Model Explained

Fetch rewards is a free application for both Android and iOS devices that rewards users for scanning their shopping receipts from purchases across a variety of retail stores.

If it is giving users rewards for their shopping receipts, how is it earning revenue for itself?

In this article, we will go through the business model of Fetch Rewards and understand its revenue generation techniques. 

What Is Fetch Rewards?

Fetch Rewards is a shopping platform/application that gives its users the opportunity to get  rewards by scanning their receipts in exchange for fetch points.

It is very easy to use the platform; all that is required of the user is to download one of the company’s apps, which can be found on mobile devices running either Android or iOS.

After logging in and registering for an account, users are prompted to take a picture of their most recent grocery receipt.

The image recognition technology of the application will then automatically identify any product which has been purchased and is eligible for points.

You are able to avoid dealing with any of the logistical challenges associated with earning cash back thanks to the fact that the Fetch Rewards app will handle everything on your behalf.

You will be able to receive cashbacks, and free gift cards and earn points nearly instantly if you do this, and it is one of the easiest ways to save money and earn bonus points that can be used for other purchases.

It is sufficient to present any receipt from any retailer. The Fetch rewards app will accept the receipt and award you at least 25 fetch rewards points as long as it contains the name of the store where the purchase was made, the total amount spent, and the date.

The time it takes to scan receipts, from start to finish, averages around 10 seconds.

How Does Fetch Rewards Work?

After signing up in the Fetch Rewards app, each user gets a specific number of fetch rewards points along with the first receipt scanned.

Every user has a unique referral code that they can give to a friend so that they can download the app. If your friend downloads the app and scans a receipt, the user will earn fetch rewards points. In general, 1000 points are equal to $1.

You can scan receipts from the supermarket, convenience stores, gas stations, grocery stores, or even from an online retailer if you like. Remember that you need to scan receipts no later than 14 days after the date of the original purchase.

Marketers can take advantage of the Fetch Rewards app to increase purchases for their brands. Businesses can also use the data from the Fetch Rewards application’s user behaviour to reach a specific target audience. 

The purchases can work as market research that businesses can purchase from Fetch.

Users are awarded points equal to 25 fetch points for each eligible scan.

When you make purchases of partner products from participating brands, you are eligible to earn additional points.

Also Read: Is Fetch Rewards Dangerous?

How Does Fetch Make Money?

The Fetch Rewards makes money mainly via two sources: affiliate commissions and interchange fees. 

Let’s look in detail at the business model of Fetch Rewards:

Affiliate Commissions

The majority of Fetch Rewards’ revenue comes from affiliate commissions, also referred to as referral fees, which are payments made by the company’s partners.

The contractual terms that have been agreed upon between Fetch Rewards and the partner determine the percentage commission that will be applied to the transaction.

There are numerous different reasons why popular brands give Fetch Rewards compensation for the transactions that they support. Firstly, you can only find advertisements for them within the platform itself. 

The fee is typically structured by Fetch Rewards so it is dependent on the total amount of sales that occur through its website. If there are more transactions, the affiliate fee that is charged to the partner is reduced.

Secondly, companies can then get a consolidated view of how their customers behave and evaluate which of their products performs the best. And finally, companies can promote certain products by boosting the number of points that customers earn for purchasing those products.

Repeated purchases of a product category will ultimately lead to increased customer loyalty as well as greater awareness of the brand.

An example of the affiliation is the Huggies rewards program that the Brand Huggies has created for Fetch rewards users. 

Best Buy, 7-eleven, AliExpress, Airbnb, Barnes & Noble, Bath & Body Works, EA, Epic Games, and Ikea are just a few names from the huge list of e-receipt retailers that fetch rewards support.

Interchange Charges

Late in the year 2020, Fetch introduced its very own debit card, which enabled users

to accumulate points simply by making purchases with the card. This was called 

Fetch Pay.

An exchange fee is charged when paying with a credit card. The person selling the currency is responsible for paying the exchange fees, which 

are typically less than one percent.

In exchange for recommending the card to customers, Fetch Rewards is compensated with a percentage of the fee that is levied by Mastercard. The exact percentage has not been made public at this time.

By providing its users with a Fetch Pay debit card, Fetch further integrates the users 

into its ecosystem besides providing some extra features.

In the long run, Fetch Rewards could also start analyzing its users’ spending 

patterns, which would then enable the company to make relevant recommendations 

regarding special offers to its users.

Also Read:Does Fetch Rewards Steal Credit Card Info?

How Much Money Does Fetch Rewards Make?

The company has not disclosed its revenue as it is still a private company. However, in the previous Series C funding round, CEO Wes Schroll said that the company is expected to make $100 million annually. 

Fetch rewards has made $582 million (approximately) from various rounds of funding. In April 2022, Fetch Rewards raised $240 million in funding on their 12th round which is even more than the $210 million they raised in their 10th round

History Of Fetch Rewards

Fetch rewards is a company based out of Wisconsin, United States. It is a mobile shopping platform created in 2013, that rewards customers for loyalty. The company was founded by Wes Schroll, Tyler Kennedy, and Daniel Litvak. 

Started earlier as a scanning application that allowed customers to scan their grocery receipts to receive rewards. Over time the company expanded to include other retail stores into the fold as well. Now the list is ever-expanding and it includes Best Buy, Epic Games, Apple, etc.

Also Read: How Does Affirm Make Money?

Valuation & Funding

Over the years, Fetch rewards has gone through a lot of funding rounds. Last year in March 2021, the company raised $210 million in a Series D funding round. This was a massive funding round in comparison to the Series C round, which only generated $80 million.

In April 2022, Fetch raised $240 million in the Series E funding round, which brings their total funds raised to $582 million approximately. 

The company is funded by 18 investors and their evaluation falls between $1 billion to $10 billion. The investors include DST Global, Nielsen, Greycroft, Yieldstreet, Iconic Growth, and Hamilton Lane advisors to name a few.

Also Read: How Does GetUpside Make Money?


Below is a list of competitors that operate in the same sector as Fetch rewards.


During the process of scanning receipts, Ibotta will award you with a reward.

In addition to this method, it implements a method for users to make interest payments and makes use of a browser extension to become more involved in the purchases made by users.

It is recommended that you use both apps for a period of time and then evaluate your earnings to determine which app is more beneficial to your shopping habits.


Rakuten is a company that provides users with rewards for purchasing products and scanning receipts.

Rakuten generates revenue through the use of an affiliate marketing business model every time one of its customer’s visits or makes a purchase from one of its partners.

Rakuten is generous enough to share a portion of its profits with its customer base in the form of cashback rewards as gratitude. Rakuten is a Japanese company based out of Tokyo.

Checkout 51

Checkout 51 is a cash-back app that allows users to earn rewards for doing things like grocery store shopping, buying gas, and shopping online.

When you have accumulated $20 in cash back, you have the option of requesting a check to be mailed to you or getting paid through PayPal.


Shopkick is one of the most widely used shopping apps in the world, boasting a user base of over 7.5 million people. 

The app provides users with rewards for engaging in shopping activities both online and in-store, such as scanning receipts, making purchases, etc, either in the app or in-store, and submitting receipts. 

Shopkick has partnered with a wide variety of successful retailers, including Macy’s, Old Navy, Best Buy, JCPenney, Crate and Barrel, Target, and Sports Authority.

L’Oréal, Kraft, and P&G are among the many companies that have partnered with Shopkick as brand partners.

Also Read: Can You Go To Jail For Not Paying AfterPay?


Honey is an extension for browsers that searches the internet for promotional codes and coupons that can be used to save money when making online purchases.

Honey and Capital one shopping are very famous as coupon and promo code providers which only require a browser extension that automatically suggests promo codes while shopping.

Promo codes and offers help users to get the best cashback and deals for their purchases.

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