Pepper Rewards has sent out the following email to users today:
Thank you for being a valued member of Pepper Rewards. We’re excited to share some updates, effective July 26th.
What’s Changing?
We’re transitioning from a static to a dynamic rewards system, allowing you to earn more points across a broader range of merchants. You may have already noticed some enhancements over the past few weeks. This upgrade lets us promote more brands simultaneously, providing you with greater value.
How Does It Work?
Starting July 26th, you will earn 20 points per dollar at minimum plus many merchants will offer boosted points of 3x, 5x, 7x, or even 10x. For example, at 5x merchants, you will earn 100 points per dollar. Points values remain unchanged: 10,000 points = $5.
Your Current Points
All points in your account remain unchanged. Only the points you earn from new transactions will reflect the updated system.
How to See Your Points Multiplier
Each merchant will display a multiplier (e.g. 2x, 3x, 4x, 5x, 7x, 8x, etc.) on their app tile. This shows how many points you will earn.
Why Are We Doing This?
Our goal is to offer you more choices and benefits by promoting a wider range of merchants. This dynamic approach will enhance your experience and provide even greater rewards. Look out for more information in the app tomorrow that further explains these changes.
A company is “excited” about “enhancements” that will “provide even greater rewards”? That can only mean one thing – they’re about to devalue the program so that you’ll earn less.
Sure enough, that’s what these changes mean. If you don’t know how much Pepper Rewards points are worth, earning 20x and then earning up to 10x (i.e. 200x total) sounds awesome. However, that’s until you work out how much those points are worth.
As a reminder, up until now Pepper has offered 5% back as standard. They changed things recently which resulted in a 100x earning rate being worth 5% back. That means this new 20x rate will result in you only earning 1% back as standard. As a result, a future 5x promotion which earns 100x points is only worth 5% back.
This is disappointing, but ultimately not surprising because there’s simply no way Pepper Rewards would’ve been able to continue offering the rewards that they had been. I imagine there’ll still be some deals here and there, plus you can pay with an Amex Business Gold card to earn 4x Membership Rewards if this is one of your top two spending categories this billing period. However, I suspect things will be much less rewarding overall going forward.
It remains to be seen what new member offers will be in the future too. Up until now, new members have earned double points (i.e. 10% back) for a limited period.
I just took advantage of the Airbnb promo yesterday and the promotional points were promised later. Does that mean those points are also devalued?
I don’t think the points are devaluing. I just think you earn less moving forward, so those shouldn’t be affected.
As Zach said, the value of points themselves aren’t changing – they’re just lowering the rate at which you’ll earn them for some brands (likely Walmart, Nike, Amazon, Best Buy, etc.).
Yeah that wasn’t a fun email. I’m assuming all of the top ones (Amazon, Walmart, Target, etc.) will be in the 1% back category
Does anyone know when they made changes to the referral system? (The $20 promo for the referee)