How to Use Payback Points in Germany in 2024: Your Ultimate Guide

What is Payback in Germany and How Does it Work?

Payback is Germany's largest and most widely used cashback program. If you've been living in Germany for some time, you've probably seen the Payback logo at checkout counters, or been asked for your "Payback Karte" by a cashier.

Payback works with over 700 partner brands, including many of Germany's biggest retailers: Rewe (groceries), DM (drugstores), Amazon (online shopping), Aral (gas stations), Penny (discount supermarkets), and Alnatura (organic food). Each purchase at these partners lets you earn Payback points, which can then be redeemed for a variety of rewards, discounts, or even cash.

How to Earn and Maximize Payback Points in Germany

The standard earning rate is 1 point per €2 spent at any of the partner stores. 1 Payback point is equivalent to 1 cent – meaning you get 0.5% cashback on your purchases. Now, I know what you're thinking: it doesn't sound like much. Why bother then?

Enter coupons – this is where the magic happens. Payback coupons can multiply your points by 3 to 40 times the regular rate. That means instead of 0.5%, you could be looking at up to 20% cashback, making Payback truly worthwhile. Some coupons have specific conditions - for instance, certain Rewe coupons might apply only to delivery or pick-up service, while some Amazon coupons work only for specific product categories.

You can find and activate these coupons in the Payback app or on their website before shopping. It's also worth subscribing to the Payback newsletter to get notified of new coupons and offers.

To use Payback when you're shopping in store, download the Payback app that stores your digital Payback card as a barcode and scan it at checkout. A physical card is also available for those who prefer it.

For online shopping, download the Payback browser extension (called PIA, or PAYBACK Internet Assistent) and click on it to activate Payback before you check out. PIA will notify you if cashback is available on the website you're browsing and prompt you to activate it.

Payback also rewards you for using certain product features, such as activating coupons via their browser extension, or paying with Payback Pay (their own payment system, available in the app) at partner stores. If you have some free time on your hands, you can also earn extra points by participating in surveys and playing mobile games. Surveys only pay up to 150°P (€1.50), but I found that doing them once in a while is a fun way to learn some new German vocabulary.

Those looking to supercharge their Payback point earnings should consider the American Express Payback credit card. It's one of the best free credit cards in Germany that can significantly boost your Payback point accumulation. The card earns 1 point per €3 spent — anywhere, not just at Payback partner stores. Plus, it offers perks like extended returns and helps keep your Payback points from expiring. And did I already mention it’s absolutely free with no annual fees? If you’d like to learn more about Amex Payback credit card, check out this detailed guide below.

How to Redeem Payback Points

So you followed all the promotions, diligently clicked on coupons, and amassed a fortune in Payback points – now what? You've got several options to choose from when you decide how to redeem your Payback points. The basic rate is 1 Payback point = 1 cent, but you should always be looking for a better deal than that. Keep an eye out for offers and save your points until you find a good one – your points are valid for 3 years, so you’ve got plenty of time. Here are some ways to redeem your Payback points:

• Instant Gratification: Redeem Payback points at checkout in partner stores, where 1 Payback point equals 1 cent off your purchase. While this is an easy and convenient option, it’s not the best value unless there's a special promotion running. For instance, Rewe and dm occasionally offer 10-20% bonus on Payback point redemption, effectively turning every 1000 points into €11-12 instead of the standard €10. These promos are worth a wait as they help you redeem Payback points at a higher value.

• Payback Store: Redeem your points in the Payback store. Items like household items, gadgets or WMF kitchenware are often good deals – not all of them though, so be sure to compare the item point value with the actual retail price. Again, it's best to wait for promos like 1000°P off or a free item (like a WMF pizza knife) when you buy from the Payback store.

• Gift Cards: Convert your Payback points to gift cards for Zalando, Douglas, Apple, H&M, Ikea, and more. Wait for discounts on these vouchers to get more value for your points – you want at least 5-10% off for this option to make sense. This is my favorite way to redeem Payback points, especially when I see a good deal.

• Airline Miles: Convert Payback points to Lufthansa miles (1 point = 1 mile) if you're a frequent flyer. If you do that, consider using Miles & More credit cards to collect more miles.

• Charity: Payback allows you to donate your points to various charities – there are quite a few to choose from.

• Cash: This lesser-known option, which is somewhat hidden (by design, one might guess) on the Payback website, allows you to convert Payback points to cash in your bank account – just enter your IBAN and wait for your transfer to arrive. While this offers maximum flexibility, it's not an option I personally use or recommend because your Payback points are always converted at a basic rate of 1 cent, with no bonus opportunities — so you’re not getting the best value.

So there you have it – your crash course on how to use Payback points in Germany. Remember, cashback programs are essentially free money for you as a consumer, so it makes sense to take advantage of this program, especially considering how easy it is to use Payback when shopping. The key to Payback success lies in consistent use and diligent coupon activation – those small numbers can easily add up to a few hundred euros each year. Plus, it's kind of fun to collect and redeem Payback points — it’s like a game, adding a dash of excitement to your everyday shopping.

Ready to start your Payback journey? Here's a little motivational boost: sign up now using the link below, and you'll receive 200 bonus points!

Payback points are just one of many ways to get more value for your money in Germany — to get more money-saving tips and curated deals, subscribe to Smart Living newsletter. You will also receive deep dives into the best banking options, smart grocery shopping strategies, tax deductions, health insurance and much more — you can check out some of them below. Plus, follow Smart Living on Instagram for quick financial tips and time-sensitive deals!