how-does-getupside-make-money

How Does GetUpside Make Money?

GetUpside is a cashback app allowing consumers to earn rewards by scanning receipts created in 2016 by Jan Rubio, Joanna Kochaniak, Rick McPhee, Thomas Vaughan, and former Google employees Wayne Lin and Alex Kinnier. While similar services such as Groupon and LivingSocial email coupons to users, GetUpside maps discounts based on user location. GetUpside generates revenue primarily through affiliate commissions paid by the brands it partners with. Whenever a consumer purchases a product eligible for cashback rewards, the merchant pays the company a fee.

Origin Story

GetUpside is a cashback app allowing consumers to earn rewards by scanning receipts.

The app was created in 2016 by Jan Rubio, Joanna Kochaniak, Rick McPhee, Thomas Vaughan, and former Google employees Wayne Lin and Alex Kinnier.

While similar services such as Groupon and LivingSocial email coupons to users, GetUpside maps discounts based on user location. In other words, users open the app and see cash-back deals displayed on a map in much the same way Uber portrays nearby drivers.

The initial test run for GetUpside was confined to gas stations in Washington D.C. but quickly expanded to encompass restaurants and grocery stores.

During this time, the founders also focused on signing partnerships with BP and Kmart to increase supply on the platform.

In 2020, GetUpside signed a deal with competitors GasBuddy and Checkout 51 to have its personalized deal technology offered to more than 25 million monthly users.

The platform itself has also seen significant growth in users as more consumers look to save money in the wake of the COVID-19 pandemic.

GetUpside revenue generation

GetUpside generates revenue primarily through affiliate commissions paid by the brands it partners with. Whenever a consumer purchases a product eligible for cashback rewards, the merchant pays the company a fee.

While the affiliate model is nothing new, GetUpside can differentiate itself by using machine learning technology to personalize deals.

It does this by feeding a vast amount of data on spending history and behavior into algorithms that then produce specific product recommendations.

This increases the odds of repeat purchases, which in turn increases the affiliate commissions the company receives.

Merchant support

A sound relationship with merchants is fundamental to the success of the GetUpside app.

The company itself has the vision to connect people with businesses and in so doing, create vibrant local communities.

This connection must also be profitable for retailers.

Since customer deals are processed by GetUpside and not the retailer itself, the company can show merchants how much extra money they are making through any partnership.

Merchants also get access to anonymous data that help them identify their best and worst-performing stores or locations.

Merchant brands are also offered some degree of exclusivity. If the main street of a town has three gas stations in close proximity,

GetUpside will only display one and incentivize its users to visit it over the remaining two. Brands can also choose to attach more reward points to certain products they want to be promoted.

Ultimately, the GetUpside business model is very simple. But it is underpinned by robust data that benefits both the consumer and retailer greatly.

Key takeaways:

  • GetUpside is a cash-back app created in 2016. After initial trials in Washington D.C. gas stations, the service was quickly expanded to include restaurants and supermarkets.
  • GetUpside generates revenue through affiliate commissions. When a consumer makes an eligible purchase from a merchant on the app, the merchant must pay GetUpside a fee.
  • GetUpside is underpinned by robust consumer spending data helping businesses gain important insights into their stores, locations, and products. Being featured on the GetUpside App is also beneficial for businesses with strong local competition.

Read More: How Does TD Ameritrade Make MoneyHow Does Dave Make MoneyHow Does Webull Make MoneyHow Does Betterment Make MoneyHow Does Wealthfront Make MoneyHow Does M1 Finance Make MoneyHow Does Mint Make MoneyHow Does NerdWallet Make MoneyHow Does Acorns Make MoneyHow Does SoFi Make MoneyHow Does Stash Make MoneyHow Does Robinhood Make MoneyHow Does E-Trade Make MoneyHow Does Coinbase Make MoneyHow Does Affirm Make MoneyFintech Companies And Their Business Models.

Related FinTech Business Models

Acorns Business Model

how-does-acorns-make-money
Acorns is a fintech platform providing services related to Robo-investing and micro-investing. The company makes money primarily through three subscription tiers: Lite – ($1/month), which gives users access to Acorns Invest, Personal ($3/month) that includes Invest plus the Later (retirement) and Spend (personal checking account) suite of products, Family ($5/month) with features from both the Lite and Personal plans with the addition of Early.

Affirm Business Model

affirm-business-model
Starting as a pay-later solution integrated into merchants’ checkouts, Affirm makes money from merchants’ fees as consumers pick up the pay-later solution. Affirm also makes money through interest earned from the consumer loans when those are repurchased from the originating bank. In 2020 Affirm made 50% of its revenues from merchants’ fees, about 37% from interests, and the remaining from virtual cards and servicing fees.

Alipay Business Model

how-does-alipay-make-money
Alipay is a Chinese mobile and online payment platform created in 2004 by entrepreneur Jack Ma as the payment arm of Taobao, a major Chinese eCommerce site. Alipay, therefore, is the B2C component of Alibaba Group. Alipay makes money via escrow transaction fees, various value-added ancillary services, and its Credit Pay Instalment fees.

Betterment Business Model

how-does-betterment-make-money
Betterment is an American financial advisory company founded in 2008 by MBA graduate Jon Stein and lawyer Eli Broverman. Betterment makes money via investment plans, financial advice packages, betterment for advisors, betterment for business, cash reserve, and checking accounts.

Chime Business Model

how-does-chime-make-money
Chime is an American neobank (internet-only bank) company, providing fee-free financial services through its mobile banking app, thus providing personal finance services free of charge while making the majority of its money via interchange fees (paid by merchants when consumers use their debit cards) and ATM fees.

Coinbase Business Model

coinbase-business-model
Coinbase is among the most popular platforms for trading and storing crypto-assets, whose mission is “to create an open financial system for the world” by enabling customers to trade cryptocurrencies. Its platform serves both as a search and discovery engine for crypto assets. The company makes money primarily through fees earned for the transactions processed through the platform, custodial services offered, interest, and subscriptions.

Compass Business Model

how-does-compass-make-money
Compass is a licensed American real-estate broker incorporating online real estate technology as a marketing medium. The company makes money via sales commissions (collected whenever a sale is facilitated or tenants are found for a rental property) and bridge loans (a service allowing the seller to purchase a home before the revenue from the sale of their previous home is available).

Dosh Business Model

how-does-dosh-make-money
Dosh is a Fintech platform that enables automatic cash backs for consumers. Its business model connects major card providers with online and offline local businesses to develop automatic cash back programs. The company makes money by earning an affiliate commission on each eligible sale from consumers.

E-Trade Business Model

how-does-e-trade-make-money
E-Trade is a trading platform allowing investors to trade common and preferred stocks, exchange-traded funds (ETFs), options, bonds, mutual funds, and futures contracts; acquired by Morgan Stanley in 2020 for $13 billion. E-Trade makes money through interest income, order flow, margin interests, options, future and bonds trading, and other fees and service charges.

Klarna Business Model

how-does-klarna-make-money
Klarna is a financial technology company allowing consumers to shop with a temporary Visa card. Thus it then performs a soft credit check and pays the merchant. Klarna makes money by charging merchants. Klarna also earns a percentage of interchange fees as a commission and for interests earned on customers’ accounts.

Lemonade Business Model

how-does-lemonade-make-money
Lemonade is an insurance tech company using behavioral economics and artificial intelligence to process claims efficiently. The company leverages technology to streamline onboarding customers while also applying a financial model to reduce conflicts of interest with customers (perhaps by donating the variable premiums to charity). The company makes money by selling its core insurance products, and via its tech platform, it tries to enhance its sales.

NerdWallet Business Model

how-does-nerdwallet-make-money
NerdWallet is an online platform providing tools and tips on all matters related to personal finance. The company gained traction as a simple web application comparing credit cards. NerdWallet makes money via affiliate commissions determined according to the affiliate agreements.

Robinhood Business Model

how-does-robinhood-make-money
Robinhood is an app that helps to invest in stocks, ETFs, options, and cryptocurrencies, all commission-free. Robinhood earns money by offering: Robinhood Gold, a margin trading service, which starts at $6 a month, earns interests from customer cash and stocks, and rebates from market makers and trading venues.

SoFi Business Model

how-does-sofi-make-money
SoFi is an online lending platform that provides affordable education loans to students, and it expanded into financial services, including loans, credit cards, investment services, and insurance. It makes money primarily via payment processing fees and loan securitization.

Stash Business Model

how-does-stash-make-money
Stash is a FinTech platform offering a suite of financial tools for young investors, personalized investment advice, and life insurance. The company primarily makes money via subscriptions, cashback, payment for order flows, and interest for cash sitting on members’ accounts.

Wealthfront Business Model

how-does-wealthfront-make-money
Wealthfront is an automated Fintech investment platform providing investment, retirement, and cash management products to retail investors, mostly making money on the annual 0.25% advisory fee the company charges for assets under management. It also makes money via a line of credits and interests on the cash accounts.

Zelle Business Model

how-does-zelle-make-money
Zelle is a peer-to-peer payment network that indirectly benefits the banks’ consortium that backs it. Zelle also enables users to pay businesses for goods and services free for users. Merchants pay a 1% fee to Visa or Mastercard, who share it with the bank that issued the card.

Read Next: Fintech Business Models, IaaS, PaaS, SaaSEnterprise AI Business ModelCloud Business Models.

Main Free Guides:

About The Author

Scroll to Top
FourWeekMBA